Small lot development - Part 5
In Part 5 of the series, I want to share eight (8) real cases on small lot developments, primarily in Harlem, a vibrant neighborhood in Upper Manhattan. Here is a summary of these cases along with their estimated returns. IRR was not calculated due to difficulty in estimating development cash flow as well as reversion value. Address Type Project Return Equity Multiple Devel o pment Yield 310 W 114 ground-up condo 32% 1.6x 215 W 122 ground-up condo 36% 1.8x 126 W 130 condo conversion 53% 313 W 121 ground-up condo 54% 145 W 123 ground-up rental 6.0% 255 W 136 rental conversion 5.9% 63 W 130 co-living conversion 5.9% 81 W 118 rental conversion* 5.3% 310 W 114 Ground-up condo: the site was a 26’x101’ vacant land in a mid-block lot on a narrow street in R7A zoning district. FAR: 4. The developer built a 7-story 8-unit boutique condo building with a 26’x67’ floor plate and an elevator. No front yard and 34’ backyard. Front and rear setback is 15’ and 10’, respectively. Total saleable s...