Multi-family Construction
I'm looking into researching some multi-family zoned land for 2 local contractors. I have 2 findings that I'd like to present to them. One is a 2.02 acres and approved for 32 units the other is 7+ acres and approved for 107 units (in a military town), both have city utilities available. I can get the rental comps for the areas but construction and sales comps are more difficult. No new constructed multi's in the areas for about 10-12 yrs.
My question to any multi contractors is what further information would you want, and what further info can I find before putting costs in site plans, surveys, or what esle may exist? Thanks for anything.
The density is very high on those parcels. I assume this is in the city and the builder would have to do many stories...
If you are talking about multifamily RENTAlL this is one question, condos another.
You say approved. Have you seen the D.O.? How old is it, what are its stipulations. The D.O. should be puboic record. Get it. Don't worry about costs to build and develop. These are immaterial to waht the market is.. He know those numbers anyway.
Put your self in the developers shoes, he wants to know if he can make money at the market rents or sales prices. Give him that info.
Good luck. ( By the way - if I was near that area, I would be interested. I am a multi family developer.)
Gregg
[addsig]
GFous thanks for the response.
Well I don't know what a D.O. is but am more than willing to find out and learn what it is. The approval has been of the propsed sit plans. The 2 acre tract is approved for (4) 8 unit bldgs and the 7 acre tract is approved for 14 units an acre (attached or detached) and 9 units in the remaining land. Is there a sensible way for me to approach them with potential of being a partner or is $ key to partnering in something like this? Thanks
Demographics are the next big issue. Total population in the area, income spreads, vacancy rates in existing complexes.
If you want to carve a position for yourself as a partner get control of the land (L/O, purchase agreement, straight option, whatever) own any piece of the deal and you become the route to progress.