Are you considering investing in real estate in Columbus, Ohio? Are you tired of looking at 50 year old or 100 year old multifamily with unfunctional design and overpriced? Tired of Columbus Ohio agents adding no value? We want to provide you with essential information about the costs associated with the Council Variance Application process for rezoning residential lots to construct a triplex ground up in Columbus OH urban core neighborhoods.

The City of Columbus is modernizing its zoning code for the first time in more than 70 years, calling it "Zone In."

A primary goal of Zone In is the provision of more housing options in more places. One way to impact housing affordability is increased supply. The current housing shortage means greater competition for fewer units, which drives up costs. The updated code addresses this in a number of ways. Whereas 80% of the current zoning along the corridors restricts residential development, each of the proposed districts allow a full range of residential uses by right.

Proposed districts also allow for taller buildings and market-driven parking solutions, both of which allow for more housing units. Housing capacity analysis undertaken by the Zone In consultant team found that the proposed changes have the potential to provide 88,000 additional units along key corridors over the next ten years. This is a dramatic increase over the potential additional units that could be expected with the existing zoning.Importantly, the proposed code also includes a height bonus allowing between two and four additional stories in four of the mixed-use districts. Eligible projects must participate in and meet the affordability requirements of the City’s Community Reinvestment Area program.

Where does this design come in? This is considered a micro designed apartment. There is no true definition of Micro housing but the target is market rate apartments with affordability, design, and density in mind which is our focus.

Micro Housing Design and Compact Living: Impact on Affordability

Lower Construction Costs:

Economies of Scale: Building micro-units can reduce per-unit construction costs due to smaller unit sizes and efficient use of materials .
Efficient Land Use: Compact designs maximize the use of available land, often resulting in higher density developments that spread land costs over more units .

Reduced Rent and Sale Prices:

Smaller Unit Sizes: Micro units, typically between 250-400 square feet, naturally command lower rents or sale prices compared to larger units, making them more affordable for renters and buyers .
Market Demand: There's a growing market demand for smaller, more affordable units in urban areas, leading to more competitive pricing for micro housing compared to traditional apartments .
Operational Savings:

Lower Utility Costs: Micro housing units generally have lower utility costs due to smaller spaces that require less energy to heat, cool, and light .
Maintenance and Upkeep: Smaller units mean less area to maintain, resulting in lower maintenance costs for both landlords and tenants .
Increased Supply:

Higher Density: Micro housing developments can increase the number of available housing units in a given area, helping to alleviate housing shortages and stabilize or reduce market prices .
Urban Infill Projects: These projects can efficiently utilize underused urban spaces, contributing to a higher overall housing supply in desirable locations without expanding urban sprawl .

We handle the entire process from start to finish from land acquisition, development and entitlement, floorplan design (already done for you), density, zoning meetings, contractor negotiations and construction, disposition or long term lease, financing negotiations, etc.

The typical numbers in our market right now (no guarantees, depends on lot size, lot location, finish levels that you select, etc):

Land: $50,000

Entitlements and rezoning from single family lot: $5500

Permits and build fees: $5000

Hard cost construction of 2004 square ft stacked triplex: $350,000

After repaired value: $550,000

Traditionally ground up multifamily three story walk up style apartments has only been available to developers due to the economies of scale, but we've designed a triplex which solves all of the above problem. Most of our investors are securing financing around 85% Loan to cost and 75% loan to value. We have more than 10 lenders we can recommend to consider depending on your experience, liquidity, credit score, etc. The majority are national lenders with experience in ground up construction and exit strategies as well so they are not only financing the construction but also facilitating the exit as the units are delivered and available for lease up.

Please reach out if you are considering new construction as an investment strategy.

Rob Ellis

Pink Development and Construction

614-400-8762

[email protected]