|Land cost per unit for senior cohousing||<– Date –> <– Thread –>|
|From: T LOFFT2 (tlofft2hotmail.com)|
|Date: Wed, 5 Aug 2009 10:15:47 -0700 (PDT)|
Hi, Dennis, I'm glad to see you all are sticking with your project. The value/cost per unit must be compared to the Market Value being received. Some sites will appear to be more expensive than others because they have better attributes. This is often a fault of appraisers (more often, a fault of sellers) in valuing land for which they don't fully evaluate all the attributes of value included in a 'comparable' property. For example, a site may or may not include, and therefore may need additional $$ invested to comply with, local county/municipal requirements: 1. Sewer tap fees and/or capacity charges; sewer line extension design, engineering & construction costs; sewer line public works agreement legal fees, easement costs, permit and inspection charges; 2. Water tap fees and/or capacity charges; water line extension design, engineering & construction costs; water line public works agreement legal fees, easement costs, permit and inspection charges; 3. Road and access impact fees; extension design, engineering & construction costs; road construction public works agreement legal fees, easement costs, permit and inspection charges; 4. Storm water management impact fees, design, engineering & construction costs; public works agreement legal fees, easement costs, permit and inspection charges; 5. Other impact fees chargeable, such as for library, schools, police, fire services, affordable housing, public transit, reforestation, water shed protection and conservation, etc. If any or all of these are already paid for a site, then they are an added value and part of the cost saved in the development budget; If they are not yet paid, they may add up to more than the raw land value per unit itself. If none of them have been paid and all of them have to be negotiated with the jurisdiction and paid out of the development budget, then the site is simply raw land and not an approved site, and certainly not a developed or buildable site: So land value is considered differently, at least by me, at six principal stages: the question is: At what stage is the site on which you are negotiating value?: Stage 1: absolute raw land, not in the comprehensive plan for development: (almost the worst condition; even worse if it's a brownfield site and needs contamination remediation); Stage 2: Comprehensive plan category permits development subject to zoning; Stage 3: Zoned for development desired; needs site design and permitting; Stage 4: Site Plan & Utilities Plans approved; no fees paid or improvements in place; Stage 5: All permits for land development approved and fees paid, but no site development yet; Stage 6: All on site and off site development improvements in place or under bond for go-ahead; ready for building permit. The corollary aspect of value is when the Seller expects to get paid, and under what conditions of warranty of getting permits to proceed to construction; the earlier you make any payments for an unapproved site, the longer your group has to pay interest and debt service on any borrowed money. Best wishes; Tom Lofft Liberty Village, MD Date: Mon, 03 Aug 2009 14:04:53 -0400 From: Dennis Jay <dennisjay [at] mac.com> Subject: [C-L]_ Land cost per unit for senior cohousing To: cohousing-l [at] cohousing.org Message-ID: <16635EF9-F47F-4E03-9FB6-8F910543E0D1 [at] mac.com> Content-Type: text/plain; charset=WINDOWS-1252; format=flowed; delsp=yes Greenhouse is a forming senior cohousing group in Annapolis, Md. We propose 32 units on a 2.3 acre site, of which only 3/4 of an acre is useable because of environmental constraints. Because of its proximity to Washington, D.C., there has been only a modest decrease in property values here. This is a great sustainable site with transit, shops and services a short walk away, but the property is very expensive. Land cost at $51,300 per unit is roughly double the recommended 15% ratio for cohousing, and we are currently negotiating with the owner to avoid a further increase to $62,500 per unit. And because this is senior cohousing, our units are smaller than usual, averaging just 682 square feet. Preliminary cost estimates are as follows: Studio ? size: 504 sf ? land cost range: $138,000 to $152,000 1 BR ? size: 672 sf ? land cost range: $184,128 to $204,288 2 BR ? size: 756 sf ? land cost range: $207,144 to $229,824 2 BR+ ? size: 1008 sf ? land cost range: $276,192 to $304,416 Prices so not include common house outfitting. We would appreciate any comments on the feasibility of these prices ? good, bad or indifferent. Many thanks, Bob Corbett Dennis Jay Greenhouse Cohousing Annapolis, Md. _________________________________________________________________ Get free photo software from Windows Live http://www.windowslive.com/online/photos?ocid=PID23393::T:WLMTAGL:ON:WL:en-US:SI_PH_software:082009
Land cost per unit for senior cohousing Dennis Jay, August 3 2009
- Land cost per unit for senior cohousing T LOFFT2, August 5 2009
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