Working with historic buildings can quickly turn into a lesson in patience, persistence, and the importance of thorough planning.
During one project we faced a significant budget increase when restoring a historic property in Detroit. Originally, we had set aside $300k for window replacements, thinking it would cover the costs. But after six months of back-and-forth with the historical commission, our budget ballooned to $925k.
Why?
Because every single detail, from sightline profiles to the exact materials used, had to match the original specifications.
This experience was a reminder of how crucial it is to understand the unique challenges that come with historic renovations.
For young investors, here are a few key takeaways:
1?? Expect the Unexpected: When dealing with historic properties, always budget for more than you think you’ll need. Hidden costs and regulatory requirements can quickly add up, as I learned firsthand. Be prepared for surprises and have a financial cushion to absorb them.
2?? Do Your Homework: Before diving into a historic renovation, thoroughly research the regulations and requirements specific to the property. Understand what the historical commission expects and build those costs into your budget from the start. This due diligence can save you a lot of headaches down the road.
3?? Patience Is Key: Renovating a historic property is not a quick process. It requires patience and a commitment to preserving the character of the building. Embrace the journey, knowing that the end result will be something truly unique and valuable.
4?? Plan for Contingencies: Always have a contingency plan in place. We tried to do Juliet balconies and make exterior modifications but sometimes, the commission’s requirements can lead to significant changes in your original plans. Be flexible and ready to adapt.
5?? Focus on the Long-Term: While the upfront costs can be daunting, remember that a well-restored historic property can be a valuable asset in your portfolio. It’s an investment in preserving history, and with the right approach, it can pay off in the long run.
Renovating historic properties isn’t for the faint of heart, but for those willing to take on the challenge, it’s an opportunity to create something that stands the test of time. Just make sure you’re prepared for the journey and approach it with the right mindset!
#CommercialRealEstate #HistoricRenovation #InvestmentStrategy
Business and Marketing Development at Jupiter BPO
2 个月I have personal visited the Willis Tower. Back then when I visited it was referred to as the Sears Tower. A great piece of American architecture and engineering! ??