Acquisition of Lot and SFR for Demolition and New Construction of 5
Unit Condo in Santa Monica, CA
Acquisition Cost: $1.5 Million (SFR zoned SMR 2)
Demolition Costs: $60,000., Demolition Permit has already been approved
by the City
Subterranean Parking Deck/Grading: $165,000.
Apps/Permitting/Plan Review/Check: $77,500.
New Construction of 5 Condos: $2.25 Million – with S-IB could be
$1,700,000.***
Roof Top Decks Build out: $50,000.
Real Estate Commission: $600,000 Est. Sales Prices of $10 Million Sales,
NO COMMISSION on Affordable Unit
Price: $11.5 Million = 4 Condos @ $2.5 Million Each & 1 Affordable @
$1.5 Million**
Closing Costs, (6 Sides): $136,000.
Reserves/Developer Fees: $300,000.
Loan and Carrying Costs: $70,000
Loan Payments: $196,000.
New Loan: $3,200,000.
EQUITY REQUIRED: $1,800,000
Total Cost/Expenses: $5,404,500
NET PROFIT: $6,095,500.
INVESTOR SHARE: $2,098,425. Plus return of $1,800,000 Equity Investment.
**Uses Median and Low Sales Price Comps per Google and Realtor.com.
These
models could net a Higher S.P. per Square Foot. If so, add 20% ***This
Model assumes $250 per S.F. & $175 per S.F. Construction Costs for
affordable unit. If we use the S-IB Building Technology, Construction
Costs
are reduced nearly $500,000 which can be added straight to the Net
Profit
in this Model. Would also cut Construction time by 1/3rd AT LEAST.
Time frame: 21 - 24 Months
Time Frame using S-IB Building/Construction Technologies: 12 -18 Months
Let's talk about S-IB Construction;
Steel I-Beam Construction; Exceeds Local Construction Requirements, is
built on a track and rail type system. Built off-site in sections,
delivered to site and assembled like legos. Is stronger than "stick
built", can withstand Hurricane Level 5 force winds and goes up in
nearly half the time to 2/3rds less time than "traditional Stick Built".
Completed Project Examples;
The Point, El Segundo, CA;
https://thepointsb.com/
El Segundo is the Home of the Los Angeles Lakers Training Complex and
Facilities and the 1st Beach City/Community immediately South of LAX.
This massive project was built in just 11 Months and is now the Epic
Center and Community Gathering place for Summer Concert Series, 4th of
July Fireworks and "The place to be", which was non-existent in El
Segundo before this Project was built.