Develop Historic Downtown Building into Mixed Use

[Luke Easley]

I am partnering with 4 individuals to develop a mixed use building. This a 4 story historic building. It has been sitting vacant for many years, so this will definitely be a large undertaking.

24,000 sqft total

Create 12,000 sqft of loft apartments in the upper 2 floors.

Create 12,000 sqft of retail/restaurant space on the ground floor and and basement.

I have never done a project of this size and have never done a commercial develop project at all. My background is in residential and commercial property management and hospitality/short term rentals.

I have questions about the due diligence process and business structure:

- Once we get the property under contract is there a typical time period to allow for due diligence? Is 120 days fair?

- Should I bring in a commercial contractor with me to look at the property before we get it under contract or after?

- I do not plan to bring much if any cash to the table. Would a lender typically lend to a business where the managing partner doesn't have a track record, but there is cash in place to make the necessary down payments and more? My partners have the funds to make it happen, but they do not have the time to put the project together.

- What would typical split in equity be for a deal like this where I am coordinating all the pieces and 4 other individuals are the money partners?