Land acquisition, construction and associated aspects of a proposed office condominium project. Site of the project is located in one of the most progressive areas of Charlotte, North Carolina. Interested parties should contact us here for futher information.
What is the anticipated total cost of the project, specifically land and construction, and how much can be placed down?
Estimated cost of the project is $3million dollars. Land is $750,000 and construction is $2million. Sales of comparable properties in the area are at about $225 s square foot. We plan to sell at around $200 to expedite presales. Expected revenue is $4.4miilion. Now it should be noted that this is for the shells. Any further construction would be build to suit. Therefore, we stand to make further profit.
AL
How much can you put down on the project? A lot more information needed…
$150,000 has already been put up on the project. That is to secure the land. Is it possible that we can put this project into two phases. One would be the land acquisition and the second would be the construction phase. We already have so pieces in place to do pre-sales of the office condominiums. This would make it easier to obtain financing/investors for the construction portion.
You can obtain financing seperately but lenders will only go up to 50 maybe 60%ltv on land alone. You will get to higher ltv’s by going for a acquisition and development(A&D) combination loan and avoid multiple loan fees and pts. Also most lenders will allow collateral in place of downpayment funds if this is an issue.
The tax value of the property is over $2million dollars. We are getting the property for about one third of that. If we can obtain the land can we then use the land to secure the construction portion? Secondly, we plan to do presales. Won’t our case be strengthened by having at least 25-40% or more of the project presold?
I started to send this reply before I realized that you said to email you directly.
Thanks
AL
If your buying the dirt seperately, then yes it’s 50% of the contract price. If your going to do the land & development in one loan, lenders will take the equity of the land into their calculations. And yes pre-sales will strengthen the deal.
I didn’t get a chance to take down your contact info, looks like it has disappeared…
Will you do JV?
How much is his own fund is the principal willing to invest ?
Do you have: Executive summary
pro forma
principal’s resume
lived in charlotte for eight years before moving to detroit. i am extremely familiar with the area, what part of charlotte. i am assuming south charlott, ballantyne, or univeristy area based on your post.
UNCC grad