I very much enjoyed Kristin Ostberg’s “Tales From the Frontier” [August 12]. John Edel, the subject of the piece, is to be commended for his work on the old Lowe Brothers paint warehouse–he is a model of vision, diligence and is worthy of great respect.
In my limited real estate development experience, I believe that the following statement is helpful: if preclosing due diligence is not completed the purchaser will be responsible for costly surprises after closing. Due diligence includes pro forma preparation (a budget with land cost; professional, permit, impact, and utility fees; environmental cleanup costs if any; construction costs; and anticipated income); securing signed letters for all utilities stating that service is available to the property; environmental testing; market research; etc. If a purchaser secures a traditional mortgage a bank will require this information prior to closing.
I hope that Mr. Edel inspires more people to renovate neglected urban gems, and I hope this information is a constructive addition to the preservation dialogue. Keep up the good work!