Build 36-Units at $119/sf plus soft costs.. worth it?

[Levi Bennett]

Here's the situation:
I have the land under contract at a good price, I have a GC who is invested in the project and brings a 25 years of multi-family construction experience to the deal. I have an architect retained with over 50 years of experience and is intimately familiar with the site. We have spent around $20,000 in reports and surveys to prepare the property for new construction

The main issue I'm facing is that I don't think we can build this on speculation because our construction loan interest will put us upside down if it sits on the market more than 30 days. Our desired profitability is significantly lower than other developers simply because we want to make this site work at this point, but only if we can find the right partner to commit to buying on the backside. 

Our land is in a gentrifying neighborhood in a suburb of Charlotte, NC and I think the real value is for someone who wants a long term hold, as land in this location (6 blocks from a revitalized city center) is rare, not readily build-able for multifamily. 

How should I market this property?

[Alexandre Marques dos Santos]

@Levi Bennett

I am far from being an expert. But as an investor i would ask several questions:

1). What is the unit configuration?

2) whats square footage?

3) what would be rental price of each unit?

4) expected appraisal/ taxes

5) other significant costs (HOA)

6) asking price?

Then you could build a case for investor that would keep the property or be a partner “giving” you cash to build it. You would skip from loan, and could make a bit more ( or reduce cost).

This is the only way i see viable

Good luck