The private sector’s ability to build more housing is significantly influenced by the regulatory environment. When there is less red tape, quicker timelines for permitting, reduced city fees, and less bureaucracy, real estate development flourishes. In Los Angeles, the Executive Directive 1 (ED1) is a prime example of how streamlined processes can catalyze affordable housing development even in challenging economic…
In the past, the construction finance landscape was characterized by lower construction costs, lower cap rates, lower interest rates, higher loan proceeds, and readily available capital. This environment was conducive to development, with growing rents and minimal vacancies. However, today’s reality paints a very different picture for developers, especially at the Ready-to-Issue (RTI) stage. This newsletter will explore the significant…
IntroductionReal estate development is a multifaceted process involving a wide array of expenses that need careful consideration and planning. Understanding the various costs involved is crucial for successful project underwriting and execution. This deep dive explores the four primary categories of costs in real estate development: land costs, hard costs, soft costs, and carry costs. 1. Land CostsDefinition: Land costs…
Imagine stepping into an apartment that not only adapts to your everyday needs but anticipates them with uncanny accuracy. Welcome to the year 2054, where the concept of home is dynamically reinvented through cutting-edge technology and innovative design. Let’s explore what the future of urban living may hold, but first a reminder! Our entitlements + permitting team is ready,…
Starting a new development project is a big undertaking, and its success lies in assembling the right team. Selecting the appropriate architects and engineers is about finding partners who align with your vision, budget, and timelines. This series dives into the crucial aspects you should consider to ensure your project starts on the right foot. But FIRST If you need…
