Historic Commercial Venues and Condo Conversions

[Dan Logsdon]

We're considering investing in a 3 story historic building in Texas, in an up and coming downtown.  Currently the building is gutted but has great bones.  We have an architect who's helped us draw up plans for converting the first floor into a commercial space and the 2nd/3rd floors into 5 apartments/condos all about 2,000 soft in size.   This is my business partner and I's first time with mixed use and condos.  Hoping to get some help in these areas:

1.) Guidance from more senior real estate professionals on condo conversions

2.) Converting a commercial space to a mixed use venue (weddings, meetings, celebrations, etc).  Who's done this before?  What are the best practices for making this successful?

3.) Guidance on performing due diligence with a complex property

Looking forward to hearing from you all

[Mike Reynolds]

Originally posted by @Dan Logsdon:

We're considering investing in a 3 story historic building in Texas, in an up and coming downtown.  Currently the building is gutted but has great bones.  We have an architect who's helped us draw up plans for converting the first floor into a commercial space and the 2nd/3rd floors into 5 apartments/condos all about 2,000 soft in size.   This is my business partner and I's first time with mixed use and condos.  Hoping to get some help in these areas:

1.) Guidance from more senior real estate professionals on condo conversions

2.) Converting a commercial space to a mixed use venue (weddings, meetings, celebrations, etc).  Who's done this before?  What are the best practices for making this successful?

3.) Guidance on performing due diligence with a complex property

Looking forward to hearing from you all

I have done a few of those for other people. The main thing to look out for in Texas is that every city building codes are different. From non existent to Miami Dade nightmare. I even worked one city where I pulled a permit and they never even had an inspector hired. 

Other than that you will be up against the usual. Lead paint, asbestos and likely knob and tube wiring.  Figure that stuff on your prelims and you won't be sorry. 

What city is it? If you don't want to put on here then PM me. I may have pulled a permit there before and can maybe get you an idea of the red tape.