We are developing a 40-60 unit apartment building in the mountains of Colorado. Property values in the area are high...so are construction costs. We are exploring options as far as straight rezoning in High-Density Residential or working through the PUD process to gain an additional 20+ units. 40 are use-by-right within the zoning. We own the land free and clear(approximate value 2M). We are considering modular or traditional builds.
My partners and I manage a portfolio of property that spans multiple states and a variety of property types. We have never developed a multi-family property. I am seeking guidance in this process. Specifically in creating a proforma to determine which of the available size and construction options makes to most sense from a risk/return perspective. I am unfamiliar with where to start and how to gather the information. I'm also interested in general knowledge of the multifamily development process(which loan vehicles may be best, which pitfalls to avoid, etc.). Anything helps. Thank you.
Happy to discuss project location and specifics in private messages. Thank you.
Being inexperienced and putting together a project that big, I would suggest you hire a consultant with experience in developing a project of that size. A cost of mistake on a project of that size would easily cover the costs of hiring someone that is experienced. As with everything, check references, past jobs, etc.
I would agree with Karen. At least for the first one, use someone who has been there and done that, so you can learn from them before going solo !!!
Jake feel free to reach out, I'm just over the hill from you and have experience with the modular portion. Also have a similar situation over here, let's collaborate
Hi Jake, I can give you a bunch of insight on financing options for a project like this. I've financed tons of multifamily developments throughout the U.S. and would be happy to give you as much information and tell you about the different financing options available. I also have access to both Costar and Reis, which can help you with rent comps in the area. Feel free to connect.