Hello everyone and hello from North Seattle. I have a single family home that is in a mixed-use area which currently allows for a 60' apartment building but will rezone to allow 70' in about 2021. The lot is about 6500 sq feet. Does it make sense to build an apartment building? I'm not a developer or investor by any means. How should I think about this?
Architect · Providence, RI · Member since 2016 · 258 posts · 195 votes
7y
Parking will be the big issue. That's a small lot. You might have 60 or 70 feet of height, but how many square feet of lot area do they require? Setbacks, lot coverage, FAR, and maybe other issues all contribute to what can be done on a lot.
Step 1: review your local zoning ordinance and see what it allows. Decide if your lot works, or is close to working. (you can always try for a variance).
Step 2: contact me for a Seattle architect referral. I have a good friend out there who's an expert in these zoning challenges and also does nice looking work.
Real Estate Agent · Seattle, WA · Member since 2014 · 87 posts · 39 votes
7y
Is the property in an urban village zoning? I know townhouses don't require parking spots if in an UV. Is it in an Opportunity Zone? Look around the area for comparable sized lots - has anyone done the same? Are they apartments, condos, or townhouses?
Seattle, WA · Member since 2017 · 275 posts · 223 votes
7y
A good area to take a walk and look for stuff that might fit on your lot other than more townhouses is the University district neighborhood west of campus between brooklyn and the freeway. A lot of older SFR boarding houses in that area are being replaced by stuff that sounds like what you are considering.
Developer · Portland, OR · Member since 2019 · 10 posts · 2 votes
7y
Hey @Robert Luu sounds likes like cool potential project.
Generally on a lot that size you go about 4 stories. You'll want to review max use on the zoning. You can go higher but then you start getting into some intense structural engineering with steel which will just up your price per sqft on construction. With 4 stories you can still go wood without blowing up your lumber package.
If the ordinance has some sort of IZ or the lot is within public transit, etc. Parking can be avoided.
If you do develop you'll want to run a financial model on the project with the potential development before spending too much time on it. Land, design, permits can always be used as an equity position on your con loan. Owning the land is half the battle so you sound like you're in a good position for a potential development!
Thanks for the notes everyone. @Mark, Any tips on running a financial model? I have a basic feasibility done from an architect...But to get the numbers, Is it just a matter of calling up each trade? Eg Architects, Contractors, visiting City Hall to get permit fees, Parking construction, etc. I dont know what I dont know so not sure what I would miss. Also, the financial models for Lending packages from Hard Money debt, to considering equity investors, etc is another beast! Any thoughts on moving it forward is certainly appreciated.