Salem/Keizer 112 unit new construction Pro-forma. Thoughts? (And AI rendering!)

[Chris Blackburn]

This is just an update and info how we put this project together.  (We are fully funded, we are keeping it and we do not need any investors) leasing is going well.  (OK, and a little celebrating our first lease)

(Note, the second photo is AI and is SUPER easy to do, but yes, AI)

We started this project 2.x years ago, buying a shovel ready project. (do not believe them). 1+ year later, we got to the position of being able to buy the permits.   When we started soliciting investors, interest rates were 4.5%.   By the time we made it to construction financing, our rate somehow moved to a 6.5%.   

Our model is a 30/70 split of equity and our team signs on the loan, investors do not.  

These are classic 3 story walk ups, we. have a club house, a park behind the units, garages and EV charging ( will have another post on this)

These were built with a modern look and the 3rd floor has 12' ceilings.   

Check out our pro-forma,  let me know how your project differ... We are the developer and contractor on this (plus capital for land and entitlements).   I think we could have done more 1 bedrooms as there seem to be too many 2 bedrooms on the market.  The 3 bedrooms should do well with the huge park behind us, but time will tell.

Note, I know a lot of developers do not share this data, but if others can learn along with me, it can make us all better.

We expecting rates to drop in the next 2 years and are planning on returning capital to the investors under a 30 year fixed HUD loan. If they get most or all of their capital back and still retain ownership, we have done a good job and they should be happy.