Real Estate Topics Forum :: View topic - Advice on Small Condo Development Project

DeMark

I have 7000 square feet available (air rights) to build residential units on top of a small strip centre. This is my first development project and I am wondering if someone could offer some insight in terms of the typical process. Zoning is in place but I am unclear as to the next steps in the process i.e. forming an association, how maintenace/taxes are determined and distributed, whether supplying appliances is standard. I believe the best course is modular construction but I still have concerns in terms of distrupting retail tenants below. Would that be a serious issue? My goal is to build and sell (not rent.) Any help at all would be very much appreciated.

nemmar · Site Admin

DeMark,

Each construction project has it's own set of details and criteria that make the project unique so there's no standard answer to your questions that are relevant nationwide. For starters the following are all important factors that must be analyzed before you begin your construction:
1 - Your local building codes and requirements for the construction.
2 - The details of the air rights and what restrictions you have by local laws and in the contract due to the retail space and tenants below your project. If you do disrupt the retail tenants below then you'll have a big problem on your hands if they take legal action to halt the project or delay it due to litigation.
3 - Local laws dealing with condominiums and associations.
4 - Is modular construction acceptable to the local building department and to potential tenants and buyers for the finished condos. Also, the standards for appliances will depend on this same factors.

All of these factors and more need to be thoroughly considered and evaluated. Even if you're a top quality builder from a different area, you will still have to adjust your construction project and plans for the exact local area when you have the air rights to build your condos. You must also take into account the local market conditions and what the typical buyer expects to get when they purchase or rent a condo in that local area. You don't want to build condos and then find out that the style or construction is abnormal to that area. This would have a big negative impact on the appraised value of the finished condominiums.