From major metropolitan areas to small town across the United States, commercial real estate investors are finding lucrative opportunities with adaptive re-use properties. In broad terms, adaptive re-use is when a structure that once served a specific purpose is overhauled and transformed into something new, while still retaining the features and history of the original building. For example, in some cities you will see old factories and textile mills turned into upscale apartments; small train stations from the early 1900s converted into restaurants and breweries, and so on. Instead of letting these buildings fall into disrepair or demolition, commercial real estate investors are breathing new life into them and generating revenue in the process.
Researching Adaptive Re-Use Properties
Every adaptive re-use project starts with research. In addition to looking up the original purpose of the structure, commercial real estate investors need to find out how those older properties are currently zoned, and if special permits are required to start an adaptive re-use project. Additionally, there may be incentives to renovate older buildings at the local or state level.
Remember that adaptive re-use properties are not only updated with the latest amenities, but they also honor the history of the original structure. Talk to people in town and ask them if they have any memories or stories to share about the property you want to renovate. Try to get pictures or period-appropriate fixtures to incorporate into your overall aesthetic so that the property is attractive to not only new inhabitants, but also respectful of the memories of local people.
Financing for Adaptive Re-Use Properties
Since every adaptive re-use project is unique, commercial real estate investors need financing solutions that are tailored to their needs. At The Capital Rams, we specialize in commercial real estate financing for adaptive re-use projects. Whether you need conventional loans, bridge financing, mezzanine loans for larger projects, or something else, our team will work with you to create a solution that’s scaled to the scope of your project. Contact The Capital Rams today to learn more about our financing options for adaptive re-use projects.