Summary: Uncovering all site circumstances can help determine if a project will be a gold mine or a black hole. How? Here are five tips.
Although going the commercial redevelopment route has several benefits, you must first decide if it is the correct situation. If you choose the wrong redevelopment project, you could have nothing but a money pit.
Discovering all site conditions is a crucial step in being proactive in determining if a project will turn out to be a gold mine or just a black hole.
How? Here Are the Top Five Actions You Need To Perform
- A Topographical Alta Survey May Be Ordered
This kind of survey shows the topography’s existing features, property lines, and contour lines. Additionally, it identifies all restrictions, easements, and documented objects pertaining to a property’s title. Because you need to know precisely where and what you can or can’t redevelop on the property, this is a crucial first step. While demonstrating the best method the site should be developed, it must also satisfy the local zoning authority’ standards.
Advice: When land developed for one use is going to be utilized for another, it is very important to order this study.
- Review As-Built Drawings
These documents, which you may sometimes hear referred to as project record drawings, let you compare and contrast the original design with the final requirements.
Don’t ignore them because they serve as a blueprint for all the project’s modifications. Modifications, shop drawings, design adjustments, field alterations, etc., are a few instances of changes.
Advice: Request planning and permit records and approvals from the jurisdiction to analyze the property’s complete history.
- Perform A Detailed Geotechnical Analysis
The geotechnical investigation aims to examine the foundation and soil earthworks of the property and reveal any repairs required owing to damage brought on by subsurface conditions.
To delve deeper, this soil analysis looks at the building’s footprint, the extent of the land it will be built on, its slope, how close it is to water (groundwater, lakes, streams, and rivers), and its geographic position.
Advice: Your lender will likely want to request a geotechnical report even if there are no visible signs of soil-related distress, if the property is in a geologically hazardous area with a history of earthquakes, sinkholes, liquefaction, landslides, volcanoes, etc., or if the geotechnical report is older than five years.
- Demand Environmental Evaluations
Phase I environmental analysis is crucial for both new construction and renovation. It entails conducting a visual and historical inspection to find any potential present-day or historical environmental problems.
The conclusions of this study might even be able to restrict how you intend to use it. Check out our blog post for more information on why it’s important to purchase ESAs before diving too far into your project.
Advice: Recall that another advantage of an ESA is that it will keep you informed about the most recent laws that may one day impact the site.
- Collaborate With A Professional Developer
Hiring a seasoned commercial real estate developer could reduce your danger of being caught off guard and possibly assist you in avoiding being surprised during your remodeling.
In addition to avoiding worst-case scenarios, working with a partner with expertise in the redevelopment will assure beneficial connections, such as with qualified site civil and surveying consultants.
Advice: To decide whether working with a developer might be advantageous in your situation, ask yourself these precise questions.
Even if you constantly attempt to be as prepared as possible, problems could still arise during your redevelopment project. However, the advice given above will provide you with the most power possible when it comes to forewarning of hidden site circumstances.
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