The extra rent 'bonus' from new construction.

[John Mason Wallace]

I'm looking at my first small scale development in the city of Charlotte. The most promising area is on Parkwood Avenue. It's in the middle of a triangle between Noda, Plaza Midwood, and center city. Rent's have climbed up in the area for some time, and new construction for the "missing middle" type of housing might be possible now.

The only issue is how much rent can I get over the existing stock of housing and what few apartments there are in the area. The rule of thumb I understand is new construction can enjoy rents 20-35% higher. Homes are renting in the area in a range from 1.00$ (deferred maintenace and habitat homes) to about 1.35$ sq ft for some home rentals (higher end finishes and cabinets). Do you think new construction will crack 1.40$ sq ft or more?

[Scott Patterson]

Do you have a current opportunity there?  Are you looking to build new houses there and rent them?  or building apartments?