Cost of 8 unit developtment

[Igor Messano]

Hi everyone,

I will be possibly be acquiring a commercial property in a triple (large) parcel in Philadelphia. The property is currently under a NNN lease which has a good amount of time left. While the investment is decent with the current lease structure, the upside would be future development in 2-4 years. The area that this is in is rapidly appreciating with 300-400k SFH selling blocks away and great rental area.

With a mixed use commercial zoning, what are some rough estimates to build a 7-8 apartment units with 2 commercial fronts in Phila? I dont need exact numbers but trying to get an understanding of rough estimates for some back of the napkin understanding. Does 50k/unit sound reasonable building from the ground up? I already have costs to remove the current structure.

Any knowledge share would be really appreciated!