strategies for cost effective development n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Strategies for Cost-Effective Development PowerPoint Presentation
Download Presentation
Strategies for Cost-Effective Development

Loading in 2 Seconds...

play fullscreen
1 / 6

Strategies for Cost-Effective Development - PowerPoint PPT Presentation


  • 88 Views
  • Uploaded on

Strategies for Cost-Effective Development. Jeffrey Kittle President & CEO Herman & Kittle Properties. QAP Priorities. Green Building Utilities Cost/Benefit of financing source (Davis Bacon?). Local Design Requirements. Due diligence up-front on all fees to city – generally not negotiable

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Strategies for Cost-Effective Development


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
    Presentation Transcript
    1. Strategies for Cost-Effective Development Jeffrey Kittle President & CEO Herman & Kittle Properties

    2. QAP Priorities Green Building Utilities Cost/Benefit of financing source (Davis Bacon?)

    3. Local Design Requirements Due diligence up-front on all fees to city – generally not negotiable Due diligence on all design requirements – if too much, can you build in the next county and still get deal funded? Sometimes the next county on the path of growth can be very good over the long run.

    4. Construction Material Pricing Centralized purchasing with competitive bidding Separate labor and material where possible Roofing, siding, concrete, brick, plumbing fixtures, lumber, lighting. Proactively watch material and labor pricing markets. Retainage release at 50% completion – otherwise trades factor in a cost to carry. Real estate with utilities (avoid lift stations) on-site and minimal topo relief Low acquisition costs of buildings for a rehab Cost benefit analysis of long-term utility savings vs. up-front costs Acquisition rehab deals – analysis of up-front rehab vs. ongoing replacement reserve requirement Work with local unit of government on properties they have access to – likely low or no cost Brownfield Site – funds often available for phase 1, 2, or clean-up

    5. Investor Demands Hard Cost Contingency – reduce or post LC/Bond Operating Reserve – reduce and/or trade longer ODG Reduction of non-basis eligible costs LP pay their own way – LP pays for their own 3rd party costs Mutually acceptable construction inspector for both lender and syndicator

    6. Continuous conversation that balances QAP, Costs, and long-term viability of project.Questions?