Quote:
Originally Posted by LouisVanDerWright
!?!?!?
Really? How on earth can they make the numbers work at that rate? Did they get the land for free or something? You can't make a new construction highrise in Chicago go for anything less than $2.50/SF AVERAGE or the returns just don't cover costs. Are construction costs significantly lower in KCMO?
Awesome to see a big project like this for KC, one of my favorite midwestern cities.
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"The $79.2 million project is receiving substantial help from the city,
a $7.5 million cash subsidy. In addition,
Cordish will receive a 25-year, 100 percent property tax abatement for the project valued at $2.87 million." Yes, construction costs are lower, and land prices are
significantly lower than Chicago (of course), STL, and maybe even Milwaukee/Indianapolis.
So a $79MM project drops down to ~$69.5MM....I'm sure any Chicago developer would have a field day with a 15% decrease in construction costs, essentially as a free pass.
The max rent here might even be as low as $1.60 depending on (slow?) leasing velocity, construction costs under budget?, etc.....
And KC is desperate for downtown development, as they are far lagging behind STL in my opinion, even with the Sprint Center/P&L District....so I wouldn't be surprised if the next two or three apartment (doubt they could sustain condo development on the scale) would receive similar if not larger public subsidies.
I'm excited for KC with this one! Can't believe it will have been 40 years since a new residential high rise was built in KC by the time this one is done!