How does the world of raising capital for large scale property improvement and investment work?
I know this is a super vague question, but the situation is as follows:
I work for a couple who own a huge, beautiful building in an affluent college town in the northeast. Street level spots are doing just fine, with businesses operating out of them, thriving and paying rent etc, but there's three full floors of glorious building above that remain unused. The owners are very interested in utilizing the space, but have no idea how to go about raising the capital or forming an investment group to do so. This particular building would honestly make a beautiful, classy restaurant/brewpub and hotel combination if executed properly.
Now, back home in PDX, it was really common (see, McMenamins
, Ace Hotel
, Etc) to see buildings very much like this turned into restaurants, bars, venues, etc. There's a trend in the northeast for older mill building to be repurposed, and this building is very much in the same class. This building is just ripe for revitalization and has the bones to make a very interesting hotel/restaurant/brewpub hybrid. I've not really done any research as of yet, but this area gets most of it's money already from tourist traffic and the college presence, so it appears on the surface to be a good fit.
My broad, broad question (hopefully with several to follow) is how do renovations like this take place from beginning to end? How do investment groups get pulled together to finance operations like this?
I'm sure there are consulting firms that specialize in this and individuals with degrees in finance and hospitality are more geared towards a good execution of such a thing, but I'm wondering if it's something that can even be attempted by a mere mortal with a communications (PR) degree and a couple decades of experience in the food industry?
My end goal is to work up a proposal for the owners to allow me to facilitate the project of actually pulling together investors and get the ball rolling on getting a financial group together to repurpose the building (the owners have no real time to do so, running several other quite successful businesses, but again, have expressed interest in the desire to use the rest of the building). I personally have no money to throw at an investment property like this, but I do have plenty of time and drive. My family and I going to be living in this area for the next 2 years +/-, and I'm actively trying to claw out of jobs that only pay $12/hour, so this seems like it could be a long-shot opportunity. Realistic? What steps would I need to take?