[CondoGuru]

The land acquisition has very little to do with the cost per buildable square foot. The size and configuration of units, total square footage and supply contracts for materials and construction are what dominate the budget. If they presell their 90 or 100 units required to get construction financing, they have a choice. They can buy the building and its finishes, keeping the cost per buildable foot fixed. Or, they can offer multiple finish options and have open-ended contracts with their suppliers, which means the cost to acquire those finishes goes up quarterly until they place the orders and deliver deposits. Problem is, they can't submit orders until a buyer comes in and chooses, making a huge percentage of the building exponentially more expensive to build the longer it takes for customers to commit and choose their finishes. That's why it's better for a large ambitious project like this to pre-package its finishes, keeping the construction costs fixed. It's the only way to get a building of this size out of the ground.