CalculateRealEstateROI

Strategy

Adaptive Reuse

Repositioning obsolete property type (office, retail) into higher-best-use (residential, mixed).

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Highest-and-best-use

Convert dying use to demand-heavy use.

Tax credit stacking

Historic + opportunity-zone + LIHTC stacks possible.

Examples

  • Converted 1920s warehouse to 24-unit lofts; 8% cap on cost.

Practical applications

  • Urban markets with obsolete office.
  • Tax-credit-savvy partnerships.

Common mistakes

  • Underestimating structural surprise.
  • Tax-credit compliance failures.