potential reductions in market rate apartment cost
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inputs in boldbaseline scenarioaggregate low-cost scenariocheap developers scenariocheap architects scenariofast permits scenariolater SDCs scenarioliberalizing R5 zoning scenario
skinflint construction scenario
low parking scenariolow property taxes scenario
low-return investors scenario
cheap land scenario
savings for low-cost scenario
notes from low-cost scenario
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line items that differ between the scenarios in yellow
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developer fee and overhead ($)$1,814,765$1,361,073$1,361,073$1,814,765$1,814,765$1,814,765$1,814,765$1,814,765$1,814,765$1,814,765$1,814,765$1,814,765$453,692
developers paid like the average OR elementary school teacher ($65k)
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architecture and legal fees ($)$2,052,213$1,392,398$2,052,213$1,923,950$2,052,213$2,052,213$2,052,213$2,052,213$2,052,213$2,052,213$2,052,213$2,052,213$128,263
consultants & lawyers paid like the average OR elementary school teacher ($65k)
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early capital expenses total$3,866,978$2,753,471$3,413,286$3,738,715$3,866,978$3,866,978$3,866,978$3,866,978$3,866,978$3,866,978$3,866,978$3,866,978$1,113,507
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$0
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months between early capital and building permit application ("planning")242424242424242424242424$0
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annualized cost of capital during planning (%, assume simple interest)25%15%25%25%25%25%25%25%25%25%15%25%$0
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cost of early capital during planning ($)$1,933,489$826,041$1,706,643$1,869,357$1,933,489$1,933,489$1,933,489$1,933,489$1,933,489$1,933,489$1,160,093$1,933,489$1,107,448
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$0
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days to process building permit1942819419428194194194194194194194$166
based on 15-year average of large apartment building permit processing times in Portland and longest building permit time for any commercial project in Houston 2014-2017
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annualized cost of capital during building permit and construction process (%)25%15%25%25%25%25%25%25%25%25%15%25%$0
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cost of early capital during building permit process ($)$513,831$31,684$453,546$496,788$74,161$513,831$513,831$513,831$513,831$513,831$308,299$513,831$482,148
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$0
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up-front SDC per home$21,500$0$21,500$21,500$21,500$0$21,500$21,500$21,500$21,500$21,500$21,500$21,500
SDCs collected after operation begins, so capital required for SDCs doesn't accrue interest during permitting or construction
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up-front SDCs for building$2,902,500$0$2,902,500$2,902,500$2,902,500$0$2,902,500$2,902,500$2,902,500$2,902,500$2,902,500$2,902,500$2,902,500
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$0
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land cost per square foot$250$13$250$250$250$250$250$250$250$250$250$13$237
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square feet on site30,60030,60030,60030,60030,60030,60030,60030,60030,60030,60030,60030,600$0
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land cost$7,650,000$397,800$7,650,000$7,650,000$7,650,000$7,650,000$7,650,000$7,650,000$7,650,000$7,650,000$7,650,000$397,800$7,252,200
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$0
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title and closing$200,000$200,000$200,000$200,000$200,000$200,000$200,000$200,000$200,000$200,000$200,000$200,000$0
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$0
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construction per square foot - gross rentable & common space$193$154$193$193$193$193$157$189$193$193$193$193$39
home is instead built in a two-story wood apartment building because we liberalized R5 zoning; these estimates are from EcoNW
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construction cost per square foot - underground parking$132$132$132$132$132$132$132$132$132$132$132$132$0
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homes135135135135135135135135135135135135$0
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rentable sqft per home667667667667667667667667667667667667$0
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ratio of common to rentable space25%25%25%25%25%25%25%25%25%25%25%25%$0
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gross sqft rentable & common space per home834834834834834834834834834834834834$0
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parking ratio0.630.20.630.630.630.630.630.630.20.630.630.63$0
auto ownership needs are dramatically reduced
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gross sqft per parking space350350350350350350350350350350350350$0
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parking spaces8527$85$85$85$85$85$85$27$85$85$85$58
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$0
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construction cost per home$160,914$128,281$160,914$160,914$160,914$160,914$130,899$157,695$160,914$160,914$160,914$160,914$32,633
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construction cost per parking space$46,200$46,200$46,200$46,200$46,200$46,200$46,200$46,200$46,200$46,200$46,200$46,200$0
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$0
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construction cost for living spaces$21,723,356$17,317,905$21,723,356$21,723,356$21,723,356$21,723,356$17,671,331$21,288,889$21,723,356$21,723,356$21,723,356$21,723,356$4,405,452
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construction cost for parking garage$3,929,310$1,247,400$3,929,310$3,929,310$3,929,310$3,929,310$3,929,310$3,929,310$1,247,400$3,929,310$3,929,310$3,929,310$2,681,910
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construction cost total$25,652,666$18,565,305$25,652,666$25,652,666$25,652,666$25,652,666$21,600,641$25,218,199$22,970,756$25,652,666$25,652,666$25,652,666$7,087,362
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$0
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construction loan (land + construction + pre-construction SDCs)$36,205,166$18,963,105$36,205,166$36,205,166$36,205,166$33,302,666$32,153,141$35,770,699$33,523,256$36,205,166$36,205,166$28,952,966$17,242,062
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$0
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construction loan APR5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%$0
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construction and lease-up term (months)202020202020202020202020$0
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interest accrued during construction and lease-up$3,017,097$1,580,259$3,017,097$3,017,097$3,017,097$2,775,222$2,679,428$2,980,892$2,793,605$3,017,097$3,017,097$2,412,747$1,436,838
