All Forum Posts by: Mike Ritz

I am working with a partner to do our first multifamily investment. We have all the puzzle pieces but do not know exactly how they fit together. We have the feasibility study, land, potential for tax abatement from the city, investors interested in private financing for the down payment, and a HUD lender ready to work with us for the rest. We are looking to build a four-story, 60 unit market-rate development on 2.7 acres in Minnesota. We expect to do a mix of studios and 1-bedrooms with a few two-bedroom units with 40% commercial on the bottom floor (possible co-working space). We expect the build costs to be $10-$11 million but have not gotten any solid quotes yet. How much will we need to have for soft costs before we get the loan? Can architecture, engineering, and permitting be rolled into the loan? I am guessing we will also need to cover loan payments out of pocket for a few years before the development is complete and fully rented? Any advice would be greatly appreciated.

@Greg Dickerson and @Amber Gonion I am working with a partner to do the multifamily investment. We have all the puzzle pieces but do not know exactly how they fit together. We have the feasibility study, land, potential for tax abatement from the city, investors interested in private financing for the down payment, and a HUD lender ready to work with us for the rest. We are looking to build a four-story, 60 unit market-rate development on 2.7 acres south of Minneapolis. We expect to do a mix of studios and 1-bedrooms with a few two-bedroom units with 40% commercial on the bottom floor (possible co-working space). We expect the build costs to be $10-$11 million but have not gotten any solid quotes yet. How much will we need to have for soft costs before we get the loan? Can architecture, engineering, and permitting be rolled into the loan? I am guessing we will also need to cover loan payments out of pocket for a few years before the development is complete and fully rented? Any advice would be greatly appreciated.

I am looking for any insight into commercial and multifamily build costs outside of Minneapolis, MN. I have two separate commercially zoned lots that I would like to develop (one retail or other commercial, one multifamily). I am interested in connecting with possible partners or people with experience who might advise on building costs and potential pitfalls. Thanks in advance!