Abandoned Mixed-Use Commercial Restoration
Operating takeover of a long-vacant mixed-use building. 22 apartments, 3 retail bays. Stabilized run-rate inside 12 months.
Situation
Mixed-use building, fully vacant for about four years. Storefronts papered over, apartments empty, life-safety items expired, boiler dead. Shell was sound — roof, masonry, and most original details intact.
Strategic Interventions
- Life-safety re-certified. Fire panel, sprinkler riser, smoke & CO across all floors.
- Mechanicals restored. New boiler, risers pressure-tested, roof flashing, third-floor water damage remediated.
- Residential restored, not gutted. Original casings, plaster, and pine floors preserved in 18 of 22 units.
- Commercial leased. Corner bay to an F&B operator; secondary bay to a service tenant; third bay held strategic.
- Lease-up program. Mid-market positioning, model unit, marketing relaunch. First move-in at ~240 days.
- Owner reporting. Monthly P&L, rent roll, capex, and KPI dashboard from day one.
Results at One Year
- Residential occupancy: 0% → 73%
- Commercial occupancy: 0% → 67%
- EGI: $0 → stabilized run-rate
- OpEx ratio: low 40s of EGI
- Time to first move-in: ~240 days
- Lease-up trajectory: ~12 months
Outcome
Full vacancy to stabilized run-rate in twelve months. Both components income-producing, code current, original character preserved. Positioned for long-term hold or refinance.
Relevance
Applicable to small-format commercial buildings in secondary markets that have lapsed into vacancy but remain structurally sound — hands-on takeover, disciplined restoration, deliberate lease-up.
Representative engagement profile. Specific borrower, lender, brand, and asset identifiers have been generalized. Figures are illustrative of typical engagement performance and do not reflect any single client. SUNdhm is a New York State approved receiver and property manager.