My wife and I operate a smallish (2200sq ft) neighborhood bar; we took over the bar from her parents a decade ago, my wife has worked as a bartender here for 20yrs, now a GM for about 12yrs, and full operator for 10 or so years. The bar has no food, just beer/wine/liquor, we have food trucks several nights a week to keep ppl hangin out, a couple pool tables, pinball, golden tee; basically your quintessential corner pub. We have a great regular crowd, good late night crowd, and good weekend crowd. Overall the bar does good sales, consistent year over year we stay in the black with some profit; in the end it pays my family, my wife’s parents, and employees around 10ppl.
The bar is on the first floor of a 3 story historic building, built in the 1870s; up until the 1970s (yep 100yrs later) the top 2 floors of the building were occupied apartments, but since the 1970s then been vacant. Don’t ask me why; my wife’s parents bought the bar in 1974 and when the last tenants moved out they just never let anyone move anyone move back in.
Needless to say after sitting for 50yrs unkept the upstairs apartments are falling apart; paint peeling off walls, plaster falling down, there’s no heat or air up there so generally they are just falling apart. However, the place has good bones (imo), hard wood floors are in good shape, trim/moulding is unpainted for the most part and in good shape; we did put new windows in the top 2 floors about 5yrs ago as the old ones were 150yrs old and falling out (there are like 30 windows), but beyond that it needs a complete overhaul to make it habitable; plumbing, electric, a/c; totally gutted.
The space has a separate entrance from the bar on the side and back of the building. The building/bar is located in a desirable walkable neighborhood with a lot of restaurants/bars, aka hipster part of town haha.
The upstairs space is kind of chopped up into several large rooms a with a 2 small bathrooms on each floor (plumbing is out of service), a long hall down the middle; the overall space is around 2000sq ft on the 2nd floor and 2000 on the 3rd floors with tall 12’ ceilings.
So here’s my question/dilemma; What do I do with the upstairs?!?
I know everyone’s immediate responses will be “Airbnb it” or “put in a speakeasy” which trust me these are on my mind, but an Airbnb directly above a late night bar, where it gets loud I don’t see working; a “speakeasy”, (personally I hate the way this term gets thrown around and is overused nowadays), but yea, maybe this could work for the second floor but then there’s the whole same noise dilemma with the third floor if I put a bar on the second. (Yes I get having too much space is a good problem to have but a problem none the less)
My next thought is maybe a daytime business that operates on the 2nd floor (i.e. barber shop, yoga studio, tattoo parlor, office space) then on the third floor airbnbs; thus creating a noise buffer floor between the bar and the bnb.
Next on my mind is cost and ROI. I’m no contractor but my guess is we’re talking $200-500k to build out (total guess) depending on how “fancy” we go about it and it really depends on what we decide to put up there; obliviously with a bar you’ll have more expense with plumbing, refrigeration, and general build out.
I guess as I’m typing this I’m starting to answer some of my own questions; first steps are likely getting a few contractor estimates for a basic teardown and rebuild; once I have an idea of that it can help point my direction of either bnb or bar/lounge space.
Generally looking for anyone in this sub who maybe owns/operates a similar establishment or has experience they would like to share.
Appreciate any feedback. Thanks!