3 ms·

I think OPs point is that you could turn each floor into say three units that are 5,000 sq ft each, but sell each unit for only $300K ($100K for the space, $150

I think OPs point is that you could turn each floor into say three units that are 5,000 sq ft each, but sell each unit for only $300K ($100K for the space, $150K for the renovations, and $50K in profit). There are six toilets and eight sinks on the floor, so you know there is enough plumbing for that may. Each unit could have two toilets, each with a sink, plus a kitchen sink. A big storage area, and the rest up against the windows with the existing HVAC that would be for the whole floor, heating to 68 and cooling to 75. The point is at those prices, you could build a large home where most of the space is empty, sell it for the price of a small home, and everyone wins.

walrus01 2y ago
I think the real market value is not seen in the auction, as pointed out by the other commenters in this thread, the lender would bid up to $83m or $100m or whatever was the outstanding loan amount. There weren't any other legit bidders from 3rd parties who are not the lender bidding $15m or $20m on the building. So if you combine a market value more like $83m to $100m or more with the large amount of labor and materials and time needed to retrofit early-1980s-type office space into condos, the cost per unit could end up being quite a lot. The sort of real estate developers who renovate bare shell space into condos and lofts are probably going to go do the similar idea with an older warehouse/manufacturing building, as has been seen with some commercial-to-residential conversions in Houston in the past 15 years.
rob74 2y ago
There are also two "break rooms" on each floor near the emergency staircases, I assume those have some plumbing too? However, another interesting challenge will be to make sure that each apartment has access to both the elevators and the staircases...
gravescale 2y ago
Hell, if the area is really so cheap, you could even use every other floor for plant and run the plumbing through those levels to the risers. Then anything not used by the plumbing can be storage or other non-living space for the unit above. You could have a workshop in a skyscraper!

walrus01 2y ago

I think the real market value is not seen in the auction, as pointed out by the other commenters in this thread, the lender would bid up to $83m or $100m or whatever was the outstanding loan amount. There weren't any other legit bidders from 3rd parties who are not the lender bidding $15m or $20m on the building. So if you combine a market value more like $83m to $100m or more with the large amount of labor and materials and time needed to retrofit early-1980s-type office space into condos, the cost per unit could end up being quite a lot. The sort of real estate developers who renovate bare shell space into condos and lofts are probably going to go do the similar idea with an older warehouse/manufacturing building, as has been seen with some commercial-to-residential conversions in Houston in the past 15 years.

rob74 2y ago

There are also two "break rooms" on each floor near the emergency staircases, I assume those have some plumbing too? However, another interesting challenge will be to make sure that each apartment has access to both the elevators and the staircases...

gravescale 2y ago

Hell, if the area is really so cheap, you could even use every other floor for plant and run the plumbing through those levels to the risers. Then anything not used by the plumbing can be storage or other non-living space for the unit above. You could have a workshop in a skyscraper!