How Hotel-to-Apartment Conversions Support the Affordable Housing Initiative

Posted on July 12, 2022 by bafcorp20

Hotel-to-apartment construction conversions are proving to be a viable adaptive reuse of vacant or distressed hotel properties. Continue below to learn how these hotel renovations support the affordable housing initiative, plus what you should consider if you wish to invest in a distressed asset conversion or build-out project as a real estate developer in Indiana.

Commercial Construction Conversion Indianapolis Indiana 317-253-0531

Affordable Housing With Hotel Conversion Construction

Why are hotel-to-housing conversions becoming such a widespread real estate endeavor among developers and investors? There are many reasons, but they all boil down to one key benefit: an increase in affordable housing opportunities. Hotels, motels, and extended-stay establishments were once the height of American recreational and vocational travel, but today, especially due to the effects of the Covid-19 pandemic and the gaining popularity of Airbnb, many have struggled to maintain adequate occupancy, while several others have closed their doors entirely.

Benefits of Hotel-to-Apartment Conversions

In response to the rising demand and falling supply of affordable housing, many real estate groups have acquired distressed or closed hotels, motels, and extended stay suite centers for the purpose of renovating them into a multi-family residential housing development. Such housing initiatives have proven to deliver successful outcomes for both investors and tenants, alike. Accordingly, the adaptive reuse of hotels for apartments serves to be an excellent, long-term solution for the affordable housing problem in our country.

For developers and real estate groups, the benefits of hotel-to-apartment conversions are equally attractive. Hotels are strategically built in efficacious locations, making them prime real estate at their foundation; something investors should easily capitalize on. Generally located near amenities like retail, gas, and interstates, hotels are a viable and practical place for residents to take up long-term occupancy. In fact, such locations are so valuable that many people cannot afford to live there otherwise. With affordable housing conversions, tenants are able to live in a better, safer, more established community, but at a price that is economically-equivalent to or compatible with their incomes.

Then there is the point of price breaks. Hotels, especially extended stay establishments that are equipped with in-room kitchens and kitchenettes, are already built, making it much cheaper to convert a property into individual apartments or condominiums. Hotel conversions can also be applied to senior living and nursing home centers, office suites, student housing, and more.

Factors to Consider

Adaptive reuse conversions and similar opportunities come with some important considerations. First, not all hotels and motels are fit for conversion. Additionally, there will likely be local zoning, permitting, and building codes that must be upheld in specific detail, which can put up a lot of red tape around your project. But with the right construction professionals in your corner, you can appease all factors and related concerns with optimized solutions.

For these reasons and many more, it helps to consult with an esteemed and experienced commercial construction management company for personalized advice on your project goals and overall business objectives. They have the knowledge and resources to deliver the guidance and facts you need to be the most successful with your distressed property acquisition or conversion.

Are you looking for a trusted commercial general contracting company that can deliver outstanding results for your real estate conversion or new build project in Indiana? Contact BAF Corporation at 317-253-0531 for reputable commercial construction conversions in Indianapolis and its surrounding counties.

How to Minimize the Costs of Owning a Distressed Commercial Property

Posted on March 31, 2022 by bafcorp20

Are you a real estate developer who recently purchased a foreclosed or condemned property? Maybe you’re a real estate investor who has been sweating a stalled commercial construction project? Or perhaps you are a bank owner who has a distressed commercial property on the balance sheets? Either way, the expenses associated with owning and maintaining a real estate-owned (REO) distressed commercial asset can be draining to your bottom line. If you feel like you are hemorrhaging money by owning a foreclosed or deteriorating commercial property, it is time to take action and turn your asset into a moneymaker.

Continue reading to learn 2 effective ways to minimize the various costs of owning a distressed commercial property, plus how to find professional commercial construction company specializing in remodeling and renovation for distressed assets.

Indianapolis Commercial Renovations 317-253-0531

Effectively Managing a Distressed Commercial Property Starts With the Right Help

The two most effective ways to minimize the cost of owning and maintaining a distressed commercial property or asset are: 1) Hire a skilled commercial general contracting company, and 2) Be sure they provide specific services and solutions for real estate-owned (REO) construction.

Without proper planning and preparation, your distressed commercial asset will continue to bleed your bank account dry. It is critical to the overall success of revamping a distressed property to choose a qualified Central Indiana commercial construction company for the job. A licensed and experienced commercial general contractor who specializes in real estate-owned (REO) commercial distressed asset construction and renovation can help you come up with a viable plan that abates further deterioration and sets in motion a system of rebuilding a profitable asset.

