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Deals don’t fall apart because a building is old—they fall apart because nobody planned for what the building needs. We open the hood on a 20,000-square-foot warehouse we put under contract, walk through our due diligence in real time, and show how to turn a janky, hard-worked property into a leasing-ready, financeable asset that throws off long-term value.

We start with the spaces people actually feel: reception, restrooms, and the break room. Under grimy carpet we found real terrazzo—expensive to build today, perfect to polish and highlight. We keep the second floor lean until a tenant asks, preserving cash and flexibility. Outside, we attack first impressions and safety with a full softwash, strategic paint, robust LED site lighting on every elevation, and a $15,000 landscape cleanup across 2.3 acres. Two metal “sheds” with concrete and power get right-sized: one sold, one reskinned for useful storage or light process space. The result is a brighter, safer, simpler property that shows well and leases faster.

On the finance side, we break down how to structure the loan around an as-completed appraisal so equity is applied to total project cost, not just purchase price. We share the comp packet we hand to appraisers to speed turnaround, and how we navigated environmental curveballs: a flagged underground storage tank, encapsulated asbestos, an RSRA reading low risk, and a bank that still required a Phase I. Built-in buffers—time, cost, and patience—kept the deal moving. For leasing, we outline why we prefer an anchor user above 8,000 to 10,000 square feet before splitting the space, and why we underwrote on 15,500 usable square feet with a full year of vacancy to protect investors.

If you care about commercial real estate that actually cash flows—industrial leasing strategy, underwriting discipline, environmental risk management, and the practical upgrades tenants notice—this walkthrough is your playbook. Subscribe, share with a fellow investor, and leave a review to tell us the one upgrade you’d prioritize first.

Learn more about Blue Commercial Properties on our website.