Ontario Art's District - SoCal

[Damien Melle]

Investment Info:

Retail commercial investment investment.

Purchased an old 1930's automotive dealership and manufacturing facility in the heart of Downtown Ontario, California. The building has been transformed into a new retail store, office space and restaurant space (phase 2 starting Q1, 2024).

What made you interested in investing in this type of deal?

As a developer, we are always looking for up and coming areas to invest.

How did you find this deal and how did you negotiate it?

Old fashion, driving around. This property was not listed on the MLS. The owner lived out of state and it had been vacant for more than 20 years.

How did you finance this deal?

Cash & owner carryback

How did you add value to the deal?

Per square foot, based on comps in the area. But, we also looked at the new use of the building to determine potential income after construction.

What was the outcome?

Completed phase 1 of the project, the building received an award from the City of Ontario. We are currently in plan submission for Phase 2.

Lessons learned? Challenges?

Old buildings have many unknowns. Interior demolition and retrofitting should be considered from the start.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We own and operate our own brokerage and construction company. All works was done in-house.

[Dmitriy Fomichenko]

Wow, nice @Damien Melle !