3L’s ultimate goal of converting historic and vintage buildings into predominantly residential space is the key to unlocking previously untapped value in heavily sought after city-centers. By creating efficiently sized apartments at the price points a young workforce can afford, 3L strategically creates value in an underutilized urban landscape. These conversions multiply revenue, reclassify buildings under residential tax rates, generate a diversified revenue stream, and open up financing channels unavailable to non-residential projects.
The typical acquisition will be an older building of under 200,000 square feet, lying dormant or being used in a capacity short of its potential, and where the underlying zoning permits for residential use. While some of these buildings may have appreciated in the current market, these buildings are those where conversion to residential use will enhance value and cash flow earnings.
Some of the prospective redevelopment projects may have occupants who can remain in the building during construction, providing a steady cash flow while the construction projects are geared up and permitted. Downtown locations offer ground floor retail potential and other mixed-use opportunities that include new loft-office spaces that many of today’s start-ups desire.