Day 1 - Being Flexible

Commercial real estate is only as valuable as the end user is willing and able to pay per square foot. Therefore having the ability to transform a property’s use gives the owner/investor lower risk due to the larger pool of prospective tenants. Dr. Forgey charged our class with finding an affordable property that could potentially be used for as retail, small office or residential space. In addition to this the property must have garage doors. These original glass doors will be removed and replaced with modern glass garage doors which will create not only natural light but also a very appealing look. See http://www.glassgaragedoors.com/ to view additional unique styles. 






We should strive to be sustainable as possible and opting to use concrete floors, walls, if present and leaving any non threatening duct work exposed, while maximizing the rooftops. I will be working with classmates Jason Glater an experienced mortgage banker and Jerod Mund, a Sperry Van Ness commercial real estate broker. 

The ideal  property must be located in the Fort Worth's medical district near the Historic Fairmont neighborhood or West 7th in Fort Worth. Both areas have consistent rising property values. Although Dr. Forgey showed us some examples such as 558 Hemphill and 701 Pennslyvania locating an afordably priced property proves to be somewhat of a challenge. We will have to find financing for the project exploring all sources including City of Fort Worth initiatives, conventional programs, and HUD programs. Any environmental issues, zoning limitations will be addressed with the proper city departments. This project will be very detailed all renovations, construction costs, and reused materials, are to be throughly explained in the presentation. We will also use current true rental rates for retail as well as residential properties such as htttpwww.oldbuilding.com

Jason, Jerod, and I looked at several properties. Some where too big or so old their foundations were sliding. No amount of bolts or puddy could keep them from declining. One buildings 2nd floor was so thin we thought there was a chance we would fall through. Other properties layout did not meet the specifications the instructor wanted. We would have ideally wanted to retrofit 801 S. Main. The building was across the street from a boarding house and next door to an auto shop. It was very old and boarded up. We assumed we could get a great deal from the owner as the property appeared to be somewhat abandoned. When we approached Dr. Forgey with our potential diamond in the rough he informed us that he was very familiar with the property having personally toured its interior. Dr. Forgey told us that the remediation costs would be far to great.

The Fairmont/Near South Side area has strict historic guidelines that can drive up the price on certain properties. In this area however is a blend of older renovated historic properties and new townhouses. Some buildings have been purchased for specific end users who want the area and the property types. However these buyers and or builders may not all have specific ROI's they are after.