Commercial Development- Historic Preservation
Investment Info:
Other commercial investment investment.
Purchase price: $480,000
Cash invested: $1,000,000
Sale price: $1,600,000
Commercial Property built 1915, Construction Project in 3 phases. 14,000SF complete rehabilitation conforming to current building codes.
Construct a new Facade to improve the retail floor for public assembly, build-out a new restaurant on the street floor 2003.
Install 3-floor elevator 2006
Complete other floors 2011
What made you interested in investing in this type of deal?
Income-producing property with the space available to operate a small business at the same time. Multi-tenant project.
How did you find this deal and how did you negotiate it?
The building was on the market for 6 years in desperate need of complete new infrastructure to be occupied.
How did you finance this deal?
Combined with my own capital, a recipient of an SBA loan, other private funds, I was able to build out a full-service restaurant that I operated for 10 years. The other floors of the project were completed in 3 phases over time.
How did you add value to the deal?
Years of sweat equity, working 7 days a week. At the same time continued to build equity.
What was the outcome?
Honored with a Preservation Award 2006. I sold the property too soon!
Lessons learned? Challenges?
Older buildings are more expensive to rehab, some of the structure does not meet today's codes, therefore required all new mechanicals having to dig up streets to install outside plant first.
Going forward, stay away from conventional lenders and the SBA with hidden fees.
