While new construction seems to be popping up all over the place, not all commercial developments involve constructing new buildings. In some cases developers spend large amounts of money redeveloping buildings already in existence. This is illustrated in the purchase of 401 N. Broad St., a year and a half ago by Netrality Properties, an affiliate of Amerimar Enterprises.
A well known building in the telecom industry, the Philadelphia property boasts 1.3-million-square-feet, in its 11 stories. It is an important property for not only local residents but others in the United States, because of the role it plays in providing many telecom companies with access to fiber routes to Europe.
In addition to purchasing that property, the developer also purchased adjacent properties. Besides the lobby, time and money was put into renovating point of entries and a large—20,000-square-foot—room, known as the “Meet-Me-Room” where connections between different networks can be made. More parking and cooling towers were also created.
Thus far, $55 million of the $70 million budgeted for improvements has been spent. More work on the property is expected as the remaining 300,000 square feet is built out.
In a project of this magnitude it is possible that a variety of construction issues could arise. When problems do arise, the best approach is usually to quickly address them with the assistance of a lawyer who practices in this particular area of law. Addressing an issue in a timely manner could make a big difference in the expense associated with the issue.