new construction costs for apartment buildings in LA county
Investor · Miami, FL · Member since 2014 · 80 posts · 32 votes
Hello All,
i'm interested in the construction business and am shopping around to get $/sqft costs
for new wood frame modern apartment buildings in mid class neighborhoods in LA county.
I only have experience in rehabilitation
As example i take a 8000 sqft, 10 units, 2bd / 1bath, 2 story apartment building, wood frame, modern design, built on a 7000sqft flat lot with available utilities, in a mid class area in Los Angeles. Project would also include 8 covered parking spots, driveway, gate, and landscaping on 3000sqft.
What would be the all included (engineering, permits, materials, labor,...)sqft construction cost on a $/sqft basis for the such a project excluding land? what about the time frame?
I was thinking about somewhere around $100/sqft for the building and 1 year to complete the project, but i might be wrong
thanks for any input!
@Account Closed you're off by at least half.
I'm not clear what you consider to be mid class neighborhoods, but for apartments, by this I mean 5+ units, we underwrite hard costs at $135 psf. When you add in permits/fees and soft costs (engineering, arch. etc) we underwrite another $75-$90 psf.
This is assuming flat land and parking on ground level. If you have to go subterranean for your parking you can assume about $25k per spot.
The examples on the MLS you pointed to are 2-4 units which can be done less expensively and are in neighborhoods where more cost effective materials and finishes could be used and still sell. I'd expect all in costs (again SFR and 2-4 not larger apartments) at $135-$150 psf.
Several of my clients who build/sell 50-100 2-4 unit properties a year in the neighborhoods you've given as examples could build at $80-$100 psf only because they use the same architectural drawings have crews on salary and don't bid out via General Contractors and buy materials in bulk and at wholesale trade prices.
The markets we consider Mid Class would be Culver City, Palms, Mar Vista, Silverlake, Echo Park, etc. In those areas we expect all in costs for SFR and 2-4 units at $250 psf.
Best of luck
A
I can tell you that the amount of misinformation posted on this thread is pretty surprising considering many people have listed themselves as industry professionals. You will build nothing in the Los Angeles area or greater LA area for 100-200/SF. You will not even get to rough in at that price. Do the math. Properties are selling for 600/SF and up. I know for a fact that investors are not doubling their money + on new construction. That simple comparison aside the timeline mentioned for construction and permitting is totally unrealistic. Permitting a multi unit project may involve design review in addition to other agencies. Getting the permit alone will take you 6-8 months minimum. Misinformation of the sort posted here is irresponsible and often leaves clients at a crossroads mid project when they run out of cash. Perhaps the 100/SF number is only for the framing. You then have to add site work and utilities which if hillside is expensive depending on soils geology--could be as much as 25% of the budge . There may be zoning and easement issues which take time expediting. Engineering and consultant fees. HVAC, Electrical for multi units-separate meters for everything. Fire sprinklers/FLSS, Plumbing the list goes on. You will not get that at 100/SF. Also Architect, contractor and permit fees. Feel free to comment with any questions. I can answer them. You would be fortunate to build any residential project in LA or its vicinity for 350/SF and that does not include the land.
@Andrew Matt Get a signed contract for apartments at 350, i'll build it for you at 300, let's put that typing to reality. Remember, this is APARTMENT! You're first post and you are already bragging that you're THE industry professional.
Any updates on finding out the actual costs?
@Allan Glass I know this was from 3 years ago but do you consider your costs much different now? I think these costs are really close to today.
@Paul Krause no these numbers are no longer correct. I'd think HC's will approach $200 psf today
@Allan Glass Thanks!
That's hard cost only and based on the clients I have been dealing with which typically only put out high end products in high density transit oriented developments.
@Account Closed you're off by at least half.
I'm not clear what you consider to be mid class neighborhoods, but for apartments, by this I mean 5+ units, we underwrite hard costs at $135 psf. When you add in permits/fees and soft costs (engineering, arch. etc) we underwrite another $75-$90 psf.
This is assuming flat land and parking on ground level. If you have to go subterranean for your parking you can assume about $25k per spot.
The examples on the MLS you pointed to are 2-4 units which can be done less expensively and are in neighborhoods where more cost effective materials and finishes could be used and still sell. I'd expect all in costs (again SFR and 2-4 not larger apartments) at $135-$150 psf.
Several of my clients who build/sell 50-100 2-4 unit properties a year in the neighborhoods you've given as examples could build at $80-$100 psf only because they use the same architectural drawings have crews on salary and don't bid out via General Contractors and buy materials in bulk and at wholesale trade prices.
The markets we consider Mid Class would be Culver City, Palms, Mar Vista, Silverlake, Echo Park, etc. In those areas we expect all in costs for SFR and 2-4 units at $250 psf.
Best of luck
A
Hi! I know this post is from a while ago, but I'm interested in knowing about the cost of building a Subterranean Parking for residential units (let's say condos 4-10 units). I'm struggling on a potential deal that requires either going with underground parking to fit more units or foregoing 1-2 units for ground level parkings. Would the number you provided ($25k per spot) per space still apply in the greater LA area today? Is that strictly for apartments? Thank you.
I can tell you that the amount of misinformation posted on this thread is pretty surprising considering many people have listed themselves as industry professionals. You will build nothing in the Los Angeles area or greater LA area for 100-200/SF. You will not even get to rough in at that price. Do the math. Properties are selling for 600/SF and up. I know for a fact that investors are not doubling their money + on new construction. That simple comparison aside the timeline mentioned for construction and permitting is totally unrealistic. Permitting a multi unit project may involve design review in addition to other agencies. Getting the permit alone will take you 6-8 months minimum. Misinformation of the sort posted here is irresponsible and often leaves clients at a crossroads mid project when they run out of cash. Perhaps the 100/SF number is only for the framing. You then have to add site work and utilities which if hillside is expensive depending on soils geology--could be as much as 25% of the budge . There may be zoning and easement issues which take time expediting. Engineering and consultant fees. HVAC, Electrical for multi units-separate meters for everything. Fire sprinklers/FLSS, Plumbing the list goes on. You will not get that at 100/SF. Also Architect, contractor and permit fees. Feel free to comment with any questions. I can answer them. You would be fortunate to build any residential project in LA or its vicinity for 350/SF and that does not include the land.
Please contact me i'd love to build for you millions of sqft at $350 a foot in LA
If you want to not know how much it really costs to build ask an architect or a GC from LA
These guys are: either scamming you, don't know what they're talking about, have always worked with union wage co or/and have always been scammed and think that the rates they have been working with all their life are the only thing that exists out there
Yeah sure, pickup the phone and find a builder on yelp he will tell you i can build that cape cod piece of crap for 350-600 a foot
Now, my LA update 2019:
construction prices have significantly increased in the meantime this post was started
Nowadays, the average joe can pick up the phone and have an average V home built for about 250 - 280 bucks or a foot including hardscape and landscape in LA county if he's looking a bit
An architectural home with steel frame, precast concrete etc could run 300-400+ but no one here on BP is building $10m homes anyway
A competent GC could likely build it for himself for twice less
Prices for simple apartment building are about 250 buck a foot for scaled projects; a bit more if subterranean parking is needed
Now, these are retail prices and the reality out there is that if you want to make money in the current market you need to look harder and be creative because at these rates you'd hard pressed to make any money on any deal in LA
I'm running these numbers every single day and well positionned to tell you that many smaller developers and builders do upper end projects for less than 200 a foot and as low as 150. They actually have to otherwise most of the projects delivered on the market today would lose money