Building a 200 unit Multi-Family Complex

[Robert Crowley]

In order to build a large (200 unity) Multi-Family housing complex how much land do you think I need? What might the costs of building be for such a project? I'm trying to figure out how to calculate a ROI but I need to grasp how much it is going to cost not just in land, but in building, permits, taxes, etc. and how to make it worth my while. Any knowledgeable input would be appreciated. I am a real estate agent helping a client with this so please don't just tell me to go buy one already built, although I'm going to look into that as well.

[Chris K.]

@Robert Crowley

My company does a lot of large-scale construction projects (e.g. mid-rise hotels, mixed-use buildings, etc.) on the east coast. For these projects, they are spending seven to eight figures just on glazing and window items. The actual project costs are easily +$50 million and above. 

If your client is really interested in getting into this world, they need to start talking to architects/developers/GCs first. The construction cost can fluctuate drastically --- I mean by several millions --- depending on the design choices, construction materials, etc. You can easily spend a year or two just finalizing the numbers during the bidding process. 

If you want some names, I'll be happy to get you some referrals. Send me a PM. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.