Creating a new condominium facility can be a complex process. New housing developments often begin with the acquisition of vacant land. However, vacant, unimproved acreage is at a premium across New Hampshire, especially near major metropolitan areas.
Developers looking to establish new condominium facilities may want to consider modifying existing structures instead of focusing solely on the acquisition of unimproved land. Converting an office building to a residential facility can be an option, but there are certain challenges inherent in the process.
What issues do developers face?
When converting an existing structure from a business facility to a residential property, there are many challenges ahead. First and foremost, the zoning for the property likely does not align with the intended residential use. Securing a variance or rezoning the property may be necessary before any development occurs.
Next, developers must ensure that the infrastructure within the building aligns with code requirements for residential properties. A higher density of outlets per square foot may be necessary. The condominium developer may need to install new HVAC systems or include heating and cooling costs in condominium fees.
Then there are egress and accessibility concerns to address. There are countless minor challenges that can delay condominium development projects or diminish the profit margins for the developing business.
Support from the earliest stages of redevelopment of an existing facility can be as important as proper support before purchasing unimproved land for development. Companies need help with due diligence, zoning issues and ensuring the property can meet the relevant code requirements. Partnering with a law firm that has experienced handling condominium development and code compliance can increase the chances of a successful project.