Case Study - Development Model Assumptions Strictly Confidential
Table of Contents
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Schedule
Transaction Date 1-Apr-17
Sales Start 1-Sep-18
Construction Start 1-Oct-17
Construction End 1-Dec-18
% Sold at Commencement 35%
Units Sold/Month 3
% Closed at Completion 35%
Units Closed Per Month Post 4
Property Stats (Square Feet)
Gross Site Area 100,000
Deductions 25,000
# of Units 60
FSR GBA 80,000
Constr. GBA 80,000
Net Salable
Development Costs
Land $14,000,000
Building Costs 10,000,000
Servicing 1,500,000
Hard Contingency 5%
DCCs 225,000
Consulting & Warranty 700,000
Finance / Bank Costs - Other 225,000
Marketing 800,000
Overhead 850,000
Soft Contingency 5%
50% Commissions 4.5%
TOTAL
Pre-Construction Spending ($/month) 100,000
Financing
Loan to Cost 70%
Interest Rate 3.5%
Land Loan $5,000,000
Warranty ($/unit) 1,500