includes savings from post-construction SDCs, and from lower construction costs
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construction loan fee$590,749$590,749$590,749$590,749$590,749$590,749$590,749$590,749$590,749$590,749$590,749$590,749$0
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$9$0
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cost of early capital during construction and lease-up$1,611,241$688,368$1,422,203$1,557,798$1,611,241$1,611,241$1,611,241$1,611,241$1,611,241$1,611,241$966,745$1,611,241$922,873
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total cost of early capital from planning through lease-up$4,058,561$1,546,093$3,582,392$3,923,944$3,618,891$4,058,561$4,058,561$4,058,561$4,058,561$4,058,561$2,435,137$4,058,561$2,512,469$90
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$0
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lease-up marketing$150,000$150,000$150,000$150,000$150,000$150,000$150,000$150,000$150,000$150,000$150,000$150,000$0
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miscellaneous soft costs$1,000,000$1,000,000$1,000,000$1,000,000$1,000,000$1,000,000$1,000,000$1,000,000$1,000,000$1,000,000$1,000,000$1,000,000$0
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SDCs paid as operation begins per home$0$21,500$0$0$0$21,500$0$0$0$0$0$0-$21,500
SDCs collected after operation begins, so capital required for SDCs doesn't accrue interest during permitting or construction
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SDCs paid as operation begins per building$0$2,902,500$0$0$0$2,902,500$0$0$0$0$0$0-$2,902,500
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$0
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capitalized costs at end of construction$49,088,552$29,686,176$48,158,691$48,825,671$48,648,882$48,846,677$44,698,858$48,617,879$46,183,150$49,088,552$47,465,128$41,232,002$19,402,376
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capitalized costs per home at end of construction$363,619$219,898$356,731$361,672$360,362$361,827$331,103$360,132$342,097$363,619$351,594$305,422$143,721
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$0
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necessary annual cash flow as a share of capitalized costs at end of construction
5.80%5.80%5.80%5.80%5.80%5.80%5.80%5.80%5.80%5.80%5.80%5.80%$0
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necessary annual cash flow$2,847,136$1,721,798$2,793,204$2,831,889$2,821,635$2,833,107$2,592,534$2,819,837$2,678,623$2,847,136$2,752,977$2,391,456$1,125,338
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necessary annual cash flow per home$21,090$12,754$20,690$20,977$20,901$20,986$19,204$20,888$19,842$21,090$20,392$17,714$8,336
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necessary monthly cash flow per home$1,757$1,063$1,724$1,748$1,742$1,749$1,600$1,741$1,653$1,757$1,699$1,476$695
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annual property taxes for building$395,506$232,500$395,506$395,506$395,506$395,506$395,506$395,506$395,506$232,500$395,506$395,506$163,006
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average annual property taxes per home$2,930$1,722$2,930$2,930$2,930$2,930$2,930$2,930$2,930$1,722$2,930$2,930$1,207
property tax millage reduced to Roseburg's
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average monthly property taxes per home$244$144$244$244$244$244$244$244$244$144$244$244$101
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$0
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annual operating cost for building (not including property taxes)$398,250$398,250$398,250$398,250$398,250$398,250$398,250$398,250$398,250$398,250$398,250$398,250$0
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parking space rent per month$175$175$175$175$175$175$175$175$175$175$175$175$0
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building parking revenue per year$169,675$53,865$169,675$169,675$169,675$169,675$169,675$169,675$53,865$169,675$169,675$169,675$115,810
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annual operating cost for building net of parking (not including property taxes)$228,575$344,385$228,575$228,575$228,575$228,575$228,575$228,575$344,385$228,575$228,575$228,575-$115,810
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average annual operating costs per home (not including property taxes)$2,950$2,950$2,950$2,950$2,950$2,950$2,950$2,950$2,950$2,950$2,950$2,950$0
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average monthly operating costs per home net of parking (not including property taxes)
$141$213$141$141$141$141$141$141$213$141$141$141-$71
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$0
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average occupancy rate (homes and parking)95%95%95%95%95%95%95%95%95%95%95%95%$0
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$0
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necessary annual rent per home$27,066$17,923$26,645$26,947$26,867$26,957$25,081$26,853$26,655$25,795$26,332$23,513$9,143
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necessary monthly rent per home$2,255.50$1,494$2,220$2,246$2,239$2,246$2,090$2,238$2,221$2,150$2,194$1,959$762
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monthly rent savings below baseline scenario$762$35$10$17$9$165$18$34$106$61$296
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baseline cost contribution from...building annualbuilding monthlyhome monthlyhome monthly after vacancy
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developer fee and overhead$105,256$8,771$65$68
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architecture and legal fees$119,028$9,919$73$77
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sdcs$168,345$14,029$104$109
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land cost$443,700$36,975$274$288
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title and closing$11,600$967$7$8
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residential construction cost$1,259,955$104,996$778$819
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parking construction cost$227,900$18,992$141$148
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construction loan fee$34,263$2,855$21$22
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construction loan interest$174,992$14,583$108$114
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early investors$235,397$19,616$145$153
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lease-up marketing$8,700$725$5$6
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misc soft costs$58,000$4,833$36$38
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property taxes$395,506$32,959$244$257
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operating costs net of parking not including property taxes$228,575$19,048$141$149
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total before vacancy$2,143$2,256
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total accounting for vacancy$2,256
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simplified monthly rent contribution from...todayhow to cut costslow-cost scenariocosts cut
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