Commercial Property in the middle of down town

[Joseph Delarosa]

I've come across a property that has some amazing potential at a great price. Property is located in the middle of down town. Prime location of this area. It currently is zoned C3 and there are two non-profit business's and one for profit. 

The building itself is 2 story, approx 16,000sq/ft, on a corner lot, 3 entrances, elevator, 2 stair wells, and seems to be in decent shape. Asking $150,000. 

I met with the city developer recently and the first thing he asked me what my plans were for the building. (Lesson learned, never go to a meeting without a few strategies). I told him I had three idea. 

1. Turn it into a high end young professional apartment complex 

2. Lease it to a guy I know who wants to open a multi-beer tap bar. leave one of the current business's in place, and use the upstairs as high end execute offices.

3. To see how the city wanted to see the property developed.

His response. He wants to bring more people to the down town area after 5pm. Didn't say much else. He also would answer the million questions I had for him. We exchanged cards and he asked me to email him for further information when it was available.

I know there are a ton of politics involved, but my plan to move forward is this.

Get my architect, contractor, and broker involved in my initial inspection. Get an estimate for repairs, approximate value, and make a proposal with future plans.

I'm gearing this post towards an open discussion because this is advanced investing for me, and I don't know what I don't know. 

[Sean Walton]

Generally people downtown after 5pm means more residential. However depending on how dense and gritty the Downtown is people may not want their bedroom windows near the sidewalk. So you could do retail/restaurant or office space on the ground floor and residential above. If the renovation is extensive you may even add a 3rd floor of residential if the structure can support it. Mixed use can get tricky with zoning and code but may get you the best return. Also see if the city will require a sprinkler system or upgrading sprinklers

I agree with the poster above try and make purchase after the permit is in hand but make sure the seller can't back out once you invest all the time and money on permitting.