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Author Topic: Seeking Multifamily Equity Investor  (Read 108 times)

Offline TRAVISK

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  • Posts: 2
Seeking Multifamily Equity Investor
« on: October 15, 2019, 12:19:09 pm »
I am working on a large multifamily development.  Seeking an equity investor.  Looking for $8.66M on $47MM total construction cost.  I am contributing $800K in land value.  312 Units (13 Buildings)   Estimated 24 months st stabilization.  6.5%-7% CAP rate. 3-4 Year Term. CBRE feasibility study conducted.  Capture rate considered excellent. Top 10 school district in the state.

Offline Gold River

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Re: Seeking Multifamily Equity Investor
« Reply #1 on: October 23, 2019, 05:27:23 pm »
Hi,

    This hardly scratches the surface but you've caught my interest. What is your goal for this project?

Tell me about you and your experience relative to the project? Are you a developer? General Contractor?
Is this project turn key ready where permits can be pulled immediately or is it currently lacking plans and approvals?

Can you tell me about the real estate part of the project? The development part of the project? And the construction part of the project? Do you have a construction loan approval contingent on? Is there anything the city or utilities have to complete before or during construction offsite?

Unit mix, acreage, parking ratio, onsite / offsite work, hard and soft costs, assessment fees and permit costs, contingencies, site utilities, survey, soils report, etc?

Who will manage the property? What are your current rent projections?

I don't have time for a long list but this will get you started. You can PM this information to me through this web site? What state is this in?

                      GR


Offline TRAVISK

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Re: Seeking Multifamily Equity Investor
« Reply #2 on: October 24, 2019, 07:57:28 am »
What is your goal for this project?  Construct and Stabilize. 3-4 Year Disposition.

Tell me about you and your experience relative to the project? I have a small general contracting construction company. The last 4 years we will have averaged around $3MM in gross sales.  We specialize in multi-family interior renovations and capital improvements, as well as commercial tenant finish.  I have built spec homes in the past but I have no relative development history.  I have worked with several fund managers/PM's on our projects currently and in the past. After seeing all of the mistakes that are being made, my original goal was to acquire, reposition, re-stabilize and dispose of multifamily properties.  I had alway had my eyes open though for land I believe would be suitable for multifamily development as well. I came across some in an area that I believe is very well suited for multifamily.

Is this project turn key ready where permits can be pulled immediately or is it currently lacking plans and approvals?  We have not received entitlements yet.  I have engaged an architect and we do have a planet.  There are still revisions to be completed.  Land is currently zoned R1 and will need to be rezoned MF14.  It is the expectation of both my development consultant and architect (20 year city councilman of a neighboring city) that this will take 2-3 months for approval.

Can you tell me about the real estate part of the project? The land is under contract and I expect it to be closed by the end of the year. 

The development part of the project? There are 312 units in 13 building.  The property will be a mix of 1 and 2 bedroom units (765 sq ft and 900 sq ft).  It will be constructed in 1 phase.  1st 2 buildings to be constructed, then the clubhouse will be constructed and then the remaining 11 buildings are to be completed.  Site development and construction of all 13 buildings and clubhouse is expected to be compiled around 22 months. 

And the construction part of the project?  We have engaged the largest apartment builder in the city to complete the construction.  They are a 3rd generation builder and have completed over $1.2BN over the past 50 years.  They have given us preliminary budgetary estimates used for our pro forma and are working with the preliminary drawings to confirm those estimations.

Do you have a construction loan approval contingent on?  I have spoken with multiple lenders and I have received offers contingent on finding an equity partner.

Is there anything the city or utilities have to complete before or during construction offsite? Water and sewer upgrades were completed on this parcel of land in 2006.  There is still one study that will need to be completed by the water dept. but after speaking with city engineers, it is believed that the current utilities are more that adequate.

Unit mix, acreage, parking ratio, onsite / offsite work, hard and soft costs, assessment fees and permit costs, contingencies, site utilities, survey, soils report, etc? I can send you the pro forma, civil drawings, architectural drawings and feasibility study with this information if you send me an email to [email protected]  Soils report has not been conducted yet.  There is development within 200' of the property though so do not expect negative information there.

Who will manage the property? We will be utilizing a national property manger with experience leasing up new properties.  What are your current rent projections? $1.22 PSF.

I don't have time for a long list but this will get you started. You can PM this information to me through this web site? What state is this in?  The property is in Blue Springs, MO, a suburb of Kansas City city with a population of 57K.

I have engaged CBRE to conduct a feasibility study of this development.  They determined that market capture rate for this development to be excellent and for it to absorb 14 - 18 units per month. They believe as each building is constructed, it will be fully occupied within 2 months.

Development consultant/attorney has been retained for this projects.  She is VERY familiar with this area and has worked with the city and head of planning in the past.

Civil engineer has been engaged and preliminary plot drawings have been completed.

Architect has been engaged.  He has drawn multiple plan sets and I decided to choose from those.  This saving will amount to around $200K.  He is currently working on renderings to present to The City.

Land is under contract. I expect to be closed by the end of the year.

We have met with Planning and development heads from the city for a pre-development meeting to discuss the project.  They are all very much in favor of this project.  We have another meeting planned for Friday 10.25.19.

Construction company has been engaged and is currently working to firm up their numbers.



 




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