Former Resi Going Commercial for eventual redevelop

[Kyle Piasecki]

Investment Info:

Single-family residence buy & hold investment in Charleston.

Purchase price: $340,000

Previously a single owner single family home. Located on a busy and growing commercial corridor directly across the street from Wal-Mart. Property is newly zoned for commercial use. Looking to lease as is with minor fit-out to commercial tenant. Plans to hold and redevelop in future into highest and best use. Two story commercial office space.

What made you interested in investing in this type of deal?

Idential property next door sold 8 months earlier for $80,000 more. New zoning/usage was now commercial, Proximity to Wal-Mart and new grocer coming in nearby. Road currently has 26,000 VPD and island is growing rapidly. Scarcity of approved commercial properties on this busy road. Future major highway will add to vehicle traffic to be built in upcoming years.

How did you find this deal and how did you negotiate it?

Listed on MLS, sat for a while. Listing price was $390k negotiated to $340k

How did you finance this deal?

Commercial Loan 5yr term 20 year amm.

How did you add value to the deal?

Stabilizing with commercial tenant. Will eventually demo and build new structure

What was the outcome?

Remains to be seen

Lessons learned? Challenges?

Finding tenant interested in Class C office space take time, plus one that can afford to do a fitout. Had to do some demo on my own to help tenants visualize the property as a commercial space.