Converting single tenant to multi-tenant building

[Robert T.]

We acquired a 4300 sf restaurant building that sits on a one acre lot on a major freeway in Houston Because of the size and hence the cost, we had difficulty finding a strong enough single tenant (we marketed at $1.90/sf modified gross). Our proposal is to divide the building into 3 seperate Units (1000 sf, 1500 sf, 1800 sf). We have a new roof, building is in good condition and there is no asbestos. HVAC is sufficient. Currently, there is only one electric & water meter, 2 bathrooms. Besides having to add one more bathroom, we will need to build the walls, redirect the AC ducts, plumbing, electric, new doors and windows etc. I know we have to visit the architect to get a feel of the cost; but has anyone done conversion form STR to MTR before and what are the pitfalls? Any ideas of an approximate cost psf? Is it cheaper to tear down and re-build? Thanks!