@Robert Ellis. Thank you for your analysis. You make some great points. We are about 75% done and currently may have it sold to a large affordable housing group. (Using traditional affordable housing, this project would have cost $400,000 per door, so the potential savings to the taxpayers is significant) Robert, did you look at the proforma? We cash flow fine with a right size loan. There is a significant return on a sale. As far as rent rates, we are very familiar with what the market is. Would would like to charge more? Yes, but the market currently does not support it. New construction may be different here than in Ohio. We just sold a 40 unit complex with similar numbers for $10M or $242,000 per door.
https://www.costar.com/article/184572665/multifamily-propert...
The cost to build an apartment in Oregon varies depending on the type of construction and location. For affordable housing, the average construction cost is generally lower than market-rate projects but still substantial due to various factors such as labor, materials, and compliance with affordable housing regulations.
The cost per door, or per unit, in affordable housing projects can also vary widely based on the specifics of the project.
The easy answer is simply a 240volt plug on the wall. Cheapest and most versatile. That’s easier for your tenant than you installing a Tesla connector and they have a Chevy or a Ford. Or installing a j1772 and they have a Tesla. You could also buy the new Tesla universal charger that has both in one unit. That way you don’t have to coordinate with anyone. Just have your electrician wire it to power. No software. Only downside would be if you wanted to rent some garages without including charging.
If you were going to charge then I’m sure Chargepoint has a system (they run the chargers at the local casinos and can be set to free or charge per kw or per minute.) I know Tesla has a pretty sweet setup, but they are usually set up in common areas not in each garage.
I believe @Bill B. is much smarter than I am. (I think he is right) Even if they made a simple outdoor charger with a simple code for your resident, (Bluetooth app on your phone). So far installing Blink has NO ROI or benefit. 5 units, no Rep showing us how it works or suppport. They told us to pay them more money and we can see how much electricity it uses? So, now to understand if there is a benefit and to determine a cost I get to give them more money after spending $35K. A company that actually offers some type of service will mop Blink up. I will reach out to Blink again and see if there is an issue on my side. Maybe they cater to the government and are used to just spending tax payers money with no responsibility. (Note, we did get a grant for these to cover some of the costs, but spending government money (even if it is free) with out benefits is irresponsible and against my code. So now I have spent my money and the Gov money. (which technically is still my money but a smaller slice). I asked for a slick opportunity to give my tenants free charging for a year, instead I have been offered the opportunity to improve Blinks business model to apartment owners. Challenge accepted, with or without Blinks help.
Thoughts on this commission? Too rich? One more layer?
Here is what one of my 4 AIs say:
The commission structure detailed in the image for a real estate transaction involving a property valued between $30M and $40M is as follows:
To evaluate whether these commissions are fair for a 112-unit apartment complex valued between $30M and $40M, let's compare them to typical real estate commission rates for large commercial properties:
Conclusion:
The commission structure provided in the image appears to be fair and within the typical range for large commercial real estate transactions. The use of a flat fee for higher-value properties is a common practice and can be beneficial in ensuring transparency and predictability in transaction costs.
Well, we went with Blink on our new 112 unit complex in Keizer Oregon.
I am going to hold my current comments until after I meet with the rep. So far, nobody has shown how it works or what billing is or cost of electricity.
Yes, sharing our actual costs, we need more housing but also letting people get past some of the big unknowns. Sorry about the clickbait. Here is our current budget... We are on the West coast. (Not CA). How does this compare
with other projects? We are the developer and the GC, (yes also took the 4 years to get it entitled, oh yea, also the cost
for all the entitlements. We are pouring foundations. Maybe photo updates. The cap rates are just for place marks, interest rates
will help. Site is flat, all funding in place... we are going building. I should share the capital stack, not pretty but gets the job done.
A 5 year old USDA loan for an assisted living facility for $10M. This loan is in place, $300,000 loan guarantee fee to USDA for 70% guarantee. $7M. Do you know if the loan is assumed, that the guarantee will follow with the new entity assuming the loan? I was under the impression that any change in loan guarantor would NOT allow the loan guarantee to follow. If anyone has data or can show me how USDA Rural deals with this, it would be helpful.
We are finishing up a 112 unit project in Oregon. (3 story walk ups).
We get the opportunity to engage with PGE for our power company.
We have walked through a number of EV charging solutions but they seem to not understand the process.
I want something convenient, easy, and provides some revenue (this may be asking too much). We have garages that we offer unlimited charging for the charger, garage and unlimited charging for $275 a month.
Maybe it is just me and I need to look at it differently. In the past people had "laundry rooms" and it was a revenue source, am I looking at this the same way? I just need to pay for this, let the EV company handle the issues, (even though I have to buy the chargers) and just treat it like a normal washer and dryer in the unit that most people expect at this level?
I am very pro EV and electric vehicles, we want the tenants with these cars. (New Tesla in Oregon is the same price as a Suburu wagon- with the tax discounts)
Would love to hear your experience!
Here is what PGE offers for Mfgs.
Ready to get started?
Below you’ll find contact information for each EV charging vendor, so you can reach out to them to research their qualified chargers, ask technical questions, and get pricing.
I can help with that. Here's the list with emails and phone numbers removed:
We are finishing up a 112 unit project in Keizer Oregon. Would be happy to share our numbers with you. These are 3 story walk ups. I will tell you the average price per door for LIHTC homes in Oregon is about $472,000 per door, (VS our price of $210,000 per door).
https://www.oregon.gov/ohcs/hsc/Documents/meetings/2023-JULY-07-HSC-Meeting-Packet.pdf
So in summary:
Peaceful Villa (Portland)
College View Apts (Bend)
Ollie Court (Eugene)
Pacific Flats (Phoenix)
Phoenix Corner (Phoenix)
Rand Road (Hood River)
Average percent of project funded?
