Rental Property Investor · Jeffersonville, IN · Member since 2012 · 72 posts · 40 votes
We inherited a warehouse in Central Ohio, and the roof is failing. The building is over 120 years old, but is not considered a historical landmark, and is not nearing condemnation yet. I contacted a deconstruction company, but they determined the buildings materials are not valuable enough for them to deconstruct at a profit.
The warehouse is 16,254 sq ft over five floors. The internal structure is sound and supported by wood pillars, wood floor joists, and wood beams(unfortunately they are coated in lead-based paint). The building has about 15,000 sq ft of of original unfinished oak flooring. The exterior of the building is clad in painted red brick, and was deemed unsalable by the deconstruction company.
I am not arguing the deconstruction companies stance, but I am trying to find a solution to our dilemma. Fortunately the property is in a part of town that is being revitalized, and the land is worth more than the structure. From my research, I expect the cost of demolition would approach $80,000, but the value of the land would not cover the expense.
We would appreciate any thoughts the BP community has.
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
11y
Could you try to get the city or county to buy it?? They might have special grants from fed or state where they can offset costs and get better demo pricing or rehab than you can. Also you might have environmental issues.
Might be best to sell off and let someone else deal with the mess.
Investor · Twin Cities, MN · Member since 2009 · 163 posts · 40 votes
11y
Not sure about Ohio, but many states have rehab grants even if it's not on the histrionic register. Also look into community development block grants and if it's in a TIF district. Unfortunately, many times, rehabbing these older commercial properties is not worth the money if there are no federal, state or local kickins. If you don't have any experience in rehabing then you may want to just list it for the land value and sell it.
Flipper/Rehabber · Elkhart, IN · Member since 2014 · 197 posts · 41 votes
11y
I think @Greg V. states to see if there are any grants that might help you restore the property or even use that as an incentive to sell it. If the building is in an area where it could be turned into a business incubator, for new and growing companies. You might be able to separate it into units for mixed use (industrial and office) and have a good ROI. If you belong to your local REA you might find some answers there also.