What You Should Expect From Your Commercial General Contractor

After finding a qualified and experienced commercial general contracting company in central Indiana to provide your REO commercial distressed asset remodeling and renovation work, it is important that you confirm the services and solutions they are prepared to offer you during the process. In order to effectively turnaround a commercial distressed asset or property, your commercial general contractor should be able to provide the following services and solutions:

► Budget Analysis and Cost Foreseeability Evaluations

Your contractor be able to uncover discrepancies in terms of how much work has been done and how much was paid to previous contractors and subcontractors who did the. Additionally, they should be able to perform accurate cost foreseeability evaluations for all future renovation work, procurement, and post-facility maintenance plans.

► Commercial Construction Management

In addition to providing proper budget analysis and cost foreseeability evaluations, your commercial general contractor should be able to act as your single point of contact for all future projects. They should be able to organize a streamlined system to communicate with all vendors, subcontractors, and procurement companies, including the title company, on your behalf.

► Space Planning and Permitting

When renovating, remodeling, or, knocking down a distressed commercial asset, it is important to ensure that all work is performed in accordance with all local and state regulations, as well as all building code and jurisdictional requirements. Be sure your commercial construction general contractor can work with the proper jurisdictional authorities to provide comprehensive space planning and permitting services on your behalf.

Are you looking for a qualified commercial general contracting team that can transform a commercial distressed asset or real estate development project in Indiana? Contact BAF Corporation at 317-253-0531 for comprehensive commercial construction services in Indianapolis and its surrounding counties.

What to Consider Before Buying a Distressed Commercial Asset

Posted on October 9, 2020 by bafcorp20

In today’s economic condition, the real estate market might look pretty good to perusing proprietors. And foreclosed homes are not the only listings being picked over quickly. Right now, there are several real estate-owned (REO) distressed commercial assets on the market that are listed well below market average as a result of this year’s economic unknowns. A distressed commercial asset might be a foreclosed or condemned commercial property, or even a stalled commercial project that never got the funding needed to reach completion.

Either way, as a serious proprietor, it is important to look beyond the marveling price tag of an REO distressed commercial asset before moving forward with the procurement process.

Commercial General Contracting Preconstruction Services for Central Indiana 317-253-0531

REO Commercial Preconstruction Services are Essential

Several Indiana restaurants, retail stores, hotels, multi-story resident housing, and more, have all been left unfinished, condemned, or otherwise shutdown, due to economic downfalls and similar setbacks. So right now, there are a large number of REO commercial properties listed for a very cheap price. But that does not mean you should just jump right into a buying deal.

Before buying a stalled commercial project or distressed asset that you wish to bring back to life, you need to hire a commercial general contractor who specializes in Central Indiana preconstruction services. They have the experience, acumen, and resources to determine whether or not the cost of the property, plus the cost of the needed construction, makes sense for your overall business objectives and monetary goals.

Further Considerations to Add to Your List

You will need to collaborate with your chosen Indianapolis commercial general contracting team to pinpoint specific elements of the prospective property or asset. Here are some questions to go over:

What was the original intention or building plan for the property by the previous proprietor or developer? Do you have access to the original architectural drawings or blueprints?

How far along is the project? Is it far enough done that it makes sense to complete it? Or is it in early enough stages that a new plan can take its place?

Does the property come with any owed construction costs, such as building code extension penalties or subcontractor liens?

Are there previous subcontractors that worked on the property and know it well-enough to be an asset to your current team?

How secure is the property? Is it safe? Are there electrical concerns or utility issues? Wild water? Frozen pipes or valves?

Is the REO commercial landlord the same one as before? Is all paperwork intact? Is everything paid to date?

Will the municipality permit construction on a stalled or distressed commercial project? Are there fees and costs to be paid? Jurisdiction red tape? Will building permits need to be updated or acquired?

Who Will I Hire for Superior Commercial Preconstruction Service in Indianapolis, Indiana?

Contact BAF Corporation at 317-253-0531 for trusted office and preconstruction services in Indianapolis, Indiana and its surrounding locations. Why choose the esteemed and accomplished commercial general contractors at BAF? Our unique and concentrated approach to commercial preconstruction service safeguards your project’s end result, which ultimately protects your investment and enhances your business’s overall value and function. Call our office today to discuss your commercial construction needs, today. We serve corporate, commercial, and industrial industries in Indianapolis, and throughout Central Indiana. Request free information or to schedule a consultation, anytime.