Oldest funeral home in Florida -> Mixed use / multifamily
Investment Info:
Large multi-family (5+ units) commercial investment investment.
Purchase price: $645,000
Cash invested: $1,000,000
Purchased 11k sq ft historic funeral home which had been partially converted to a strictly residential property by former owners.
Reconfiguring property interior to hold 13 apartments (8x studios, 4x 1 BR, 1x 2 BR) and retail space for a restaurant, coffee shop, wine bar, etc.
Also increasing parking capacity and adding pool / outdoor space directly adjacent to the structure for future residents.
What made you interested in investing in this type of deal?
The building's historic nature (I don't own any properties with structures less than 100 yrs old), its prime location in an upcoming part of downtown Jacksonville, and its price.
How did you find this deal and how did you negotiate it?
Realtor who sold the property to the former owner texted me that it had been listed FSBO by the the former owner
How did you finance this deal?
Received low interest loan from national non-profit to cover the acquisition and renovation cost.
How did you add value to the deal?
I brought in a top GC to run the renovation of the project and as the operator of a property management company with over 75 units under management (mix of retail and residential) I'm able to help design its future state to maximize revenue and minimize costs.
What was the outcome?
We shall see!
Lessons learned? Challenges?
The property had some minor environmental issues which resulted in the closing taking almost 6 months. Getting the loan from this non-profit was also extremely painful although the terms area fantastic.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Janie Coffee - top notch realtor
Universal Engineering - environmental engineers/consultants
Amy Wan - deal syndication