All Forum Posts by: Derek Bell

I’m in the flex commercial/industrial space. The cost per sf for your build looks about right. Looks like you got a deal on the land at 500k. Only thing I would caution you on is checking to make sure you have the correct and necessary utilities on site. Also make sure you check fire suppression requirements on min square feet per buildout. The biggest thing I see is the ratio to land to build size. With only 1.8 acres, thats not much to build a 30k sf warehouse. Really just no way to do that size of warehouse with only 1.8 acres. 

@Cole Bigbee

Yes, just like a nichiha panel. If you would be willing, would you please dm me a contact or two of someone that is familiar with PEMB and nichiha panels. Also, may be contacting you for our PEMB needs as my last supplier messed up a few things on my last order. 

@Cole Bigbee

Thx for the reply. 
I’m curious. Have you ever done the brick veneer panels on pemb? 

@Douglas Gratz

What’s the latest on your project? 

I develop and also act as my own GC. Was going to post this to the “contracting” forum, but most of those posts were residential GC. 
I am building two buildings one @ 7500sf and one @ 10500sf right next to each other. All my builds in the past have been PEMB. All metal panels, etc etc. Typical warehouse PEMB. 

The particular city I am building in has required me to do 3 sided brick full elevation. I am thinking of doing my regular PEMB and adding a brick veneer, but not sure. I think the brick veneer might cheapen the look. I could do a PEMB structure with metal studs all the way to the roof deck and then do a traditional brick lay. Or maybe CMU’s?

Not really sure. I am wondering if anyone else on here has any input. 

Can’t tell you how important it is to have your subs go ahead and purchase items as son as you get a permit if you are building. I have my electrical and hvac guys buy everything as soon as possible once i get my grading permit. 

this may be a stupid question, but is there any way to take out equity in a commercial property without doing a refi?

I developed the land, built a warehouse, leased it up with a 5 year tenant, and currently have an NOI of 234k annually. My cost basis is at 2.1 mil and at a conservative cap rate for my area would be a 6.7%. Therefore, I have close to 1.4 of equity in the property. I have a great rate of 3.95% with the bank that wont mature for another 5 years or so.

Is there any way to get the equity out of the property without doing a refi? I am assuming I would lose the great loan rate and go up to 6.5%, likely more. I really dont want to sell the building, but it would be nice to get the equity out to built my portfolio. Suggestions??

@Douglas Gratz Draws will never be as expected. I can assure you that. And you had better be on the same page with your bank/draw inspector. If its anything like commercial builds, the bank will want to see product on site and work performed. You will see what I am talking about when you get started. You had better have a good amount of cash on hand to prepay a lot of those costs out of your own pocket before you can get money back from the draw. And be aware that every time you call a draw the bank will hit you with an inspection fee. 

@Ronald Rohde roughly how much are you renting out the yard space? How long is the lease term? I would think you would want to keep the lease on a shorter term in order to keep the options open for a potential buyer. If you had a buyer that would want to go vertical, but the property had a land lease set for lets say 5 years, I would think that would not attract buyers.