New Orleans New Construction Small MFam

[Shane Bracewell]

Good evening. Does anyone here have experience with new construction in New Orleans? I am looking for recommendations on possible lenders who can finance with construction loans, and would also appreciate any advice regarding estimating costs such as soft costs, hard costs, and miscellaneous fees. Thanks! 

[Mike Wood]

@Shane Bracewell  Your post does not give a lot of information.  I have built four (4) new construction duplex houses in NOLA, with another one currently under construction.   Assuming your are looking at 2-4 unit buildings, non-owner occupant, I would recommend talking to Gulf Coast Bank.  

Since you stated building in New Orleans, you'll have to find land that would allow for 3+ units, which is not common.  Land where duplexes can be built are pretty easy to find.

You will need 20-25% of total cost for down payment/equity for a construction loan.  

As for estimating costs, that really depends on what your trying to do. Duplexes can be build for around $85-100/ft2, assuming middle grade finishes, this does not include land or soft costs.  3-4 unit building would be a decent amount more on a $/ft2 basis due to the use of different code and the increased fire & safety systems.  Over 5 units is full commercial construction, and outside of my knowledge.