The value of a name. I'm having one heckuva a week with property discussions. On one day it's smooth sailing. The next the deal has fallen through. The next I have a major investor who wants to jump in. Then today I got this message (edited for confidentiality):
Quote
From Rob: "Share with (Landlord's management team) that we are currently in the process of wrangling investors, and are not currently prepared to put that much money into the property. Should something change on our end or their's we would love to continue the discussion."------------------------(Landlord's rep): (Property owner) told us in the meeting at his office that he'd make this deal happen. Can't imagine $45k in TI (tenant improvement) Allowance will separate us from getting a deal done of this magnitude. The property has sat vacant for a while and needs a ton of work. This capital will be invested in permanent improvements to the building that will be re-utilized in the future.Rob will be a catalyst to revitalizing the neighborhood. Point being, this is not some random guy that decides out of the blue to open a restaurant or bar that will have a 5-10 percent chance of making it. And Rob's addition to (the neighborhood) will lead to further redevelopment of the area which could drastically increase property values, especially (Landlord's) building at the main and main intersection. This increase in value will be a lot more than $45k.Perhaps a discussion with the Alderman can open up some doors to some subsidy $ like property tax abatement or CID or the like that could help pay (Property owner) back quicker to get him comfortable with coming out of pocket another $45k.
Well, to say this was fun to read would be an understatement. I have been thinking about what it would mean to open in this particular neighborhood, and how it will put this area on the map for a new vision than what it currently is - and developed in a classier way than say a sports bar or pizza joint. Tyler and I have been very cognizant of not gentrifying a neighborhood, nor colonializing one. We want to be a natural fit that would improve, but not shift courses, for a neighborhood, and it's a big part of why we have been looking at this particular location despite the building needing "a ton of work."
