Rethinking Adaptive Reuse Projects

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What is an Adaptive Reuse Project?

Adaptive reuse projects is the process of taking old buildings or sites, and reusing them for a purpose other than it was designed.

When considering Adaptive reuse projects it’s important to understand if these investments make sense?

Analyzing the practicality of a property is crucial to determine the viability of all real estate investments. The feasibility process has to be more intensive for adaptive reuse because of the stand out difficulties of repurposing an existing property. Considerations like…

  • Demographics
  • Location: Analyze the accessibility and constructibility for the end game
  • Zoning: Whether general or specific plans govern uses and zoning of the property
  • Structure: Study the existing foundation and condition… electrical and plumbing, mechanical and life-safety
  • Community Needs: Stakeholders must consider if a community will buy into the project, namely, if support from local groups and community leaders will be a positive. Along with considering if the project will have backing from local planning commission, city council, or architectural review board.

Trip down Memory Lane

What we mean by this is to look back to learn from the past. Are there any unsolvable issues that were already faced. Are there boundary or easement challenges, historical preservation ordinances, or even legacy environmental issues?

Something to reminisce on for industrial properties… is there a free and clear use for construction and zoning approval? Industrial use challenges are more complex in regards to environmental remediation and these challenges affect both regional and national markets and local.

Thanks so much for reading! If you need consulting for Phase I Environmental Site Assessments, Phase II Subsurface Investigations, Property Condition Assessments, or any Commercial Real Estate transactions of any kind, feel free to ask for a quote today.

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Commercial and Multifamily Originations Set a Record by Rising to New Levels

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In 2018 Multifamily and Commercial mortgage bankers closed a record $573.9 billion of loans, as stated by MBA’s 2018 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.

And all of these factors below combined led to an eight percent increase in recorded Multifamily Lending compared to last year.

  • Growing property values
  • Low interest rates
  • Solid fundamentals
  • Strong appetites from both lenders and borrowers

Let’s Break Down the Numbers

  1. Commercial Bank portfolios led the capital source with responsibility of $174 billion loans.
  2. Then GSEs, Government Sponsored Enterprises; Freddie Mac and Fannie Mae witnessed the second highest amount of $142.3 billion.
  3. Followed by Life Insurance companies and pension funds, Commercial Mortgage-Backed Securities (CMBS) issuers, investment funds, Real Estate Investment Trust (REITS), and mortgage REITS.

In terms of Property Types…

  • Multifamily Properties at $266.4 billion had the highest of mortgage bankers’ origination volume.
  • Followed by retail properties, industrial, health care, office buildings, and hotel/motel.

“First liens accounted for 96 percent of the total dollar volume closed. The reported dollar volume of commercial and multifamily mortgages closed last year was eight percent higher than the volume reported in 2017. Among repeat participants in the survey, the dollar volume of closed loans increased by four percent.”

Jamie Woodwell Vice President, Mortgage Bankers Association

With loan originations on the rise, the need for site assessments has never been more important. UES Consulting and our team of inspectors are well-versed in the demands of commercial and multi-family transactions and how thorough, time-sensitive Phase I Environmental Site Assessments and Property Condition Assessments can help the process run smoothly and close on time. If you are looking for a company to partner with on your Commercial Real Estate transactions of any kind, turn to our in-house engineers and environmental consultants to alleviate the burden of environmental issues and mitigate risks. 

 

Information by MBA, Click here to purchase the complete report.

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