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Updated about 9 years ago,
Commercial real estate development question
Just wanted to test my luck to see if there are any active BPers who are familiar with commercial development.
I have a 1.09 acre parcel zoned for commercial and am looking to develop a small 4-5k square foot restaurant in this space. It is a great location surrounded by three large apartment complexes with no nearby food aside from a gas station next door, the value in this is there is already an entrance, there is also a large 6.8 acre PUD parcel zoned for apartment or assisted living right across the street. It is located right off of two major Indianapolis highways so there is even more potential for foot traffic.
My vision is to develop a small fast food building, lease it, then sell it as a turnkey property to either the tenant or an out-of-state commercial investor.
So my question is; as an inexperienced developer with limited capital and unlimited sweat equity, how would I go about beginning this process? Would my first step be to find a retailer who is interested in leasing my building? Or would I work on obtaining the construction loan? Or simply find a JV partner?
I understand there is limited value in sweat equity. Does this make it impossible for me to accomplish? Would it be better for me to simply sell/lease this parcel as-is and save up capital for other future projects?