Brooklyn Communal (Owner-Occupant Built) Apartment Project
All- I’m interested in joining with 2 (or perhaps 3) others to build an “owner-occupied and built ” 3-unit apartment building. We’d agree on a site and basic layout and of course share the build cost. I’m currently looking at a 50×100 R6 lot in a somewhat under-developed part of Bedford Stuyvesant – just east…
All-
I’m interested in joining with 2 (or perhaps 3) others to build an “owner-occupied and built ” 3-unit apartment building. We’d agree on a site and basic layout and of course share the build cost.
I’m currently looking at a 50×100 R6 lot in a somewhat under-developed part of Bedford Stuyvesant – just east of Clinton Hill / Fort Greene. In some ways the location is a compromise – certain amenities aren’t in place yet. But there is a much improved G-train nearby. And the street is bright, quiet, and safe.
My idea is to build 3 stacked duplex-mezzanine units (height permitting) with frontage of 25 feet. I call this “Phase 1â€. Approximate unit size: 2000 sft. Approximate cost per unit: $630k. Note that these are very preliminary estimates.
Each owner-buyer contributes a deposit that would go to financing the project. This deposit would eventually be treated as a downpayment for mortgage purposes. The owner-buyer mortgages & purchase cost of the apartments would “take out†the full cost of the land (all 50×100 sft).
Phase 2 – the other 25 x 70ish feet of buildable area – would be built and sold later as and when market conditions improved – as a cost offset to the owners and potentially yielding a return to an outside investor…
Since Phase 1 takes out the cost of the land, Phase 2 is a high margin project – benefiting the owners. There is little to no carrying cost for the temporarily unbuilt land. Phase 2 would build smaller units to increase yield.
If interested, I’m happy to discuss project costs and other important items and issues. (keithan@kgdevllc.com). I’ve discussed many of these issues with architects, lenders, and attorney and continue to have discussions.
Finally, I am pretty detail-oriented with respect to the design, layout, and materials – and I lean modernist. And I’d like to find some roughly like minded individuals who are interested in this type of arrangement.
Some design ideas that I have in mind are:
* double height living area with over-looking mezzanine
* floor to ceiling windows with “hidden” mullions
* central HVAC (maybe forced air combined with ceiling fan for convection and “smart” thermostat)
* concrete super-structure, perhaps with exposed concrete interiors (@ owner-buyer’s option)
* gas hot water (each unit)
* big fan of Poliform, Hans Grohe, Boffi, etc.
Anyhow, enough of my rambling. If interested, contact me at the email below.
Best,
Keithan
keithan@kgdevllc.com
Thanks. Happy to update the forum on progress.
For those who may be interested, I’ve an existing relationship (for years now) with an exceptional construction management firm – mitigating GC (general contractor) and subcontractor risk significantly. I’ve also working relationships with accomplished architects here in NYC.
I should also mention that ground up construction is often more cost effective than renovation / conversion / gut rehab. Redoing Mechanical-Electrical-Plumbing (MEP) in an old building is wretchedly expensive – to say nothing of other structural or cosmetic upgrades. It’s often easier and cheaper to simply plan and do it right the first time.
Anyhow, thoughts are welcome. Interested parties are even more welcome! (Smile.)
Kind Regards,
Keithan
keithan@kgdevllc.com
While I’m not personally interested, I like the fact that you’re trying to find investor/partners on this website. It would be cool if more folks pitched real estate proposal on this site like you are.
I still think you’d be much better off financially buying a vacant rundown building that needs a total rehab than building from scratch. You could always build an extension which of course adds value.
Unless you’re an experienced builder or very rich, I wouldn’t do it and I’ve been a landlord/building manager in NYC for years.
You can be plenty creative renovating an old building and spend half what you’ll spend building new. Unless you get incredibly lucky, you’ll get ripped off beyond your wildest imagination.
But good luck to you. Please keep us posted on your progress.
Iron-
I appreciate your comments. Here are reasons to build:
1. Building to one’s own spec is its own reward (prime motivation).
2. No developer margin to pay.
3. GC charges / construction costs provide favorable negotiating opportunities as well. Consider the following economic fundamentals:
-building permits citywide (worldwide, even) have plummeted.
-further, nearly every commodity on the planet is cheaper this year than last (including steel – and when steel declines, concrete declines.)
-labor and land cheaper as well.
4. finally, yes, Phase II should be high margin – if you consider land to have been “paid for” by Phase I. (Bonus)
Anyhow, I can be found at keithan@kgdevllc.com if interested.
Keithan
What type of tools do you have? Are you going to rent a black people remover, or do you already have one?
Sounds pretty cool, but you definitely need iron balls to take on a project like right now.
Despite the potential upside of selling units in phase II in the future, it doesn’t sound as if the cost of construction is necessarily worth it for phase I.
I think purchasing an existing multifamily building in Bed Stuy and completely renovating it along with a couple partners would be much faster and a better bang for your buck.
If you really want new, there are so many new condos already built that developers are itching to sell, why not just negotiate hard with one of them and get a deal that way?
New build would likely take much longer than a big renovation project as well . . .