So, a client has 10 acres worth about $2MM in city limits with good access to all major highways. A developer wants to serve as his own GC and put up a 300 unit complex of mostly 2-2s and 3-2s Class B complex.
Developers dont have a long track record so owners hesitant to let go of their mostly free and clear parcel.
They believe they can develop this thing much cheaper as they will serve as GC, and there will be a positive delta of several million between construction cost and the permanent financing available.
They are offering client 1) a premium on "sale price", plus 2) some percentage split of the delta (appx 7million) and 3) a percentage of the iwnership of the complex.
I know there are a ton of variables, but what do you think would be a reasonable amount for owner to ask for in each category?
Also, for San Antonio/New Braunfels/San Marcos area, what is the range of construction cost per sq ft (square footage of Class B rental premises -appx 330,000 in this case)?
I think this would be a 3-story complex with no pool,
no garages.
THANK YOU!
Developers dont have a long track record so owners hesitant to let go of their mostly free and clear parcel.
They believe they can develop this thing much cheaper as they will serve as GC, and there will be a positive delta of several million between construction cost and the permanent financing available.
They are offering client 1) a premium on "sale price", plus 2) some percentage split of the delta (appx 7million) and 3) a percentage of the iwnership of the complex.
I know there are a ton of variables, but what do you think would be a reasonable amount for owner to ask for in each category?
Also, for San Antonio/New Braunfels/San Marcos area, what is the range of construction cost per sq ft (square footage of Class B rental premises -appx 330,000 in this case)?
I think this would be a 3-story complex with no pool,
no garages.
THANK YOU!