March 31, 2008

Buy a condo, get a business investor

Developer offering $25,000 investment as incentive to buyers

DOUG SMITH

A South End developer has devised an unusual way to lure buyers to his live-work condos: invest money in their businesses.

"People are capital starved. Money is as tight as it has ever been," said MECA Properties President Tony Pressley. "What better way to help?"

The incentive is being offered at The Abbott Condominiums, whose 16 units are devoted to entrepreneurs seeking to live and work in the same building.

Qualified condo buyers will be eligible for a one-time investment of up to $25,000 in their business ventures.

There're strings, right?

Every potential buyer must submit a complete business plan and professional credentials and be financially qualified to purchase, Pressley said.

After that?

"I base my decisions more on gut, commitment and track record than credit and collateral," he said. "I'm a 28-year veteran of running my own business."

The exact form of the investment, depending on the needs of the buyer, could vary from repayable debt to an ownership stake in the business, he said.

Commercial and residential developers typically offer incentives such as interior upgrades, flat-screen TVs or rent concessions to fill their buildings.

Pressley, who helped pioneer revitalization in South End, said he came up with this unusual idea himself as a way of "keeping the entrepreneurial spirit alive" and paying forward his success.

But he concedes the offer is more than an act of kindness. "I have product. I want to move it sooner rather than later," he said. "I'll do whatever I need to do to generate interest."

The Abbott's location near South Tryon Street and Worthington Avenue is somewhat isolated now, Pressley said, but it's near small businesses in Camden Square Village West and next to property scheduled to be developed later.

He isn't sure what the reaction will be because he's just now going public with the offer.

Pressley said he wants to reach entrepreneurs through membership databases and spread the word to potential European buyers, who are attracted to live-work arrangements, and to accountants, who might have interested clients.

For some people, he believes, the investment could make the difference in getting an entrepreneurial venture started in this uncertain business climate.

Single practitioners such as lawyers, accountants, architects, designers, travel agents and public relations professionals can reduce costs, he said, by living and working in the same building.

The Abbott is designed with offices and garages on the first floor, living quarters on the second and two bedrooms and a full bath on the third.

Condos range from about 1,700 to 1,800 square feet and sell for $252 a square foot. At that rate, the smallest unit would cost about $428,000.

Three of nine first phase units in The Abbott (www.abbottsouthend.com) are sold. Seven in the second phase will be ready within 45 days, Pressley said.

Development Doug Smith