Selecting a building may appear unnecessary in a landlord or tenant managed conversion. However, they should examine a building's location and find features just as a developer would to ensure that it's suitable for conversion. The following six elements are typically considered in selecting a building:

1. Location.

An appropriate location is one with access to public transportation, business districts, and shopping. Buildings situated in a historic part of the city or in a neighborhood with special ambience are also desirable for conversion. This feature is so important to some developers that they will choose poor-quality buildings if they offer superior locations.

2. Quality of construction.

The conversion manager, engineers, or architects usually make a preliminary inspection of a building to determine if it's sound enough to be converted. If the building is judged suitable, detailed architectural and engineering studies are made of its structural and mechanical elements. Problems discovered in these examinations may eliminate a building from consideration, particularly if the conversion manager plans a rapid, in-expensive conversion process.

3. Number of bedrooms and size of rooms.

The importance of this feature varies with the market. In areas where professionals comprise a major market share, buildings with a high proportion of one-bedroom and efficiency units will sell rapidly. Units with two bedrooms or more are popular in the suburban and retirement communities because buyers have larger households or want extra space for guests or for hobby rooms. Smaller rooms are acceptable if other features¡ªprincipally location¡ªare outstanding. In other cases, large rooms may be a strong selling point.

4. Age of building.

Buildings less than 20 years old are favored for conversion because appliances, mechanical systems, and structural components are more likely to be in good condition. However, older buildings are selected if they have been well maintained and if regular repairs and renovations have been made by the landlord. These buildings may also have more favorable locations, be better constructed, or have more architectural appeal than new buildings.

5. Amenities.

Again, the particular market determines the importance of features such as swimming pools, party rooms, putting greens, health spas, and saunas. Marketing campaigns are often built around such amenities.

6. Remodeling costs.

Conversion managers carefully consider the ex-tent of rehabilitation needed so that the sale prices of units won't be prohibitive to their intended purchasers. Developers who specialize in major rehabilitations may choose buildings that other converters would reject. They often select small, vacant, abandoned, or dilapidated buildings that can be bought cheaply. However, developers ensure that the buildings or their neighborhood offer some distinctive feature that will justify the expensive renovation. Many buildings chosen for conversion need only minor rehabilitation. Usually, sub-contracting firms under the direction of a general contractor carry out the renovation. Interior and exterior designers sometimes create a more homelike atmosphere by placing furniture, plants, and colorful paintings in lobbies and patio furniture around swimming pool areas. In garden-style and townhouse complexes, exterior work sometimes includes minor architectural changes, such as varied doorways, to give each unit an individualized appearance. Although renovation is an important part of the conversion process, purchasers are sometimes given the option of having little renovation done to reduce the unit's selling price. The exterior is refurbished, but individual units are re-paired only to meet local building code standards. Purchasers decide what improvements they want and pay accordingly. The speed and care with which rehabilitation is done is important to conversion managers, to tenants (whether buying or moving), and to outside purchasers. If rehabilitation is accomplished rapidly and well, units can be sold sooner, thus reducing the carrying cost of any interim financing.

 

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