Seattle - Seismic Retrofit Assumptions
Apologies if the super specific forum posts are not permitted, but I figured this place is better than most to get inputs from fellow CRE guys.
We're looking at a potential acquisition in Downtown Seattle. Early early 1900's build, not completely un-reinforced (there is some steel in the building), 55 units, 5 stories.
We would deploy the Cap-Ex within the first 24 months during the bridge period, but I have no idea how to assume seismic retrofitting in the Seattle/NW market.
Would anyone with experience in this market be able to give me a general idea of what to assume? Can provide further details via PM if necessary.
There isn't enough specific discussion here of our underlying assets! Can I start by asking for more information on the building? I assume its residential? What is the existing structure? You said 'it has some steel'...are you referring to the slab rebar or structural columns? Foundations? Slab on grade? Wood Framed? CMU walls? how tall is the building? What is the construction of the floors between each level?
Correct, it is multifamily. I wish I could clarify on where the steel is, but this is all information from the broker.
To clarify, the building is 55 units from floors 2-5. The first floor has 3 retail units, and there is a basement with the electrical panels/etc. 51578 gross sqft. It's a 1910 brick clad structure.
I'm really just trying to get some type of assumption to work off of for now.
I mean there is no way in hell you will be able to quantify this. Seismic stuff really needs to be walked and get eyes on it. But if all you are looking for is level 999999 back of the envelope numbers, maybe you throw an allowance of like $25/sf?? Your pissing in the wind anyway. Even if you called any GC's they won't tell you anything because they need to quantify it. If you have a contact that could go walk it that would help. When you say brick cladding, be sure that it really is 'cladding' and not structural. Cladding is just for aesthetics. But if its unreinforced masonry brick then thats another story. Common upgrades would be shear walls, hold downs, wall ties, moment frames...
That is going to be very expensive. Do you have relationships with local GCs or any structural engineers that can review the geotech report and soil classification? They should be able to tell you the associated baseline regulatory requirements if they have that information, and the GC can price it. May include shoring up the foundations, strengthening shear walls to absorb more lateral movement, and other items that are far, far more expensive in a retrofit than new construction. I think you may be surprised at how much cash structural retrofit mods cost.
We have a general $15k/unit for structural retrofit in LA, so I'm aware of how pricey it can end up being. I have no relationship to GC's up there, which is why I'm coming to WSO. If all else fails I'll call around and ask, but my information is unfortunately limited.
I work in SF. Not sure exactly how it works as there are many variables. But I've seen it for an 1908 building with brick foundation be quoted at over 100k. 6 units building.
I know our firm bought an Industrial building in Seattle and the reinforcement costs ended up being significantly higher than was initially quoted. I'm pretty sure the acquisition did not price in even the initial quote.
That is a long winded way of saying you're not going to win the deal if you bake in the real cost of the retrofit.
There's no way anyone can guesstimate this as these costs are site specific to the land you're improving on. I'd talk to local GCs or a construction consultant to get an estimate on a per sf basis, but from my experience it's not cheap.
This, more or less.
Also, isn't the Cascadia region going to get wiped off the map in the next 100 years? ;)
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