Current condition of property:
This structure has a successful hardware store business on the ground floor. The current tenant would like to stay in this space, even if the building is sold. The second floor has rented apartments that are in need of significant updating (plumbing, electrical, heating/air conditioning, wall repair and paint, new kitchens). The third floor is rented only as storage space at the current time.Project potential:
Market value of this property as is: $595,000
Size of each floor: 35x75ft.
Current income of the ground floor ($18/sq.ft./year)
Current income of 2nd floor ($10/sq.ft./year)
Current income of 3rd floor ($4/sq.ft./year)
If the building had a full rehab:
Cost to rehab ground floor ($110/sq.ft.)
Cost to rehab 2nd floor ($70/sq.ft.)
Cost to rehab 3rd floor as office space ($100/sq.ft.)
Cost to rehab 3rd floor as apartments ($145/sq.ft.)
Potential income of the ground floor as store ($23/sq.ft./year)
Potential income of the 2nd floor as apartments ($1,300/apt./month)
Potential income of the 3rd floor as 3 apartments ($1,200/apt./month)
Potential income of the 3rd floor as offices ($18/sq.ft./year)
(For other possibilities, see banker.)
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