OPPORTUNITY SPELLED “O-R-E-O”
John Nichols of The Nichols Co says second-generation commercial properties that could be converted for use as apartments ?are hot as a firecracker.? John's company has made a specialty out of selling properties banks have foreclosed on, something the industry calls OREOs. (Bisnow fact: underwater properties are less depressing if you substitute "milk" for water.) The Nichols team made its name over the years marketing existing buildings for adaptive reuse, like the former Central Avenue Methodist Church property at 1201 Central Ave (below).
John thinks the 100-year-old, 6k SF, 4.25-acre compound would make a nifty multifamily redo, with a restaurant in the church and apartments around it. (No real asking price for this one. Best offer will be considered.) So it was an easy transition to launch a niche service targeting foreclosed properties on behalf of such banks as SunTrust, Bank of Granite, and BB&T. New development and new lending will probably remain slow until the OREO properties are sold. (Why not ask the Girl Scouts for help?) John says ?The banks need to get rid of these bad assets.?