Quote:
Originally Posted by Simplicity
Nobody is building at $50-$100 square foot in today's market. It's not happening. About the lowest build cost you can achieve without being the prime consultant yourself and managing your own development and construction is about $115-$120 without warranty or bonding and staying within Part 9.
If you're willing to demonstrate a Part 3 building that you've worked on that's been a success (large caveat there) that utilizes above code architecture and engineering, I'm happy to see it. We'd be talking somewhere on the order of $165-$170 hard cost plus another approximately $40 in soft costs. That's almost a $210/ft build cost and that's about where the Rothesay apartments are coming in. And that's Edison building that thing, a family that doesn't need financing and whose owner put a 10,000 square foot house atop at her own expense. That building will only pay for itself in about the 20th year because it's financed by the cash flows of free and clear properties.
And I know how the dollars and cents work because it's my job. I know exactly what it takes to make a project work and at what figures. These numbers don't work when the bank won't let you project more than $1.80 per foot on the back end...
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$150 per square foot construction costs is about as cheap as you can go for multi-unit residential.
I realize those prices ($50 to $100) aren't feasible for today, but they were hardly feasible for the years they were quoted in as well.