Property Overview
My business partner and I recently purchased a commercial property at 1137 S Shelby St, Louisville, KY 40203. We were drawn to the property due to its prime location, size, and potential for redevelopment.
Strategic Insights
The property had been on and off the market for several years, primarily due to being overpriced, zoning limitations, and maintenance issues. To make the acquisition worthwhile, we proposed an offer contingent upon rezoning the property.
Negotiation Process
Our negotiations involved several components, including a price reduction and rezoning contingencies. After some back and forth, we were able to go under contract.
Challenges Encountered
The acquisition process presented numerous challenges:
- Rezoning Application: We needed to apply for rezoning, hold a neighborhood meeting, and collaborate with an architect and engineer to create a site plan and renderings.
- City Coordination: We received feedback from the city, modified our plans accordingly, and presented our case to the planning commission. The final step involved a hearing before the metro council.
After 13 months, we secured the desired zoning and closed on the property shortly thereafter.
Outcome
Rezoning added immediate equity to the property, and we look forward to developing a ground-up mixed-use project on the site, with construction anticipated to begin in late 2025 or early 2026.
Conclusion
If you’re considering selling, buying, or leasing commercial property in Kentucky or Indiana, let’s connect! You can reach me at 502-536-7315 or raphael@grisantigroup.com.