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  1. Please help me understand how the developers of the Boerum Hill lot can make a profit on this without putting up a cheap building?

    They spent $6M for the lot (not including taxes and transaction costs), which can create 12,000 sqft of housing ($500/sqft).

    Lets assume they are trying to get $1,000/sqft for the final product (either four 3,000 sqft units or three 4,000 sqft units) or $12M. Lets assume they need to make 20%+ returns over the two year project or $1.2M+.

    That means they can spend $5.8M in construction and minus transaction, financing, and realtor costs, which could be close to $750K-1M (maybe?).

    So lets say they have $3M-$4M for construction costs or $250 to $333/sqft…..

    Can a professional developer create a nice (high-end) product at $250-$333/ sq foot…. or are my assumptions all wrong?? or both?

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