A developer has purchased an old vacant building in an area that is coming back to...
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A developer has purchased an old vacant building in an area that is coming "back to life." There are new residential subdivisions, apartments and condominiums and supporting services such as grocery, pharmacy, etc. being constructed in the area. The building cost $175,000 and needs significant repairs and renovations before it can be used. It is a one story 7,000 square-foot former Convenience Store with a small storage area in the rear. The building is almost "square." The plan is to rehabilitate it for use as a medical office building. The project will require a new roof, windows, doors, HVAC, appropriate floor coverings, new entranceway, reception and waiting area(s). The renovated building will have eight examination rooms, two x-ray rooms with 300 sq.ft. each, four labs at 100 sq. ft each, 6 restrooms, several small closets for storage of maintenance supplies and cleaning supplies, employees cloaks, one locker room for clothe changing, two 200 sq. ft. areas for clerical work, and eight 150 sq. ft offices for professional staff. The parking lot will also need repaving after the underground fuel storage tanks are removed. In other words, the building needs. to be completely gutted and rebuilt. And, of course, several permits will be required. The site does not need rezoning for the proposed use and the size of the parcel will adequately accommodate all project needs including driveways, walkways, setbacks, easements, landscaping, new parking requirements, dumpster accessibility and emergency vehicles. The developer would like to get the building ready to "market" in 10 months. The new renter/leaser will install new equipment and furniture as deemed appropriate for the business. The new owner will borrow the money at 5.5% interest for purchase and renovations, less a 20% deposit, and would like to pay off the loan in 7 years. Your assignment is to prepare a Project Management Plan to renovate the building project in its entirety and to have it ready to "market" in 10 months. Your assignment also includes cost estimates and a monthly rent/lease rate that will completely pay off the loan in 7 years.. A developer has purchased an old vacant building in an area that is coming "back to life." There are new residential subdivisions, apartments and condominiums and supporting services such as grocery, pharmacy, etc. being constructed in the area. The building cost $175,000 and needs significant repairs and renovations before it can be used. It is a one story 7,000 square-foot former Convenience Store with a small storage area in the rear. The building is almost "square." The plan is to rehabilitate it for use as a medical office building. The project will require a new roof, windows, doors, HVAC, appropriate floor coverings, new entranceway, reception and waiting area(s). The renovated building will have eight examination rooms, two x-ray rooms with 300 sq.ft. each, four labs at 100 sq. ft each, 6 restrooms, several small closets for storage of maintenance supplies and cleaning supplies, employees cloaks, one locker room for clothe changing, two 200 sq. ft. areas for clerical work, and eight 150 sq. ft offices for professional staff. The parking lot will also need repaving after the underground fuel storage tanks are removed. In other words, the building needs. to be completely gutted and rebuilt. And, of course, several permits will be required. The site does not need rezoning for the proposed use and the size of the parcel will adequately accommodate all project needs including driveways, walkways, setbacks, easements, landscaping, new parking requirements, dumpster accessibility and emergency vehicles. The developer would like to get the building ready to "market" in 10 months. The new renter/leaser will install new equipment and furniture as deemed appropriate for the business. The new owner will borrow the money at 5.5% interest for purchase and renovations, less a 20% deposit, and would like to pay off the loan in 7 years. Your assignment is to prepare a Project Management Plan to renovate the building project in its entirety and to have it ready to "market" in 10 months. Your assignment also includes cost estimates and a monthly rent/lease rate that will completely pay off the loan in 7 years..
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While I can provide you with a highlevel outline for a Project Management Plan its important to note that creating a comprehensive plan including detailed cost estimates and financial calculations wou... View the full answer
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