Thoughts on Converted Multi-Residential Church Building ?
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[{"id": "gk2hsku", "text": "Adaptive reuse is my favorite CRE property type, so yeah, I\u2019d be very interested.", "replies": [{"id": "gk2ia8p", "text": "But how would your analysis change versus a normal Multi-family building ?", "replies": [{"id": "gk2pbuy", "text": "So a Property Condition Assessment (also called a Capital Needs Assessment) completed by an unbiased third party inspector is really important. You need to know your upcoming challenges with future repairs and capital improvements. This may be why the seller wants to off load this property. Heritage properties can be a huge pain and money pit. \n\nAs far as renting to students, this is usually the first or second pad they\u2019ve lived in besides the dorms and Mom\u2019s house, so it\u2019s better if you are local so you can address minor issues versus paying for a property manager or repair guy.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gk2i6eh", "text": "I\u2019m no expert and I don\u2019t know what it looks like but it sounds like it would actually \u201clook cool\u201d instead of being a normal building like everyone else.", "replies": [{"id": "gk2idt2", "text": "Yeah it certainly looks pretty cool. But since its going to be an investment property, I am trying to think of other things I am missing. It is a pretty large purchase.", "replies": [{"id": "gk2ijwy", "text": "How much is it\nAre you going to bring a contractor during the property tour?", "replies": [{"id": "gk2jfro", "text": "Yeah would certainly take a contractor/inspector on the walk through.   Due to privacy reasons, I will just say that its a multi-million dollar building. Around 15-20k sqft.", "replies": [{"id": "gk2k6hm", "text": "Oh that\u2019s more expensive than I thought", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gk2ipzp", "text": "Your biggest challenge will probably be getting insurance, and possibly a loan. I own an old school building that I turned into business offices and an event venue and it\u2019s worked out well.", "replies": [{"id": "gk2jc13", "text": "Yeah, it will certainly be conditional upon financing and insurance. The other worry is lack of interest during resale.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gk2leby", "text": "Someone in LA did this. They renovated the units to be really modern but kept the church features like the stained glass and statues of saints. Then they created an HOA and sold them off individually as condos. Looked like they did quite well.", "replies": [], "depth": 1}, {"id": "gk2ovoa", "text": "Someone in Provo, Utah did this as well. Super modern on the inside. I think it's a winner. On how to approach it? I'm sure you would treat it like a normal value-add.", "replies": [], "depth": 1}, {"id": "gk32yrl", "text": "I'm cautious of MF projects that were redeveloped \\~10 years ago. You're reaching an age where you might need to replace many systems and appliances in a short period of time, but the property might still look really nice/newish and be priced higher. It is just so hard to tell with newer systems, it could be a reputable brand but then all the control boards fail in years 10-12 etc. I'd rather buy something at rehab pricing where I know those expenses will come.\n\nAll that said, church redevelopments are neat and it could be a nice trophy-type property to own.", "replies": [], "depth": 1}]