Developing and Financing new 6 Unit Multifamily - what would you do?

[Zeb Wallace]

Hi folks,

I’m in the process of using California's SB 684 to split my multifamily-zoned lot in order to develop a new multistory with ~6+ new units (hopefully) on the new parcel.

Does anybody have any experience finding developers and/or capital to invest in developing small multifamily projects like this?

I intend to front the money for all the planning work and will “contribute” the land as sponsor equity, but would be looking for someone else to come in to potentially manage the development and bring the capital.

Alternatively, I’m considering whether it makes more sense to just sell it as a development opportunity once I have obtained planning approvals.

Curious what people think would be the best way to proceed.

[Chris Seveney]

Quote from @Zeb Wallace:

Hi folks,

I’m in the process of using California's SB 684 to split my multifamily-zoned lot in order to develop a new multistory with ~6+ new units (hopefully) on the new parcel.

Does anybody have any experience finding developers and/or capital to invest in developing small multifamily projects like this?

I intend to front the money for all the planning work and will “contribute” the land as sponsor equity, but would be looking for someone else to come in to potentially manage the development and bring the capital.

Alternatively, I’m considering whether it makes more sense to just sell it as a development opportunity once I have obtained planning approvals.

Curious what people think would be the best way to proceed.

 My recommendation would be to sell it once its entitled. I have worked for decades in development and in many instances it was just as profitable and a lot less headache (and less risk) to sell off the entitled piece of land.