My company is looking to expand into the value-add apartment building market from ground-up development. I am trying to understand what condition class b/c are in regarding their mechanical systems. What mechanical systems do you see in these older apartment buildings? Are these replaced or repaired after purchase and with what system? In general, what repairs are done after purchasing a class b/c apartment buildings?
Thanks for you help!
I own an 1880 4-family in a class C neighborhood, moving closer to C+ lol. The bones are good, the structure is sound however there are many aging "systems".
- Gas Boilers - 30+ Years Old
- Hot Water Heaters - 10+ Years Old
- Electric Panel - Upgraded within past 10 years but could be upgraded even more
- Pipes are old, corroded, and some leak often
- Windows/Doors that haven't been updated require much more labor to remove/replace as the wood is often rotted
- Roof is old, has recent touch ups but will need a major repair down the road (10 years hopefully)
- Interior is covered with old wall paper, most walls have multiple layers and are a PAIN to remove
- Also, shag carpets were apparently a thing back in the day so get ready to rip those bad boys up and replace them or refinish the hardwood if possible
There is much more of course but those are some that I definitely noticed right away and are what I plan on tackling, priority wise
Any questions let me know!
@Sunil Sajjan there really is no answer for your question. You will find different systems in different areas and every building will have different aged systems. Now in general a C class building is built between 1950-1980. With this type of property you could have galvanized and cast iron plumbing, aluminum wiring and old HVAC. The life expectancy for a lot of these items are at the max and will need to be replaced. A 50 year old boiler from 1970, is on it's last leg, same with 50 year old plumbing.
As for what system to put it. That depends on the area of your property and also the old system. Often it makes sense to change out with a like kind system with higher efficiency. In some cases you can switch out to an entirely new set up, but that could be cost prohibitive.