Review Concept Box 16.2. The investor-developer would not be comfortable with a 7.8 percent return on cost because the margin for error is too risky. If construction costs are higher or rents are lower than anticipated, the project may not be feasible. The asking price of the project is $14,500,000 and the construction cost per unit is $82,600. The current rent to justify the land acqusition is $2.4 per square foot. Required: a. Based on the fact that the project appears to have 9,360 square feet of surface area in excess of zoning requirements, the developer could make an argument to the planning department for an additional 10 units, 250 units in total, or 25 units per acre. What is the percentage return on total cost under the revised proposal? Is the revised proposal financially feasible? b. Suppose the developer could build a 240-unit luxury apartment complex with a cost of $141,500 per unit. What would such a project have to rent for (per square foot) to make an 8 percent return on total cost? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Based on the fact that the project appears to have 9,360 square feet of surface area in excess of zon developer could make an argument to the planning department for an additional 10 units, 250 units acre. What is the percentage return on total cost under the revised proposal? Is the revised proposal not round intermediate calculations. Round your final answer to 2 decimal places.) 1. Goal: To provide a preliminary development plan analysis to determine whether an apartment project can be built on a specific site in accordance with regulatory requirements and leased at current rental rates in order to justify land acquisition. 2. Site: 10 acres or 435,600 square feet. 3. Asking price: $2,800,000. 4. Basic project description/zoning: a. Setback requirements: 15% b. Circulation requirements: 15% c. Maximum units per acre: 24 (based on a unit mix of 1-, 2-, and 3-bedroom apartments; weighted average =900 squ feet per unit) d. Parking requirements: 1.5 spaces per unit @ 400 square feet per space e. Open space, berms, landscape, support area: 1.0 acre (required) based on 240 units f. Maximum building height: 2 stories 5 Phvsiral fonsihilitu (in sminare feef). Conclusion: It appears that the site can accommodate a 240-unit apartment project and comply with zoning requirements. return on cost because the margin for error is too risky. If construction costs are higher or rents are lower than anticipated, the project may not be feasible. The asking price of the project is $14,500,000 and the construction cost per unit is $82,600. The current rent to justify the land acqusition is $2.4 per square foot. Required: a. Based on the fact that the project appears to have 9,360 square feet of surface area in excess of zoning requirements, the developer could make an argument to the planning department for an additional 10 units, 250 units in total, or 25 units per acre. What is the percentage return on total cost under the revised proposal? Is the revised proposal financially feasible? b. Suppose the developer could build a 240-unit luxury apartment complex with a cost of $141,500 per unit. What would such a project have to rent for (per square foot) to make an 8 percent return on total cost? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Suppose the developer could build a 240-unit luxury apartment complex with a cost of $141500 per project have to rent for (per square foot) to make an 8 percent return on total cost? (Do not round in Round your final answer to nearest whole dollar amount.) Review Concept Box 16.2. The investor-developer would not be comfortable with a 7.8 percent return on cost because the margin for error is too risky. If construction costs are higher or rents are lower than anticipated, the project may not be feasible. The asking price of the project is $14,500,000 and the construction cost per unit is $82,600. The current rent to justify the land acqusition is $2.4 per square foot. Required: a. Based on the fact that the project appears to have 9,360 square feet of surface area in excess of zoning requirements, the developer could make an argument to the planning department for an additional 10 units, 250 units in total, or 25 units per acre. What is the percentage return on total cost under the revised proposal? Is the revised proposal financially feasible? b. Suppose the developer could build a 240-unit luxury apartment complex with a cost of $141,500 per unit. What would such a project have to rent for (per square foot) to make an 8 percent return on total cost? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Based on the fact that the project appears to have 9,360 square feet of surface area in excess of zon developer could make an argument to the planning department for an additional 10 units, 250 units acre. What is the percentage return on total cost under the revised proposal? Is the revised proposal not round intermediate calculations. Round your final answer to 2 decimal places.) 1. Goal: To provide a preliminary development plan analysis to determine whether an apartment project can be built on a specific site in accordance with regulatory requirements and leased at current rental rates in order to justify land acquisition. 2. Site: 10 acres or 435,600 square feet. 3. Asking price: $2,800,000. 4. Basic project description/zoning: a. Setback requirements: 15% b. Circulation requirements: 15% c. Maximum units per acre: 24 (based on a unit mix of 1-, 2-, and 3-bedroom apartments; weighted average =900 squ feet per unit) d. Parking requirements: 1.5 spaces per unit @ 400 square feet per space e. Open space, berms, landscape, support area: 1.0 acre (required) based on 240 units f. Maximum building height: 2 stories 5 Phvsiral fonsihilitu (in sminare feef). Conclusion: It appears that the site can accommodate a 240-unit apartment project and comply with zoning requirements. return on cost because the margin for error is too risky. If construction costs are higher or rents are lower than anticipated, the project may not be feasible. The asking price of the project is $14,500,000 and the construction cost per unit is $82,600. The current rent to justify the land acqusition is $2.4 per square foot. Required: a. Based on the fact that the project appears to have 9,360 square feet of surface area in excess of zoning requirements, the developer could make an argument to the planning department for an additional 10 units, 250 units in total, or 25 units per acre. What is the percentage return on total cost under the revised proposal? Is the revised proposal financially feasible? b. Suppose the developer could build a 240-unit luxury apartment complex with a cost of $141,500 per unit. What would such a project have to rent for (per square foot) to make an 8 percent return on total cost? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Suppose the developer could build a 240-unit luxury apartment complex with a cost of $141500 per project have to rent for (per square foot) to make an 8 percent return on total cost? (Do not round in Round your final answer to nearest whole dollar amount.)