High End Renovation

[Jonathan Marcus]

Has anyone here in BP done a high end/million dollar renovation? If you have what has been your experience?

I am looking at a raw space in Tribeca, NYC; a condominium with 2,975 sq/ft. My ARV is about $5 million and my research shows construction costs would be about $300/sq/ft = $838,500; add soft costs (permits, architects, designers, etc...) renovation would be about $1 million.

ARV= $5,000,000. x 65% = $3,250,000. - $1,000,000 (renovation) = $2,250,000.00 (MAO)

The seller bought it for $1.8 million about a month ago, got the plans approved and is now selling it.

I've done rehabs but never close to this price range. It would be good to hear from anyone who've done any type of spec build. What to look out for.

Thanks.