- Joined
- Jan 29, 2008
- Messages
- 1,025
Hello,
I've come across an opportunity to purchase a parcel of land zoned for multi-family use here in Calgary. I've determined that the zoning would allow for an apartment/condo building of ~25,000 square feet, and it is in an established neighbourhood with a mix of multi-family and single family dwellings.
My question is, how do I go about valuing it as a piece of land? (There are currently structures on the land, and I can value them for income, but I suspect its value as land might be higher)
I can also determine what a condo would be worth in this neighbourhood, which gives me a bit of a baseline for what the land would be worth to a developer, but I think I would also need an estimate of construction costs, as well as a shrinkage factor. Does anyone have a rough idea of the range you could expect for condo quality construction in Calgary per square foot? Also, what would be a typical ratio of building area to rentable area? Some of that buildable area I mentioned above is going to go for common areas.
I would appreciate any thoughts on anything I may have missed. I wouldn't build the building myself, just hold it as an income property until I can sell it to a developer, but I want to get an idea for how the economics work so I can make sure it would make sense for someone to buy the land off of me.
Best regards,
Michael
I've come across an opportunity to purchase a parcel of land zoned for multi-family use here in Calgary. I've determined that the zoning would allow for an apartment/condo building of ~25,000 square feet, and it is in an established neighbourhood with a mix of multi-family and single family dwellings.
My question is, how do I go about valuing it as a piece of land? (There are currently structures on the land, and I can value them for income, but I suspect its value as land might be higher)
I can also determine what a condo would be worth in this neighbourhood, which gives me a bit of a baseline for what the land would be worth to a developer, but I think I would also need an estimate of construction costs, as well as a shrinkage factor. Does anyone have a rough idea of the range you could expect for condo quality construction in Calgary per square foot? Also, what would be a typical ratio of building area to rentable area? Some of that buildable area I mentioned above is going to go for common areas.
I would appreciate any thoughts on anything I may have missed. I wouldn't build the building myself, just hold it as an income property until I can sell it to a developer, but I want to get an idea for how the economics work so I can make sure it would make sense for someone to buy the land off of me.
Best regards,
Michael
