Fireproof Storage Redevelopment

Elford helped Mike James of Fireproof Storage redevelop his family’s site while significantly increasing cash flow.

Property Details

Elford Development approached Mike James, owner of Fireproof Storage, about exploring an opportunity to redevelop their family’s large site in the Short North. Mike was looking for a partner with expertise in urban mixed-use developments and Mike thought Elford was uniquely qualified to handle his project, having recently just finished The Hub Project. He simply wanted to maximize his family’s assets’ value but also wanted to be thoughtful of the history the Fireproof building had over the years with his family.

OUTCOMES

Elford Development was able to develop a plan whereby Mike James would make a substantial return on his contributed land as well as a sizable percentage of net cash flow thereafter. Upon arriving at a fair and equitable land number, the results were as follows:

• Elford and our team of consultants altered the current site consisting of a 5 story warehouse building that was 60’
  wide by approximately 300’ deep, to a 5 story new / old urban structure that again fits seamlessly into its newly
  gentrified surroundings.
• The 4 & 5 story new building includes 15,500 square foot retail first floor and 56 residential units above. This project
  features both residential and commercial outdoor space.
• The development team was able to locate and establish a long term lease with a local contiguous Baptist church
  adjacent to the project, helping the project offer 33 additional parking spaces.
• The new entity consists of both the James Family as well as the Elford principals in a newly established partnership. The property ownership entity was given a capital account for their land (based on an agreed to value) and the property was contributed to the new entity. The land owners receive a preference payment which has a priority to other Cash Flow distributions going forward.
• Even with newly placed debt on the project, the project’s cash flow generated from this new project is over $500,000
  annually.

Client: Mike James