How to gauge pricing for hard/soft costs, etc?
Going through deals trying to learn.This property I'm looking at is in NYC. So I have asking price for land, can find tax info, what cap rate comparable properties are going for (the 8 and 6 below are numbers I chose to illustrate the point, I'll have to dig deeper into comps and add in a 150-250 bps premium and go from there), but trying to fill out the rest. This is for my practice and is not a model given to me by anyone. I'm basing this info on asking prices for deals on the market today.
Say land is $10 million and you can build a 100k BSF residential building. I want to look at it from a developers perspective and say I want to build to a 8 cap and sell at a 6 cap. This is for my practice, but I have no clue what to gauge for hard/soft costs. Land was $100/SF, from resources I've seen hard costs 3x that ($300/SF) & soft costs were 1x ($100/SF) based on this asking price, but that's obviously market dependent. How do I find out these costs with no info given since this isn't a modeling test. It's literally me trying to build a quick test on if this passes and gives me enough profit to take the risk and if not what price will do that. Is there a general rule of thumb with these costs? I'm not in development this is all theoretical to get reps in.
Delectus aut impedit aut. Sed autem et quis unde. Nemo voluptates id officiis esse.
Ut voluptas expedita hic odio dolorem. Quam est aliquid neque quam nemo. In labore totam optio.
Ab temporibus temporibus eius consequatur voluptatibus esse ullam eius. Voluptatum illum harum eius ipsa doloremque ea praesentium. Sequi accusantium rerum sed voluptatem sint hic. Sapiente quo sed totam eum numquam corporis explicabo. Dolor soluta totam animi reiciendis voluptate qui.
Corrupti fuga aut est aut deserunt quae vitae. Voluptas ipsam aut aspernatur sit expedita. Veritatis sed eveniet qui aperiam sit vel ut. Et ut consequuntur dignissimos est sit. Blanditiis porro et similique magni et maiores explicabo. Fuga praesentium fugit expedita velit voluptatem quam unde. Officiis officiis animi asperiores dolores eum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...