I'm considering building a 25 unit building in downtown Richmond. Any one have any thoughts on the city and the return on a property like this? I'm most concerned with fees associated with the city to actually connect to utilities and other odd items that I have yet to research. I own multiple small single family and under 4 units and I have loved the rental market but saturation might be setting in due to some larger projects coming on line recently.
richmond is a booming market. nothing like us down by the water. from the out lo8king in i dont see how in the world u guys can sustain that market. whats cost per unit to build? seems like ur in the wild wild west back in 2005 up there where pricing is going up 6 figures in a year in some areas
It is crazy here but with 3 colleges and the state Capitol here and the local Fortune 500 outlook on the up and up the city looks strong to me. Plus I'm in the long long long term game so even building at near break even to me seems justified if I have a 20 year outlook.
The market is definitely hot. I had six houses on the market since Thanksgiving and traffic has been high. 4 are currently under contract. My personal opinion is that the growth in Churchill and North Side are not sustainable, but I still like both short and long term strategies in these neighborhoods (just not mid term). Short term, the boom has a good 1-2 years of growth ahead I humbly predict. (just not mid term). With national headlines as a destination city, state capitol, strong employment etc. etc. and gorgeous builds and renovations going on in these neighborhoods I predict 2016 will be a strong year. As a long term hold in the neighborhood I think you are golden. This area will always cycle every 7-10 years and you can pick and choose your buy and sell depending on where you are in the market. As a mid term investment I would be wary of Richmond. I would not want to have to sell a house in the 3-5 year time frame .
Where would you put it Thomas? 25 in shockoe are very different from 25 in church hill!
As you know the market is hot! The tap fees are minute compared to finding a lot to build a 25 unit structure in a desirable area. I've been involved in redevelopment and working with the city is a timely process that is challanging to budget and is nothing like getting a permit for a SF. For example if your fortunite enough to get a lot in a historical district, CAR process takes 30 days just to review before a board meeting. But until you find a lot all is irrelevant.
See the link below. You will see that it is hard to determine exactly what your fees will be untill you have a set of architectural drawings. Also all of you answers can be answered by taking the time to go down to city hall, just put your patience cap on!
I've been exploring/educating myself on shifing more to development and commercial. I'm always looking to network with like-minded people so feel free to drop me a line.
Yeah I have been to city hall more than almost anyone I know. The main issue is that DD at Zoning is the best of the best. Really top notch person. However, getting anything straight thats black and white from anyone other than DD can be so on and off down there its depressing. Calling down there is almost impossible. At least I know the secret parking spot so I can park and walk right in. For me finding the land has always been my specialty. Its the other stuff that stinks.