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Transforming an Innovation Center

Saul Zenkevicius smiling in a dark tweed blazer

By Saul ZenkeviciusCRE Investor

Saul Z - Innovation

In November 2023, we paid $4.5M for the innovation center.

If this were an office building, it would've been a so-so deal.

If it were small-bay industrial, we'd be printing money. But this wasn't either. So we got to work.

We hired the best land-use attorney in town, an architect, and two local government consultants to lobby for us.

Together, we built a plan to get the zoning use modified.

Hearing

The first real test came in October last year when we went before the zoning board for a public hearing.

We didn't realize it at the time, but we had terrible luck with scheduling.

The room was tense, and even though our project had nothing to do with that one, we got caught in the crossfire.

After a long debate, we finally got approval to move forward to next review.

Strategy

The next 2 meetings were the planning commissions—regional and local.

This is where things got really tactical. At these meetings, we brought tenants with us - real businesses that needed space and supported our vision.

Finally, we got a recommendation to approve with some revisions.

Progress

By January this year, we were back in front of the zoning commission.

This was the same board that had given us the most heat back in October.

But this time, the conversation was more productive. We won approval with some guardrails—office/warehouse tenants over 10,000 sq. ft. would need conditional approval.

Victory

And we moved to the last step of approval process - Trustees Meeting.

The moment of truth was around a month ago. We showed up prepared. No public opposition (huge win). Letters of support from community leaders.

Then, after a long discussion, we reached the deal:

✅ Office-warehouse use approved, with conditional approval for tenants over 10K sq ft.

✅ Automotive use reinstated - but limited to customization shops only (no engine work, no outdoor activity)

✅ And a total of 29 newly approved uses.

Results

That was it. This legislation turned on the switch for property demand. We ended up on local news. Land value became 2-3x more valuable. And this property will be full in next 12-18 months.

Can't wait to get this done. I'll write another blog when I have updates.

This type of transformation is what draws me to small bay industrial.

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Saul Zenkevicius smiling in a dark tweed blazer

Saul Zenkevicius

CRE Investor

Chicago-based commercial real estate investor and founder of Z Equity Group with a 9-digit portfolio across 200+ principal transactions and 20+ years in real estate. Specializes in small bay industrial and distressed commercial real estate.

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