The Dechiro Lofts, An Urban Development

[Katie Neason]

Investment Info:

Other commercial investment investment.

Purchase price: $250,000
Cash invested: $2,000,000

We purchased a couple of parcels of land, replatted and rezoned them to construct a small mixed use building with 20 residential lofts and 3 retail office spaces.

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

We have a passion in helping the renaissance that is taking place in our hometown downtown. We are looking for way to create assets we are proud to own, create value in the area, low maintenance and generate cash flow (which ain’t easy). 

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

The realtor called us about a fixer upper house the owner needed to sell. We knew it was adjacent to a larger undeveloped parcel that we had been “monitoring” for a while. The realtor owned the neighboring property and we were able to negotiate a simultaneous close.

How did you finance this deal?

Raised capital and construction loan that rolled to semi perm.

How did you add value to the deal?

Replatted, rezoned, and built from scratch.

What was the outcome?

Just wrapping up construction and have started moving residents in the lofts. Have the first commercial space shell space leased  

Lessons learned? Challenges?

This video wraps up many of the issues. This was the largest project we had done to date, it was the first commercial project we developed, and was riddled with opportunities to grow 😄

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Our MVP was definitely our GC consultant. Since we had not GC’d a project like this we hired a contractor that we had worked with a lot in the past as a consultant. They were golden.