Here are the calculations for the average percentage of project costs funded by LIFT and other sources across these 6 affordable housing projects:
Project Name | Total Cost | Total Funding | % Funded
Total Cost: $281,050,250 Total Funding: $103,355,000
So based on the data provided:
This indicates that on average, the LIFT funding and other public funding sources are covering about 37% of total development costs. The remaining 63% is likely from private financing, equity, and other sources.
The Oregon Housing Stability Council has approved spending more than $100 million to build nearly 650 affordable homes in urban and rural areas throughout the state.
The council approved funding requests for 10 affordable housing developments during its Friday meeting, prioritizing requests from communities that lost homes during the 2020 wildfires. The $103.5 million approved is less than half the amount requested by developers around the state.
Andrea Bell, director of Oregon Housing and Community Services, said the grants are a crucial step toward addressing Oregon’s housing crisis. A 2021 study estimated that Oregon needs to build more than 580,000 homes by 2040, and nearly half of the new homes need to be affordable for people earning less than median income.
“Lack of affordable housing is a top concern for many people across the state, and we must continue to pursue measurable progress,” Bell said in a statement. “These investments will help improve the futures and quality of life for thousands of Oregonians in rural and urban areas of the state.”
The projects – apartment buildings and townhouses – are spread across the state, from central Oregon to the coast and from southern Oregon to Portland. Two of the approved projects are in Phoenix, a small Jackson County city devastated by the 2020 Labor Day wildfires.
Pacific Flats, a 72-unit apartment complex targeted at families, will receive $13.5 million. The new complex will have a mix of two- and three-bedroom units affordable for families earning between 30% and 60% of the median income in the area, or as much as about $48,500 for a family of four, under current income limits set by the federal department of Housing and Urban Development. Construction will start in February.
The other Phoenix development, Phoenix Corner, received $15.3 million to build 88 apartments on 4 acres of land. It will have a mix of one-, two-and three-bedroom apartments affordable for people earning up to 60% of the median income, and construction will begin in April.
The largest grant is for the Gussie Belle Brown Apartments, which will receive $17.9 million to build 120 units in northeast Salem. It will include 24 one-bedroom apartments for people earning 30% or less of the median income – about $17,000 for a single person or $20,000 for a couple.
Most other units will be two- or three-bedroom apartments for families earning up to 60% of the median income, or just more than $50,000 for a family of four. Construction will start in June 2024, and the developer plans to add an on-site child care center in a second phase.
Rand Road Affordable Housing in Hood River will receive $15.1 million to build townhomes and apartments on a 7-acre site. The development will include 22 three-bedroom rental townhomes, two three-story apartment buildings with studios and one-, two-, and three-bedroom apartments and a four-story apartment building with an elevator.
All units will be available for people earning up to 60% of the median income, which in Hood River County means a limit of just more than $37,000 for a single person and $53,000 for a family of four. Construction will begin in November.
Estacada, a rural community in Clackamas County where homes burned in the 2020 wildfires, will receive $11.9 million to expand an apartment complex that received funding last year. The original development had 36 apartments, and the second phase will have 48. They’ll be a mix of two- and three-bedroom units available for people earning up to 60% of the median income in the area, almost $68,000 for a family of four.
Eugene’s Ollie Court apartments will receive $11.3 million to build 81 affordable units and an early learning center on the ground floor of one of two four-story buildings. Construction will begin in July 2024. The apartments, a mix of one-, two-and three-bedroom units, will be affordable for people earning up to 60% of the median income, which in Eugene means limits around $35,500 for a single person and $50,500 for a family of four.
Bend will receive $8.3 million for College View apartments, a pair of new apartment buildings across the street from the Oregon State University-Cascades campus. It will include 59 total units with one, two or three bedrooms. All will be available to people earning up to 60% of the median income: about $40,000 for a single person or $57,000 for a family of four. Construction will begin next July.
Rivergreen Apartments in Corvallis will get $5.6 million to expand an existing apartment complex and add 24 new units available for people earning up to 60% of the median income – about $41,000 for a single person and just less than $59,000 for a family of four.
The two smallest awards, $2.3 million each, are for small developments in Depoe Bay and Portland. Depoe Bay Townhomes will have six duplexes, with 12 units total, to provide housing for wildfire survivors who lost their homes in 2020. Construction will begin in March.
The Portland development, Unicorn Bed, will have 13 two-bedroom apartments in two buildings on an Alphabet District lot in northwest Portland that takes up one-tenth of an acre. Construction will begin in September.
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.
NFA, (Not financial Advice). But this is what/who I have been following. Pretty simple, not very diversified, if you want more security, just put it in an index fund (good luck outperforming inflation). The person I have a lot of respect for is a taking youtube head. James with Invest Answers. He has a patreon. He is essentially all in on Telsa, BTC (Bitcoin), Solana. He is retired from the financial world and I like his process (Does not work for most people). I do believe technology is the only thing that can move faster than inflation. (Commodities and RE just keep up with it, if you are not raising rents 6%+ every year, there is an argument that your spending power is going down every year. I have a 4 legged stool, not excited about our government spending. BTC as an option gives a lot more freedom from the chains of fiat currency than most other options.