Maximizing Profits When Redeveloping BuildingsAnchin in the NewsFebruary 26, 2018
At the Anchin Construction & Development Forum, real estate experts shared tips on getting the highest return on investment when repurposing old buildings.
How do developers decide to buy and repurpose a building or demolish it and build from the ground up? Moderator Aaron Dussair, COO of Pembrooke & Ives, asked this question to speakers on the return on investment (ROI) redevelopment panel at Anchin’s Construction and Development Forum, earlier this month.
Jack and Lewis Rudin did everything on instinct, said John Gilbert, EVP and COO of Rudin Management. “Jack Rudin used to say you have more nerve endings in your stomach than you do in your brain. So, if you feel good about a deal and it feels right from an instinctual standpoint, do the deal. If you don’t, walk,” said Gilbert.
“Everything is about cost and ROI. If you can make it work, keep it. If you can’t, tear it down,” said Jim Hedden, senior managing director, development, Rose Associates. His company analyzes buildings with consultants and construction companies using 3D modeling to understand what they have and can make work.
Rose Associates evaluated the 11-story office building at 210 Livingston St. across from Macy’s in Brooklyn for at least a year, considering whether to build on top of it. Ultimately it was decided to tear down the former office that housed New York City’s Human Resources Administration. Rose Associates and Benenson Capital Partners co-developed the new, 25-story, 368-unit apartment high-rise.
Read the complete article on GlobeSt.com.