By Isaac Bonnell
As financing for new construction has all but dried up, developers are trying anything they can to improve their chances of getting a loan.
Such is the case for Mike Hays, broker/owner for Exit Realty and developer of a planned four-story mixed-use building at 1211 Jersey St. across from the PeaceHealth St. Joseph Medical Center South Campus.
Hays first purchased the four housing lots for the project in 2006 and began the process of consolidating those lots and planning the project in 2008, at the cusp of the current recession. Since then, financing has become more difficult for developers to acquire.
So to improve his chances of getting financing this year, Hays had the $3.3 million building redrawn to reduce its overall cost and add four rental units to improve the net income of the development.
“From the outside it will look pretty much the same,” Hays said.
The building will now include 24 apartments and about 2,400 square feet of commercial space on the ground floor. There will also be some underground parking, but parking will also take up about 75 percent of the ground floor of the building.
Parking was the limiting factor for the project, Hays said.
“Parking drives how many bedrooms you can have and that drives how much income you can get,” he said. “And we need all the rental income we can get. “
Hays applied for a building permit in April and is still seeking financing for the project. But he said he is optimistic that all the final pieces will fall into place and hopes the project will be complete by summer 2011.