After nearly two years of planning, Sullivan Development Company broke ground on its first project, a set of one-bedroom apartments at 36th and Leavenworth streets in Omaha. A development at 156th and Ida streets will follow.
A New Adventure
Though this is his first build under the company that bears his name, it’s not Charlie Sullivan’s first multifamily project.
He got his start in the single-family construction businesses before the housing market crash of 2008.
Shortly after the crash, he switched to brokerage, first through Colliers in Omaha and then CIP Management in Lincoln. At CIP he learned about project management for multi-family projects, but, he said, he missed the personal touch and interaction with customers.
“I had a really long chat with my husband about when was I happiest in my career,” he said. “And, it was really the personal touch of homebuilding.”
In 2021, at the age of 55, he decided to start a new venture bringing the last 20 years of experience together.
Neighborhood Niche
One of Sullivan’s top pieces of advice for anyone looking to get into real estate development is this: find your niche. For example, the project at 36th and Leavenworth streets will fill two.
First, all 28 apartments are either one bedroom or one bedroom plus a den. The den, Sullivan said, is an extra room that isn’t a bedroom.
“We anticipate there will be professionals that need a place to work from home,” he said.
Additionally, the top apartments will include rooftop terraces, higher finishes, and controlled access elevators.
Second, the lower two floors of the five-story building — approximately 14 units — will be reserved for short-term rentals, such as Airbnb or VRBO. The proximity to UNMC makes it a good option for traveling nurses or physicians, individuals on fellowship, or perhaps individuals receiving treatment.
“It’s more management intensive,” he said. “But, I think in today’s interest rate environment to be able to increase your bottom line you may have to do a little more work, and it’s worth it.”
Colliers will manage the short-term rentals on behalf of Sullivan Development Company.
Future Thinking
In addition to being blocks away from UNMC, the Leavenworth Lofts are also just four blocks south of the streetcar line on Farnam Street. Because of the proximity, the City of Omaha approved the development for $1 million in Tax Increment Financing (TIF).
“The project’s cost came in at about $7.6 million,” Sullivan said. “In this case, part of our TIF money also goes to fund the streetcar because we’re in the area of influence.”
With the first project underway, Sullivan can reflect upon what he’s learned over the past two years. While raising capital and working through zoning were skills gained, he said something else was more important.
“You have to be patient, and you have to love what you do,” he said. “I would say the hard thing was that I did not always love the first year and a half because nothing was happening. But now I can’t wait to get to work in the morning.”
Sullivan is currently working on two more projects to be announced this year. Both, he said, with a “niche.”
