A Primer on Mixed Use Real Estate Development by Gene Bernshtam
For real estate developer Gene Bernshtam, mixed-use properties are a great investment as they can give you regular monthly income from rental fees. But as with any type of investment, a thorough analysis of all factors involved, as well as strategic planning, is critical to its outcome. First off, Gene Bernshtam shares that a mixed-used property is typically a singular structure or building that serves two purposes: commercial and residential. Urban development over the past decade or so has turned to mixed-use property development to address the needs of the public, while also addressing common urban problems like traffic congestion and daily commutes—generally by providing people with the option to reside and work in the same building thereby eliminating the need to drive or commute to and from work.
Sometimes, Gene Bernshtam adds, a mixed-used project is confused with a multi-purpose development project; probably because they both serve the same purposes: for residential and commercial use. However, a multi-purpose development project generally covers inter-connected structures whereas a mixed-use property is a singular building or structure.
In mixed-use property development, several key factors should be considered first prior to deciding on whether the project is a feasible venture. First, you need to know the market. How will the property fare in terms of market demand and value? Secondly, you need to be aware of local regulations including zoning laws, if any are applicable to your project, and to what extent will this affect the development project from start to finish.
You also need to decide on the design, taking into consideration your purpose for the project, and the community as well. Finally, there is the financial aspect of the development project. How much is your allocated budget, and what is your estimated timeframe for earning returns on your investment? These and more should be carefully considered, says Gene Bernshtam, because you could end up either earning profits beyond your expectations or losing on your investment big time.