How much would it cost me to build a four-plex apartment building

Question

How much money would it cost to build a four plex from scratch? I already have an acre of land but I would need the permits, materials, plans, etc...

I live in the Denver area.

Travis Sperr · Answer

@Matt M. Good question on financing. Financing costs are not included in your cost to build because everyone has different means of financing, some projects take longer, different loan to value depending on source and number of units.

I paid 3/4 point origination and 5% interest only- on the amount advanced on my last deal. The deal I am currently working on, assuming a loan amount of $1.8 MM, same terms - I am looking at about $60,000 in finance costs.

Bill S. · Answer

It really depends on where you are building. In some locations water and sewer taps are fairly cheap. In others, just getting water could be $60K per unit.

4 units on one acre is a waste of land. You will have a tough time finding 1 acre. It's a fairly large lot. You should be able to build your product on half an acre quite comfortably.

It is really tough to find the piece of land you are describing unless you are on the fringe. Zoning has most development scripted and 4 unit properties is not a part of most current zoning concepts. Also renting your units for less than $1/sq ft is way on the low end. Even middle of the road new property should fetch about $1.50/sq ft. Not too many 1,100 sqft units renting for less than $1,500 per month.

It think the land and soft costs should be something you get your arms around. Those are all very location specific. My bet is that you need more money for those than you have currently planned.

Jon Huber · Answer

@Allan Tamez This question is REALLY broad...

How many sqft will each unit be? What does the lot allow?

Will there be a basement? Finished?

Will each unit be a studio? 2 br? 5 br?

Will this be a wood frame, concrete? Would the exterior be wood? stucco?

As you can see, there are a million different combinations. I think you may need to do a bit of research on what it is you will be building... or perhaps talk with a general contractor in your area. I wish I could be of more help

Travis Sperr · Answer

@Jake Silcott thank you for bringing me back in I wasn't aware this thread was active.

$200 a ft is too high in Denver for the product deacribed. I am budgeting $175 a ft for everything from demo of existing to final product, hard and soft construction costs. Financing not included. This number for resale town homes starting at $400k 3 story, roof top decks, etc. 5+ units.

For what @Allan Tamez is describing I would venture to estimate $150 a ft give or take $15 based on relationships, understanding the process and how many of the back office/details are hired out.

My guess is if you are looking to be in the Denver metro area, an acre and build costs do not deliver a cash flowing product.

Barbara G. · Answer

I don't know a thing about building costs but 1,000 rent  a unit would only support a $400,000 investment.  Doesn't sound too good to me.

Nathaniel Boyer · Answer

I have seen what your describing go for around $155-$200/ SQFT depending upon finish level which is essentially the numbers your getting from this thread.  I would listen to @Travis Sperr and @Bill S. as they seem to be well cemented in this market and always have good info.  Having priced and worked in construction in this area, I think your safe around $175, but need to consider parking, curb and gutter, and a few other cost factors as well, depending upon the size of your property.

Matt M. · Answer

What does your $175sqft plus financing come out to? I also assume that since this is a new venture for him, a GC probably isn't going to cut him a deal.

Tyler Divine · Answer

Hi All,

I'm looking for a couple references on a great GC/Builder in the Denver Metro area. I'm a investor/developer, and would like to get bids on a couple of projects via additional contacts other than those I do have. Any good contacts or leads from fellow Denver or Colorado folks?

Any help or guidance is appreciated!

Jake Silcott · Answer

@Travis Sperr, I believe I heard you quote $200 psqft for everything, including land, but not financing in a previous post. Do you or @Matt

@Matt M. care to clarify or debate?

Thanks much!

Jake Silcott

How much would it cost me to build a four-plex apartment building

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