All Forum Posts by: Syed Lateef

We have just contracted a architect to create Plans. He will be building plans and I would like to go to corporate establishments like Subway, Starbucks, Dunkin Donuts, Bank of America, etc to let them know we will build our store fronts to fit their requirements.

What steps do you recommend I should to get these kind of tenants. Are you guys aware of commercial real estate agents in Chicago land area to help with this process to get these type of tenants.

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Hello all,

Its been a few years since I posted about this. Since then we haven't had much movement on the vacant land until recently. I will create a brand new post with my questions because this post has got lengthy

We gave the contract to an architect to build plans to construct a building with 6 store fronts.

I will create a new post

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Originally posted by Karen M.:

Syed Lateef In looking at the picture on Google Earth (hopefully it's current) I see that it is an older area, with mostly old buildings. However; with the traffic on the road and foot traffic visible on the picture, it does look like it's a very active area. I also see that the Convention Center down the street seems to be a building that was remodeled and showing that parts of the neighborhood are improving. Also, there's a Bank of America down the street.

Yes your assumptions are correct.

It looks like the zoning in the area is for retail, office, restaurants. It also appears that there are some buildings with residential on the 2nd story, is there? Has anyone ever done any live/work type units in that area? Maybe condo type units with business below, live above, you could even hold those and not sell, etc.

Yes, you are correct about the zoning. Yes, there are residential on the 2nd story of most buildings in the area.

Yes, people have done live/work condo/business type units but they defaulted on those properties due to 2008 crises. Now there's an excess amount of empty condo units and empty stores in the area. Although these properties are about a mile away from my location. There are almost no empty stores near my piece of land.

Here is a little background of the property. In 2007 one of the restaurants caught on fire and burned down the whole building. I was about 19 years old. My father then needed to develop another property. His initial plan was to develop store fronts with offices and condo units above (Just like everyone else was doing in Chicago). He hired an architect and civil engineers and etc to come up with plans for the development. After completing all the plans the financial crises struck. No banks would provide credit to develop the property. So those plans went to waste. Since then we have been just sitting on the empty piece of land. Now i am 25 years old with more experience. I start my new job in December as a financial analyst and I have some time until then so i thought of helping my dad see if there is anything i can do to get the ball rolling.

Thanks for taking your time and helping me out Karen. It is appreciated.

Once I have a little more info, I can help you out more. As I said, take one step at a time. There's also the possibility of when you narrow down the project of putting up a sign and pre-leasing the building and doing it as a build to suit, etc. There's a lot of possibilities. Let me know what you find out.

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Originally posted by Karen M.:

Syed Lateef As Joel mentioned, for a Walgreens or similar store, it takes a parcel of 1-2 acres, and usually prefer a corner lot. Some companies own their buildings, therefore; they buy the land and do everything needed to develop it, others lease the store from the land owner, in which case the land owner develops the property out, and leases the completed building to the tenant.

An issue with us developing the land is financing such a big project. Banks since 2007 are not willing to take on that much risk. Another reason why i was asking about retail stores like walgreens etc is because I would think banks would be more inclinded to provide financing to these type of developments because it is almost garunteed that these tenants will pay the rent. Thus reducing the banks risk for the owner to default on the loan. Please let me know if my thought process is correct

Take things one step at a time. First, figure out what is the highest and best use for the land?

From my understanding there are two options. First option is to develop a property and rent it out. Second option is to sell the vacant piece of land.

What is the value of the land as it is? If values are high enough in the area, would it make sense to tear down the building you own next door and include it in a new development?

I will have to contact a agent to know the value of the vacant piece of land and the building we own adjacent to the land. I am not sure if it makes sense financialy, to tear down the building we own and include it in the development, because we are receiving steady cash flow from that property.

(It appears to be an older building) How big is that lot?

Yes it is an older building. Many buildings in chicago are old. I believe the lot is about the same size as the vacant piece of land. I will have to find out and get back to you.

Find a commercial agent that works the area, and get them to look at it and give you their opinion. Don't commit to doing anything. An agent will gladly do that, hoping to get the opportunity to list the land should you sell, or get the lisitng on the space to lease should you go that route.

Thank you i will look into commercial agents in my area to see what my options are.

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Joel,

Thanks for your respone.

"When I market a property for a client I put s package together and submit a package directly to the regional director for their real estate development department."

Can you tell me what type information you include when you submit a package?

"I start with the corporate companies who pay the most for a site and work my way down. I also call each company to get insight on the package submitted and the site to report info back to the owner. The companies have a list of certain developers and construction companies they use."

When you mention that you "start with the corporate companies who pay the most for the site" that means the company pays for the for the development of their property? For example, Walgreens would pay for the construction to build their facility?

Thanks,

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@Joel

I belive the area is dense urban area. There are similar retail properties near by. There is a very old CVS pharmecy about half a mile away. Maybe a possibility for them to develope a newer version on my land.

I am just brain storming ideas and possibilities.

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@Karen M.
Thank you very much for your help. See my responses below.

-What are the adjoining buildings like?
You are correct the buildings on the left and right are small businesses. My family also owns the building on the left.

-Is the area an active area or ?
Yes, the location is a very active area in chicago. It is about 15 minutes from downtown chicago and Loyola University. Recently they developed a new walgreens and a new chase bank half a mile away. That is why i mentioned those two retail locations.

-Is your plan to develop the parcel, lease the building and hold or ?
Yes that would be the ideal plan. To have a long term steady stream of income. What is also important is financing of the development. My previous question was does the retail store help with financing the property to their specifications? Or does the owner of the land pay for the buildings development?

-Maybe you can send me the address of the parcel, and I'll go on Google Earth and give you my opinion of what I think of the area.
Sure! The address of the land is 2501 W. Devon AVE Chicago, IL.

Thanks,
Nimmy

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I am new to real estate. My background is Finance from DePaul University.

My family owns a vacant lot the chicago land chicago area. The lot size is 100' x 125' (12,500 square feet).

We would like to know information on developing retail properties and lease it to companies like walgreens, cvs, or chase bank etc.

Below are few of my questions:
1. What is the best way to start my research on this subject?

2. Are their consultants or companies that specialize in this? If so what are some firms that do this?

3. I understand these retail properties have very specific specs for the construction. Who is responsible for the financing of the construction of these retail comapnies?

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All Forum Posts by: Syed Lateef

Syed Lateef has started 22 posts and replied 188 times.

Post: Chicago, Rogers Park Vacant Lot Development

Post: Vacant lot retail investment development

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