What are some development assumptions that you use for ground-up multifamily development?
I'm working to figure out what soft costs would be on a variety of deals we're looking at in the Midwest.
- Architecture
- Engineering
- Misc. Permits / Fees Etc.
- FF&E
- Other
Are there any general rules of thumb that you use to underwrite multifamily development (Ex. engineering is 3% of hard costs, etc.) (Unit count on the deals usually ranges from 100-500 units).
I think you should go with 2.87% for engineering and 3.68% for permits and fees.
Spot on this is what we use - 0.42069% of hard for FF&E as well
Only for multi buildings between 132 - 287 units
Thoughts on architecture? I've seen 5-6%
8% of TPC for soft costs, but if the deal isn’t penciling don’t worry just go with 7%.
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