Selecting a building may appear unnecessary in a landlord or
tenant managed conversion. However, they should examine a building's location
and find features just as a developer would to ensure that it's suitable for
conversion. The following six elements are typically considered in selecting a
building:
1. Location.
An appropriate location is one with access to public
transportation, business districts, and shopping. Buildings situated in a
historic part of the city or in a neighborhood with special ambience are also
desirable for conversion. This feature is so important to some developers that
they will choose poor-quality buildings if they offer superior locations.
2. Quality of construction.
The conversion manager, engineers, or architects usually
make a preliminary inspection of a building to determine if it's sound enough to
be converted. If the building is judged suitable, detailed architectural and
engineering studies are made of its structural and mechanical elements. Problems
discovered in these examinations may eliminate a building from consideration,
particularly if the conversion manager plans a rapid, in-expensive conversion
process.
3. Number of bedrooms and size of rooms.
The importance of this feature varies with the market. In
areas where professionals comprise a major market share, buildings with a high
proportion of one-bedroom and efficiency units will sell rapidly. Units with two
bedrooms or more are popular in the suburban and retirement communities because
buyers have larger households or want extra space for guests or for hobby rooms.
Smaller rooms are acceptable if other features¡ªprincipally location¡ªare
outstanding. In other cases, large rooms may be a strong selling point.
4. Age of building.
Buildings less than 20 years old are favored for
conversion because appliances, mechanical systems, and structural components are
more likely to be in good condition. However, older buildings are selected if
they have been well maintained and if regular repairs and renovations have been
made by the landlord. These buildings may also have more favorable locations, be
better constructed, or have more architectural appeal than new buildings.
5. Amenities.
Again, the particular market determines the importance of
features such as swimming pools, party rooms, putting greens, health spas, and
saunas. Marketing campaigns are often built around such amenities.
6. Remodeling costs.
Conversion managers carefully consider the ex-tent of
rehabilitation needed so that the sale prices of units won't be prohibitive to
their intended purchasers. Developers who specialize in major rehabilitations
may choose buildings that other converters would reject. They often select
small, vacant, abandoned, or dilapidated buildings that can be bought cheaply.
However, developers ensure that the buildings or their neighborhood offer some
distinctive feature that will justify the expensive renovation. Many
buildings
chosen for conversion need only minor rehabilitation. Usually, sub-contracting
firms under the direction of a general contractor carry out the renovation.
Interior and exterior designers sometimes create a more homelike atmosphere by
placing furniture, plants, and colorful paintings in lobbies and patio furniture
around swimming pool areas. In garden-style and townhouse complexes, exterior
work sometimes includes minor architectural changes, such as varied doorways, to
give each unit an individualized appearance. Although renovation is an important
part of the conversion process, purchasers are sometimes given the option of
having little renovation done to reduce the unit's selling price. The exterior
is refurbished, but individual units are re-paired only to meet local building
code standards. Purchasers decide what improvements they want and pay
accordingly. The speed and care with which rehabilitation is done is important
to conversion managers, to tenants (whether buying or moving), and to outside
purchasers. If rehabilitation is accomplished rapidly and well, units can be
sold sooner, thus reducing the carrying cost of any interim financing.
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