All Forum Posts by: Mathuw Chandler

Hello all,

I am planning to purchase a mixed use building zoned neighborhood commercial. In the Good Ol Days there was retail on bottom and an apartment on top, the bottom has since been converted to living space. The top currently rents for 550$ month, and could easily rent for more with little cosmetic updated/ changes/. For the bottom as of now i plan to renovate it to be a two bedroom one bath apartment to live in. The bottom was gutted by the person who is selling it. I would like opinions on if i should finish the space and occupy it, or lease the bottom to a retail/office tennant, and occupy the top unit. and what are the best ways to attract commercial/office tennants?

The building is in a dense up and coming neighborhood in South Stlouis, a place where small businesses thrive. The space is about 1,000 SQFT. on each floor.

@Cooper Mitchell I just graduated from MSU last semester (fall 2013). If you are able to i would like to suggest taking some planning courses in the community and regional planning. the classes will be very helpful, at least i believe so. You will learn a lot about the political side of what happens in cities, and planners have good information for investing in cities. I am interested in investing in the springfield area.

John Holdman has offered a great explanation for this situation. To obtain a variance you must go though the P&Z commission, which also allows input from local steakholders, residents, business owners etc.. When it comes to your zoning issues, every city is different you should talk to a planner they can help you out. i have not researched the zoning of your city but their codes will tell you how many floors you can have and changing zoning may allow you to add additional floors.

As far as the FAR and addition of floors, there is the ability to obtain a transfer of developmental air rights from other developers. When developers are able to build additional floors on their property but choose not to or are restricted by reasons such as historic preservation, they are able to sell those developmental rights to other developers.

I am interested in reusing old/historic buildings in my city to create mixed use developments, retail/commercial on bottom & lofts on top. I would like some advice from anyone who could help.

1) where/how is the best way or website to find potential properties? How would you go about this, who would you talk to?

2) Is this a profitable way to invest, as I see it the income coming from both retail and residential.

3) if anyone has any experience, is this a tough investment to make? could you offer any advice?

4) how would you go about this as a first time investor? i am looking in to older historic buildings which i can create one or two lofts from and potential commercial use on bottom.

I would like to add, that I am educated as a city planner, and one of my main motives is to help create more walkable/vibrant communities, while profit is a reason i am more interested in creating great communities. I am not educated in real estate but believe that my education can be a positive as a real estate developer.