All Forum Posts by: Ryan Schaefer

Thank you!

Hi all,
I'm planning a smaller mixed-use project (medical/office + apartments second floor and above). I'm looking for a tool to estimate operating and maintenance costs for both uses. The model I found on Adventures in CRE was for condo / retail which doesn't really apply.

Any recommendations, or perhaps some thoughts on other ways to estimate monthly expenses for mixed-use?

Thanks in advance!

Great feedback. Thank you!

After several single-family properties, our goal is to get into multi-family. Maybe I’m being too optimistic, but given only 10-12 units, I had planned to take the same management approach. (I manage administrative, financials, etc. and have a PM who takes the tenant calls and coordinates repairs as necessary.) Perhaps I’m naïve thinking this would scale up?

Our other major unknown is financing. Up to now, my only conversations with banks has centered on purchasing land and the smaller MOB with no apartments above it. In this approach, we were thinking SBA. If we occupied the entire first floor (51% of building) instead of half of the first floor, could we still use SBA to do the ground-up given our mix-use plans for the second floor?

Thank you. Those are good points. On parking, we have already done preliminary site plan and know we have enough parking space for 7000 soft MOB and also a 10,000 sqft retail. But we aren't interest in doing the retail right now. We are interest in the residential.

Snow removal is luckily not a concern. Zoning will require an elevator. Sound is a potential issue, although I would hope that can be mitigated by the building design. (Our office is currently located next to other tenants, and we have never had any issues.)

But are there tools to analyze this from a financial perspective? ROI is the big unknown for me right now.
 

Quote from @Simmy Ahluwalia:

1.  If the land is big enough to accommodate both your wife's MOB and a separate, independent apartment complex, I would offer the following:

a.  Leverage SBA (owner occupied at 51%+) for the construction of just the Office piece.

b.  Create separate plans for an apartment complex next door to the office complex.

Thank you. The land might allow that us to do a separate apartment complex, but we thought that mixed used to put the some apartment above the MOB would be a cost-effective approach from a $/sq ft perspective. 

Are you suggesting this approach because it allows us to use SBA to do the entire owner-occupied office, or am I missing some other reason?

Great info. Thank you. I agree about the synergy; doctor/dentist is not as good as retail for that. However, in our case I believe it kind of gets two birds with one stone, right? First, we've already pre-leased for half of the first floor (my wife) and second, it is rent replacement for her. 

Given the location and community need, I think we could likely pre-lease for the entire commercial and also have immediate interest in the residential. Do you agree?

So on the surface, it seems like a great opportunity. Can you suggest tools I could use to analyze the numbers and my assumptions in more detail?

Hi everyone. New here, first post! I have some experience with single family rentals but now considering a commercial real estate opportunity and hope to get some expert input.

I'm under contract for some land on which I will build new medical/dental office (my wife will occupy half). We are planning to build some extra leasable space for another professional tenant TBD. 

Here's the opportunity we are considering: Zoning allows for multi-family apartments “second floor and above.” Given current planned size of the first floor, we could add 10-12 units on a second floor. The location seems great for apartments (apartment complex next door is at capacity) and there is growth all around. Does this idea make sense? What is the best method/tools to assess/analyze this opportunity? The total project cost would be at least 2X what we were planning to spend for the first floor medical space (but less on a $/sf basis), so do we continue to try and finance ourselves or is this a deal ripe for a partner?