Multifamily Construction Cost Projections?

[Craig S.]

Hello BP community:

I am under contract on some land that I am considering building multifamily on.

It appears I can build approximately 80 units on the land (based on permitted density), which could be more or less units depending on the exact style of units we would construct (one or two story, etc).

I just started my due diligence phase, but the first thing I need to do is better understand the financial feasibility for the project, and how the return might compare to other investments we have undertaken in the past, which have been mostly acquiring existing buildings and renovating, not new construction.

The land acquisition cost is relatively straightforward. Land purchase price / x units = land cost per unit.

The construction cost of the units is also relatively straightforward. Cost per square foot X square feet = construction cost per unit.

We would be installing a street and double stacking townhome style units on each side.

I part I don’t have experience with necessarily is how to better understand infrastructure and site work cost (road, utilities, excavating, etc. I know this can very widely and depending on soil type, etc. there can be a lot of changes.

Does anyone have experience with constructing new multifamily communities or homes, etc. that could help me better understand how to project costs on infrastructure/site work component?

Besides land, infrastructure/site work, and the building construction itself, am I missing any other major category of costs?