I Want to Develop A 50-75 Unit Apartment Complex

[Asad Shaikh]

Who has been involved in ground-up apartment construction? I anticipate the land parcel I'm looking at (based on zoning) can accommodate between 50-75 units. I know there are multiple costs involved- from the land acquisition,to any city rezoning/permitting fees, the site and utility prep, architectural plans, and actual construction of the units. Per my assessment, this is a C+ area that has B potential with the right development.

The land is not listed online, I found it for sale by the owner. I went to the city hall to pick their brains about what might work best on this parcel (they took me seriously even though I indicated I was new to this), and they suggested that any low-income housing would be rejected- and the best way to get proposed plans to go through would be by building a product that appeals to young professionals & graduate students (location is super convenient to local university.) They indicated anything that produces rents under $1000 wouldn't be acceptable.

 I wanted to chat with someone who has actually done this & pick their brain on costs to build etc. How much per sq ft on construction for basic units, mid-grade, high end etc? (I'm in Florida if that helps.) I even think there may be opportunity to do some mixed-use space on the first floor, most likely just small rentable office suites for professionals (think lawyers, CPAS, real estate agents etc.)

(PS. This would personally be my first project ever. I have a money partner with good banking relationships- he has acquired and flipped many value-add strip malls & gas stations etc.)

[Jay Hinrichs]

seems to me to be a big project to start on.

I have had two properties that I wanted to build 100 to 150 units.. on.. by the time I got through with construction cost and insurance issues we abandoned it.

also the amount of equity and experience needed will be huge to get a loan.. unless your money partner is putting up significant cash.. banks just don't do these big build projects without VERY experienced operators.  I would be shocked if you could pull this off from a lending stand point personally... Super high risk for the lender.