Hello, we are long time lurkers from the somersoft days, and whilst sad to see that site end, have been overjoyed with the success and continuity of this site.. Well done. We have undertaken a few subdivisions over the years and took a break whilst starting a family. Just recently we found out an elderly family member has had their multiple investment properties located near an inner city area (Maylands/Inglewood) rezoned for multi storey, multi unit developments. We have been asked to assist in assessing the options with developing, and wondering whether any one here can recommend where to start. These are single blocks which can take 2 storey plus lofts, and a few blocks that are adjacent to each other and can take up to 40 plus apartments, 5 stories high. These blocks were bought in the 70s and are now run down houses, and are ready for demo. We aren't new to design and construction of villas, battle axes, and project development in general, but the amount of door knocking developers offering low ball options to assist, has been demoralizing. Any help would be greatly appreciated.
Ive done a few developments in the area and know it well, about to complete some apartments there. Depending on what exactly youre looking for id be happy to provide some advice
Hi Sanj, Thanks for your quick reply. We thinking we need to development a strategy, capex and cashflow plan. At this stage, the idea of developing the 8 unit site would be the best option, start small first. A couple of apartments developed are selling circa $500-$600k for 2x2's, and renting for about $500/wk. The aim for our family member is not to sell the land, but have family (such as us) invest via whichever structure to assist with the building costs. I.e. No finance, Preference is to keep as many units as possible as rentals., finish this one and then move onto the 2000m2 site, then the 3500m2 site... It hard to believe how cheap these houses where when this suburb was considered less than ideal in the 70s. But trying to determine which specialists/experts to surround ourselves with for support. a few of the developers have offered turnkey options, which are not particularly reasonable.
I'm happy to help you work out what you can do with the site. I design apartment developments like these and secure approvals for people wishing to take it that far, but otherwise I'm happy to take a phone call or two to discuss what's realistically possible on your lot. Shoot me a PM for my details if you like.
$500k-$600k for 2x2 apartments in Inglewood/maylands sounds pretty high. Your family must have pretty deep pockets to develop the 5 story apartment complexes without requiring finance. Nice.
Aaron,thanks for your offer, having seen some of your developments via searching various council DA's I'd be keen to chat , so I'll message you and we can take it from there. MrDo.. Not deep pockets, just a number of family members who are able to invest, additionally intend staged development. The properties have been in the family 30 odd years, no need to rush. There are three property " clumps" - single corner block, think we are able to go 3 storey high, near zero set backs, 8 units site. - 3 blocks together, same set back zones, able to go 5 stories, maybe 35 to 40 units. - and a 5 unit site , same as second clump.... Unsure how many units... All three are corner blocks. All are right next to train Stn, cafe strip, shops. I.e less than 100m walk.
Some action on Walcott Street, Match selling apartments, I think 1 bedders and 2 bedders around $425k? City views Further along 2/3 bedders I think similar price range, city views. This is my g/friends deve. Be very interesting to see how fast these sell Not in the hub, but trade off is city views and seem to be well priced. MTR
Thanks MTR, the information helps put a range on finished product valuations which helps with assessing the right capital investment. I'm worried about over valuing the end product and then putting in too much capital in the construction. The price range of apartments are quite varied, spent some time driving around bassendean train station, Belmont and rivervale and noted prices for 2x2's around the $390k range. There are two set of apartments being developed on the street at the moment, and sales have ranged from 630k for a single high spec 2x2, down to $500k for 2x2s , the 1x1's are around 400k. Knowing that's 2x2 prices vary so much,we are keen to understand typical building costs for apartments. Is there a rule of thumb for low, medium and high spec units? Does building underground carparks increase costs and by what order of magnitude?
@MJM have you settled on an architect to design your apartments? I'm keen to get details for some good architect in Perth as well. Anyone have recommendations?
I haven't dealt with any architects for multi apartments. But these ones are starting construction in North Perth. The design looks really nice and the pre sales sold pretty quick earlier in the year. Might be worthwhile to chat with the architects who designed these. http://362charles.com.au/architecture/ "Designed by renowned architects Bollig Design Group, 362 Charles is set to become a North Perth iconic building. With its stunning architectural form, careful choice of fine grain materiality and cutting edge urban living design concept with proactive environmental sustainability initiatives, 362 Charles will stand the test of time and be enjoyed and celebrated for generations to come."
