The word on the street is that 28 2nd Place has found a buyer, at $2.2M, or $300,000 below current ask of $2.5M. $2.2M works out to about $366 psf. Not bad for an owner/user. Way too high for redevelopment purposes though. As you can see on our survey page, estimated rehabilitation costs for this property are $471 psf. Combine that with land/bldg acquisition price of $366 you end up with an end product costing you $837 psf. Also, as a reminder, our rehabilitation costs include a FIXED fee for our development management services, which is rare. Any other developer would be pricing in a profit on top of their compensation for services, which would yield an even higher end-user price. All of the homeowners that we are working with think that is too high a price in today’s market. Our survey is indicating a desired market value for finished product that averages $595 psf. Current circumstances are a great outcome for listing broker and seller as an owner/user will always pay a premium over what a knowledgeable and experienced developer would be willing to pay. We’ll watch this until it closes.
Potential Opportunities
