Small lot development - Part 4
This is Part 4 of the Small Lot Development series. I want to share some information on the financial aspect of small lot developments. Each deal is unique and it is hard to generalize on cost and profit. The information provided here will give you an idea how a project achieves profitability. Please try to focus on the process of how developers create “value” through the development instead of the numbers themselves. Here are two examples: one ground-up condo and the other one rental conversion. Example 1 (ground-up condo): Existing 20’x100’ vacant land in a mid-block lot on a narrow street in the R7A zoning district. FAR: 4. Zoning floor area: 8,000 SF The plan is to build a 6-story boutique condo building with a 20’x65’ floor plate. There will be 6 floor-through units and each unit has roughly 1,050 SF saleable space (81% efficiency). Gross floor area 9,300 SF (7,800 SF 6-story + 200 SF penthouse + 1,300 SF basement). Front and backyard is 5’ and 30’, respectively. ...