BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated about 1 year ago on . Most recent reply
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Mixed use property in Philadelphia
I'm looking to BRRRR a CMX2 triplex in Philly where the first floor must have a commercial section. I have a few questions I'm hoping to get clarity on. Maybe some people have encountered this before.
1) As the owner, do I need any special license (other than the rental license required in Philly) to rent that commercial space out as an office?
2) Has anyone been successful at turning that 1 commercial space into an apartment + office? The space is quite large (17' x 60'), and I wanted to split it into 1/2 commercial space and 1/2 apartment. The regulation only requires the first 30' from the front of the building to be commercial space.
I'm hoping to get some insight from you if you've done this before.
Thanks
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- Attorney
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Jephte,
The rental license only pertains to the residential units The commercial space will require a separate use permit depending on the tenant's business. You should confirm their is zoning permit and/rental licenses for the current residential unit count. Your ability to convert the rear of the the ground level commercial space to an additional residential unit is based on the lot size, egress capabilities, whether your building is on the register of historic places amongst other factors (as there are various zoning overlays that could impact this determination). If the lot size does not allow the additional residential unit, and one of limited exceptions don't apply you would have to obtain a use change variance from the ZBA where you will be required to demonstrate hardship exists impacting your ability to use the entire ground level space for a commercial use. I have obtained this use variance before and I'm currently working on a similar request pertaining to a CMX25 property which shares the same ground level commercial requirement as your CMX2 property. I can share my experience if you reach out to me with additional information on your property.