Rezoning commercial to residential

I am considering my first foray into the commercial zone. I want to purchase something with residential potential though.

I have looked at alot of properties zoned mixed use zoning with current commercial usage, but now have come across something different.

There is a strata unit for sale (office space) zoned commercial C. The agent is advertising it as potential for residential conversion STCA.

Has anyone ever purchased a commercially zoned property and managed to successfully get it re-zoned?

How can I be sure, prior to purchase, if rezoning is possible??

 

the chances of rezoning a strata office in a complex to residential are somewhere in between slim to none I suspect, probably in like with likely margins at the end of the project.

the whole building would surely have to be rezoned instead of 1 office?

 

That's sort of what I thought....so why would the agent be advertising it as residential potential?

 

I cant answer specifically since I don't know the situation but there are few possibilities.

1) maybe this one unit could actually be rezoned, stranger things have happened as unlikely it is

2) there is rezoning possibility for the building, that would obviously include your unit too but would involve the entire building with a bunch of different owners coming together and getting it done so while it's certainly possible it's not an easy task

 

Sounds more like something with a 'change of use' potential. I've seen properties with similar potential in WA. Still usually a difficult prospect since a change of use application usually means having to bring it up to code.

 

Where abouts are you?
Where you looking ?

You got to think that if sydney wharehouses, the transformation of parramatta rd corridor .changing most of their zoning to apartments above and shops below.

 

Residential development may be permitted in the zone.

 

Are you in sydney ?

 

Spoke to the agent today and it's number 2.

But he justified it based on the fact that it is a smaller building so fewer owners would need to come together to get it done. Which I agreed with.

 

You guys are psychic. It is in Sydney. It is a warehouse style strata lot. My research last night concluded that if its business zoned there is definitely potential for residential use now (with strata and council approval) as shop top housing and in the long term for the building to be converted to residential zoning.

However.....the agent doesn't know the zoning and doesn't have a contract.....despite the property being advertised on the market for over a week. Have made an appointment to view it anyway.

 

think about what is involved. ok say it gets rezoned, then what? best realistic scenario is selling it to a developer then. getting a bunch of people together who probably aren't developers to agree to a beat way forward to actually turn them into apartments, then finding the cash to do so and executing the plan is not an easy task. if it looks like there are only a few owners, theyre open to getting it rezoned and the margins are worth the exercise then look into it further. if not I suspect it's more trouble then it's worth

 

What's the address? I can check in 5 minutes for you. PM if you prefer.

I was today, tomorrow I'm in Gosford, Thursday I'm in Newcastle. Sigh.

 

Not sure if this is one of your points but for the sale of a commercial property the contract isn't usually prepared until you have terms agreed.....unless it's going to auction.

Conversion to residential is happening quite often in the area I'm in....North Sydney/St Leonards, and with the introduction of the new strata laws it will be more common. There are a few developments that have been mothballed for the time being as there are thousands of units due to come onto the market over the next 2-4 years

 

Is possible if this is anything to go by..

$30 million for Alexandria site for more housing

 

@kmrr - the zoning is specifically mixed used but is designed to encourage residential living within a light industrial concept ie living over studio/artisan workshop or factories/offices. The zoning exists over one of the largest brownfield areas in Sydney with the proposed density also to be the highest in Sydney (10000 people/km2) - ie Green Square.