Quote:
Originally Posted by trueviking
i don't understand how a residential building with 100 units (half of them student residences) could cost $27 million. It's $270/square foot....
That's way higher than what a developer driven residential building would cost. Where is that cost coming from?
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Honestly, it's complete incompetence up and down the line. There's no actual developer involved in this project - there's Sherman Kreiner who's more or less walked the plank on this project and the university's development arm which has never employed anybody who hasn't worked almost exclusively in the public sector. That said, $270/ft including soft cost and land - if it does - is not wildly out of line for a project of this nature. That's why rents in these newer rental builds are being projected out at $2.10/ft; it's the only way to make it work if you buy the land undervalued and take on the entitlement risk. Whether they'll get them, who knows.
But this one is slated to be 'affordable'! This building will literally lose money year to year and hence the subsidies in place.