Need some help in Chicagoland area!

11 Replies

HI everyone!  I need help looking for some buildings in order to propel my business.  What I'm looking for are specific traits for the building that might be a little hard to find.  What I'm looking for is basically a motel/hotel but for a different reason.  I will be housing people but for a short stay. Roughly two weeks at a time. I also need to remodel them to be customized to my design for the business.  I talked to a RE Broker and he told me i might be looking for a commercial broker.  I would like to lease a building with a 3-5 year term to see if my new business adventure works out or if i can find a nice enough building to purchase that can harvest my ideas I'm willing to take a look at those too.  If i am Going to purchase I would like for it to be in not good shape so i can add sweatquity.  Even for leasing Im willing to find a not so nicer place and fix it up myself if the price is right. The areas I'm currently looking at are in the Chicago north suburbs or northwest.  Glenview, Northbrook, Deerfield, Wheeling, and pretty much those surrounding areas.

Needs:

10-100 Rooms around 200-400sqf

Each room needs own bathroom and shower (its okay if not but must be okay to add)

Area for facility should not be near any trucking commerical places.  Needs to be some what quiet for relaxation

Needs office spots for admin and accounting.

Needs common area

Needs full commercial kitchen

Parking Lot

These are some of the things I need from this building.  I dont mind to put in sweatquity and add these things if needed.  As long as the price is right.  Also if there are rooms that are HUGE but can be broken down into two rooms i dont mind that as well. If anyone has any leads or needs more information please DM me and I will respond as quick as possible.  I can be pretty creative when it comes to this and i do have a vision that i want.  Thanks again for your help!

@Jason Albasha hi Jason my budget for lease would be from 3.5-10k monthly depending on sqf per room. For buying I would like To be under 900k. Again I want to build sweatquity Incase my idea doesn’t pan out, which is highly unlikely since I’m amazing, I can utilize it for something else such as rentals, Airbnb or just convert it back to offices to rent out.   I have several investors who are interested in my business and I have cash on hand Incase I need to put a down payment for lease option or even a down payment for purchase granted it’s the right price.   I’m willing to look at any property even if it is a little larger. If it’s more money I just have to talk to my investors to see if it’s viable for us or not. 

Is this a nursing home/care home type idea? Student housing? You can't just buy or rent a commercial place, build out a bunch of housing and stuff 100+ people into it. There are programs which allow aforementioned types of housing. You'll want to check out those resources and see where they may offer benefits to participants.

Search for commercial brokers and let them know you're looking for a hotel/motel. You may want to mention it's for "extended stays" which usually have a small kitchenette setup.

Looking for partners, etc. isn't allowed on the forums so I'll leave you with that. Good luck! 

@Jason Albasha thanks for the info jason.  I didnt know there are special regulations for that.  I have a friend who works in the insurance field and specializes in the area that im trying to run.  It is not a nursing home or student stay but i do need the rooms for a type of stay.  I will look into that and figure more stuff out.  Also would you or anyone know any good commercial brokers?   

Try loopnet . I can imagine finding something like that for sale but hard to imagine someone leasing you that and letting you make significant changes to fit you.

depending on your idea, I do imagine running into regs might be an issue.

Good luck.

@Eric M. thanks for the info.  Ive been searching high and low for the space i need for the idea i have. Yes those rules and regs are going to put me in a little bind but its not something i cant overcome.  I just need to figure out where i need to invest.  It seems like i might have to buy and build.

Originally posted by @Kevin Kong :

HI everyone!  I need help looking for some buildings in order to propel my business.  What I'm looking for are specific traits for the building that might be a little hard to find.  What I'm looking for is basically a motel/hotel but for a different reason.  I will be housing people but for a short stay. Roughly two weeks at a time. I also need to remodel them to be customized to my design for the business.  I talked to a RE Broker and he told me i might be looking for a commercial broker.  I would like to lease a building with a 3-5 year term to see if my new business adventure works out or if i can find a nice enough building to purchase that can harvest my ideas I'm willing to take a look at those too.  If i am Going to purchase I would like for it to be in not good shape so i can add sweatquity.  Even for leasing Im willing to find a not so nicer place and fix it up myself if the price is right. The areas I'm currently looking at are in the Chicago north suburbs or northwest.  Glenview, Northbrook, Deerfield, Wheeling, and pretty much those surrounding areas.

Needs:

10-100 Rooms around 200-400sqf

Each room needs own bathroom and shower (its okay if not but must be okay to add)

Area for facility should not be near any trucking commerical places.  Needs to be some what quiet for relaxation

Needs office spots for admin and accounting.

Needs common area

Needs full commercial kitchen

Parking Lot

These are some of the things I need from this building.  I dont mind to put in sweatquity and add these things if needed.  As long as the price is right.  Also if there are rooms that are HUGE but can be broken down into two rooms i dont mind that as well. If anyone has any leads or needs more information please DM me and I will respond as quick as possible.  I can be pretty creative when it comes to this and i do have a vision that i want.  Thanks again for your help!

What you're looking to develop is commonly known as a Single Room Occupancy (SRO) facility. Cities or towns regulate the type of properties they will allow; i.e. zoning. I don't recommend talking to a commercial broker.   I recommend you do your homework on the zoning regulations for the cities/towns that you're considering for this venture. You may find a building and get stuck with it because the city won't allow you to develop an SRO. The sweat equity you need to put in is to do some homework and get to know the zoning people. In many cases, it's not actually up to zoning, it's up to the city board or politicians on what they want or don't want in their town.

If you're planning an SRO, your exit will be problematic, too. City of Chicago requires a payment of thousands of dollars to SRO tenants being tossed out do to the SRO closing even if they've been there for as little as 30 days.

@Crystal Smith   Thanks for the reply!  I do know about zoning and everything that i have to get done that may be a problem.  I talked to many people and they all seem to not know how to go about this because what I'm looking for has never been done in the US expect California.  I went to illinois.gov website to look at the applications and zoning.  I do plan on calling the city hall of the area and see what steps i need to do.

@John Clark Thanks John!  The current place I'm looking into is currently an office space that I'm looking into converting and using it for my business.  Hopefully I wont get hit with some crazy penalties or anything but just in case maybe ill contact a lawyer and make sure my backside is covered.  Thanks for the help

Originally posted by @Kevin Kong :

@Crystal Smith  Thanks for the reply!  I do know about zoning and everything that i have to get done that may be a problem.  I talked to many people and they all seem to not know how to go about this because what I'm looking for has never been done in the US expect California.  I went to illinois.gov website to look at the applications and zoning.  I do plan on calling the city hall of the area and see what steps i need to do.

@John Clark Thanks John!  The current place I'm looking into is currently an office space that I'm looking into converting and using it for my business.  Hopefully I wont get hit with some crazy penalties or anything but just in case maybe ill contact a lawyer and make sure my backside is covered.  Thanks for the help

 What your planning has been done before. It’s not new. You may be putting a different spin on it, but it’s not new