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Multi-Family and Apartment Investing

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33
Posts
4
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John Wilson
  • Investor
  • Sylvania, OH
4
Votes |
33
Posts

New build apartment Complexes

John Wilson
  • Investor
  • Sylvania, OH
Posted Aug 12 2022, 20:22

I Closed on my first commercial nine unit, in  a prime location in my area in June.    I later discovered through The planning commission in my area , The property I just acquired is already zoned for 37 units.    I would love to be able to maximize my investment by Building 2-3 more apartment buildings on the property, i’m just unsure of the cost of a new build versus acquiring another existing apartment building in another location.     Is there anyone out there that has  completed new build projects? Or is there anyone out there that can shed some light On The cost of new build versus existing.              Thank you in advance for whoever will give a response.

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297
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159
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Adam Lacey
  • Investor
  • Castle Rock, CO
159
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297
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Adam Lacey
  • Investor
  • Castle Rock, CO
Replied Aug 15 2022, 19:51

@John Wilson construction cost can vary a lot by area, but you can probably use a rule of thumb like $200/SF to get a rough cost. I would contact 2 or 3 contractors in the area to help hone in on what that estimate should be. Keep in mind, they may give you a cost for vertical construction only. You'll also need to consider permitting, architect, engineer, possibly zoning...etc. For a small development it might not be applicable, but you'll also need to find out if your development project would require you to improve the adjacent roads and utilities. That can be a significant cost if the municipality requires offsite improvements.

User Stats

33
Posts
4
Votes
John Wilson
  • Investor
  • Sylvania, OH
4
Votes |
33
Posts
John Wilson
  • Investor
  • Sylvania, OH
Replied Aug 15 2022, 20:33

Thanks Adam for the insight.   The property I acquired is already zoned for 36 units an acre.  I currently have an acre and a half.  I’m working with an architect who is preparing a sight plan review to submit to the planing commission.  There saying I will have a hearing with the planing commission in October, and from that point ,I should get the go ahead for permits.   On the sight currently ,i have two 4 units multifamilys buildings and 1 single family. I will have to demo the single structure ,to build two 12 unit  structures.  The location is truly prime for my area and I would love to maximize my investment.   Where the uncertainty lie’s is the total cost, I’ve got bank backing ,but only for about 1- 1.5 million.  I came from the skill trades/ construction background, so  I do have a lot of connections as far as contractors to preform the work at a lower price point that the average guy .  

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