Does anyone have any special Tactics for large apartment complex

Question

Me and My brother have found this great office building for sale on the same block as a very expensive private college. When I was in college in Philly I lived in one, it was nice but nothing crazy fancy. For a two bed two bath it was $3,000/ month, I know this market as I have rented out multifamily homes to them. I am just struggling to figure out how I would afford the monthly interest expenses as construction on this type of project would take a ton of time and money.

The building will be luxury student apartments which on my rough calculations can have realistically 60-65 apartments or 180-195 beds. Being a different type of real estate and nothing like it around I can get realistically $1,500- $1,700 a bed being a different realm of real estate (especially in my area).

I just need to know is there any type of private lenders who specialize in much larger transactions with having windows on time of finish which I estimated at around 2 years. I have enough for 20% down of the $7 Million I would have budgeted for but wouldn't have enough again to cover the acquisition cost and then interest payments on a construction loan.

Any help is appreciated

Thank you

Greg Scott · Answer

Most office is not suitable for transformation to multifamily.  Unless you know exactly what you are doing, you could be financially destroyed.

Listen here: https://www.victorjm.com/2022/05/office-to-residential-conve...

Dustin Tucker · Answer

@Gabriel Pietryka

If I were you I would find a developer that has already completed an office to condo conversion, and form a partnership. Most developers are always looking for Capital and if you already have the project under contract you have the upper hand.  I work with several family offices that could potentially finance a project like this with 10% down the main problem in getting financed is getting your project permit ready which can sometimes take over a year or longer.  One way to save on the negative carry is to delay the purchase until the very end of permitting.  I have seen some sellers wait two years to close on a property those are definitely rare circumstances.