Green multifamily investors?

Question

I have several designs for building green duplexes/4plexes. and Even with the increased wood prices we can build at reasonable prices plus land cost.  Question is:. Will investors be interested in the icf insulated concrete form build with like no maintenance with very very low heating and cooling costs that could be offered to their tenantes at rent plus with potential for amenity add ons .  Including internet routers, electric, gas, water, sewer, trash and gas included. Or independently.

Warren Wolfe · Answer

So out of curiosity what kind of sf cost for new construction are investors in your area willing to pay?   Obviously depends on location and potential cash flow ex. 2% rule etc or by whatever metrics people are going by.   I find it extremely interesting the shear spread on rental value depending on where you are.   Same house way different rental values and unless it is just the land making that deviation. I can import the materials to damn near any location lol.  So materials by all rights should not be hugely different.   So I guess labor or something else must be driving the huge value of some of these homes and rentals in these hot spots.   Anyway,.  I have a budget for this area that tells me what I can build it for labor and materials.   Question is how much room is there to drive sales to investors leaving enough meat on the bone that makes sense for them and me still making a reasonable profit for the work to build.

Allen S. · Answer

@Warren Wolfe - I am actively looking at ICF for some of my upcoming projects.  They're not multi-family, but if the numbers make sense, I don't suppose it matters what asset class you're building.  I think that ICF offers benefits anywhere in the northern tier where heating costs are a significant part of your operational budget.  Whether or not your tenant would pay more rent to have lower utility bills depends on your local market.  Being green is trendy, but if your customer isn't willing to pay for that status then it doesn't make as much economic sense...

Keenan Fitzpatrick · Answer

Yes. Investors will always be interested in more affordable building strategies with lower maintenance and holding costs. ICF is starting to take off here but I haven't seen any multi-family builds. I would like to though.