Construction cost for Apartments

[Wen Ma]

Hello I own a High Density Zoning land in Placer county, California, currently is used for a child care center.  I have the idea to demo the currently old buildings and build a 12 units apartment ( 3 floors allowed) . I am new to development, any one can help me understand the construction cost for apartment  construction in CA , large Sacramento area?  I am thinking 2 bedroom 2bath so I might be able to minimize tenant turnover?  Thanks to anyone who can share ideas.

[Evan Polaski]

@Wen Ma, the thing with any construction estimates is: it all depends.  Does this area require quartz counters or laminate?  Wall to wall carpet, LVP, solid wood?  Stainless appliances?

What about amenities?  Will you need a pool for the residents?  Fitness center? Each market and submarket will demand different things.  

And lastly, will you be running as GC?  Your lender will likely not allow you to, so you will need to hire a commercial GC or partner with one.  Partnering is cheaper upfront, but likely going to cost you more overall, since they will share in all upside.  

WhileI am not in CA, and therefore prices could vary widely.  When I was talking with a builder friend of mine about a parcel that we could build apartments on, he provided a very rough estimate of about $140k per door at his cost.  If I flat our hired him, versus partnered, it would likely cost about $175k/door.  This is Cincinnati, OH and not including land cost.