02-27-2023, 03:16 PM
(02-27-2023, 02:26 PM)jeffster Wrote: As I mentioned in the post you responded to. Why are units cost close to 1/2 million? There is no way this is the true cost, and money is going somewhere. That somewhere is where it shouldn't be going....
A big chunk of that is the cost of the land. Suppose you are paying $5M an acre outside the core: with an FSR of 2.0 that's about $60/sqft for just the land purchase, probably more like $100/sqft once you account for the common area in an apartment building. And a surface parking space will cost probably $20K. Then you have planning, cleanup, permitting, excavation and construction, none of which are cheap.
Still, I am skeptical of the $500K cost. What exactly is that for?