Developing a 40-60 Unit Apartment Building CO - Seeking Guidance

[Jake Andersen]

The project:

We are developing a 40-60 unit apartment building in the mountains of Colorado. Property values in the area are high...so are construction costs. We are exploring options as far as straight rezoning in High-Density Residential or working through the PUD process to gain an additional 20+ units. 40 are use-by-right within the zoning. We own the land free and clear(approximate value 2M). We are considering modular or traditional builds.

The problem:

My partners and I manage a portfolio of property that spans multiple states and a variety of property types. We have never developed a multi-family property. I am seeking guidance in this process. Specifically in creating a proforma to determine which of the available size and construction options makes to most sense from a risk/return perspective. I am unfamiliar with where to start and how to gather the information. I'm also interested in general knowledge of the multifamily development process(which loan vehicles may be best, which pitfalls to avoid, etc.). Anything helps. Thank you.

Happy to discuss project location and specifics in private messages. Thank you.

[Karen Margrave]

Being inexperienced and putting together a project that big, I would suggest you hire a consultant with experience in developing a project of that size. A cost of mistake on a project of that size would easily cover the costs of hiring someone that is experienced. As with everything, check references, past jobs, etc.