The structures that are being built are 2 mixed use, 10 story structures. The lot will be 25,000 SF per phase with the bottom five floors using 15,000 SF and the top 5 floors will gross 12,000 SF making the gross area 135,000 SF and net area of 115,500 SF. From ground level they will look like two separate yet related building but underneath the parking structures will be connected giving 20,000 SF on each level for the 262 parking spots total that are necessary for tenant, visitor and commercial parking. The buildings are set to be constructed separately a year apart. An assumption made is that the second building will cost approximately 20% more than the first building. Since the units are a loft concept an extra foot in height has been built into the projected costs. The first 5 floors have been estimated with a brick veneer and the top 5 has been estimated as steel and glass.
To compensate for the projected 20% inflation between the two phases, the second phase units have increased on average 15%. With the commercial space on the main floors on both buildings, they are there mainly to create needed social infrastructure in the area to create demand for the units. For the most part income from the commercial space is immaterial. The space will be leased to a company who will subsequently sublease it out. It is projected that this project will last 5 years. Even after imparting a 12% discount rate, the profit in the end is $4,888,953.16. All assumptions and figures are put together on the next three pages
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