I am curious if there are any Milwaukee area developers on this forum. I have a lot in Menomonee Falls which is surrounded by single family homes, but is within a zone that the long-term plan for the Village identifies as being designated for multi-family housing. Across the street is the beginning of a condo development, but with the condos priced in the $400s, I don't see many (if any) sales.
With that in mind, I'd like to speak with someone about the potential for the lot. The Village planner said he'd approve a 2-unit, but developers have a way of making bigger things happen.
The AASEW just had a developer speak at one of their recent meetings. PM me for details.
@Scot Henry if you have bigger things in mind you have to put a plan together and present it to the zoning commisson for review and consideration. They will decide if your proposal matches with the city's intent and decide accordingly. Ar you thinking about offline conversations while playing golf?
The bigger question is why would you do it? The cost of new construction is currently 31% higher than existing homes; some of the new 5 star appartment buildings in Milwaukee are building for $200 per sqft! Difficult to generate positive cash flow at that cost. This is also evident in the $400k condos you have mentioned - most likely the developer will make 10-15% on those.
If you are interested in more stop by at the pop up event in Mequon on Thursday night.
I was going to mention that Marcus's pop up at his new development in Mequon would be a good opportunity to find out more about development. I believe the Machi's, Machi Lending, will be there as well and they are doing new development including building a road which just got approved. Additionally, Dona Myers, owner of Summit Title, is working on a multi-family development in Racine area.
Thanks for the responses. I am aware of the process for getting developments approved, and I am curious about how some of that is actually accomplished. I have seen projects go up where you wonder "How did THAT get approved?", and yet somebody knew how to make it happen.
In any case, I wonder if a smaller project (say 4 units) that is on the smaller side with square footage can be built comparatively inexpensively. Now it's getting into the builder side of things. It's all fun stuff to learn.
@Scot Henry the cost of new construction is at a historic high. For simple math you can build four 1,000 sqft units for about $150 per sqft, or $150,000 per unit, so $600k in build cost. You already own the land. If you can rent them for $1500 a month the math works. if you build them smaller, your cost per unit goes up, because the expense is in the kitchens and corners, not the flat floors.
For quick reference here is a cost break down for new construction, look at the bottom line, cost of building a SFR has more than doubled since the 90s.