All Forum Posts by: Maria V.

Thank you both for your insights! This is very helpful. 

Hi - first off, my apologies because I have asked this in a previous thread but this particular question has not been answered. Hoping it's ok to re-ask here...

My family owns a couple of commercial properties in an area in Boston that has increased dramatically in market value in the lat 10 years (gentrification, not too far from downtown/colleges/hospitals, etc.). Currently, we want to explore the development of one of the properties, which sits on approximately 14,000 square feet. The structure on it now is a one story building used as commercial office space and leased to various tenants. We have done a little bit of digging and know that based on the zoning code, it is zoned local convenience, meaning we can develop a mixed use property with residential uses on second story and above. (We would have to seek zoning relief and go through a project review as established by the zoning code in order to build what we want, which is an estimated 22 units at an average gross area of 1,200 per dwelling unit.) This gives you an idea of the scope we are considering.

But another option could be just to sell it outright and use the funds to develop our other properties. Given our options, does anyone have any suggestions on what our next steps should be in determining what would work best for us (develop vs. sell)? As I mentioned in my original post, we are complete newbies but do feel we are sitting on something potentially lucrative. Should we hire a RE Strategy Consultant - and how much might that cost? Upon some quick research, I feel like we need to do two things:

-Hire someone to do a feasibility study

-Pay for a property appraisal/market evaulation to see if it's worth selling now, or developing and reaping the rewards later.

Would a RE Strategy Consultant be able to help with both items?

Would love some thoughts/suggestions.

Great post! Thanks for sharing.

Thank you for your advice, Manolo. With so much $$ at stake, it's so important to be completely informed and make the right call.

Hi again! A quick update... another option at this time is to also sell the property outright to an investor/developer. Given all our options (develop ourselves, partner with a developer/investor, or sell), what should be our next steps in determining what would work best for us? As I mentioned in my original post, we are complete newbies but do feel we are sitting on something potentially lucrative. Should we hire a RE Strategy Consultant - and how much might that cost? Upon some quick research, I feel like we need to do two things:

-Hire someone to do a feasibility study

-Pay for a property appraisal/market evaulation to see if it's worth selling now, or developing and reaping the rewards later.

Would a RE Strategy Consultant be able to help with both items?

Would love some thoughts/suggestions.

Thank you!

Hi Ross, thank you for your response. We potentially have access to the cash via a private funder, but no we haven't talked to a bank yet.  This is a family property and one of us wants to try and develop it on our own and others want to bring in partners. We are not experienced enough in this type of project, so I'm leaning towards voting to work with a development partner. Your experience is really helpful. Thank you!

HI - not sure if this is the right group, but hoping it is. I just joined this site as I am researching options for developing existing property in a highly marketable area in Boston. We own a one-story commercial building, on about 20,000 square feet. Currently it is fully occupied with 5-6 commercial tenants. Mostly office space and a chiropractor. The area is in a hot market at this time and we have received several unsolicited offers. However, we are interested in exploring developing it into a residential multi-family building (either as condos or apt rentals - not sure yet). It is currently zoned or easily able to be zoned to a 3 story, 22-unit property with underground parking. This would be a large development project, and we are not sure whether to try and develop it ourselves or bring in an investment partner. As you can see, this is in the preliminary concept stages. We've spoken to city official we have relationships with, local, trustworthy business associates, an architect and contractor who all think it is a feasible idea. What are the things to consider when exploring developing on our own (which would entail personal collateral and cash investment) vs. with an investor partner?

Any general advice and things to consider on how to proceed with our options. Please forgive my ignorance, but that's what I'm here for - to learn from all you pros!

Thank you.