- Essential keys to Site Selection
- Multi Family Land Development Success
- 5 Construction Essentials
- Permanent financing (90 for 90) Operation
- Disposition
Essential Keys to Site Selection Process:
When selecting a site for your apartment complex, these indicators will predict the long term success and future value of your investment.
Job Growth
Look for at least three Main Industries that employ the residents. You do not want to bank on one or two larger companies, because if these companies move or downsize, your tenant base will be substantially impacted, and thus your rents.
Population Growth
This is a careful one to watch in the states of Pennsylvania and Maryland. These areas are losing population in many parts of the rural area, but gaining population in core urban and suburban areas where jobs are plentiful. If jobs are in supply, people will follow. A high percentage of older population is a helpful indicator that residents like to stay long term, even after their working years end.
Proximity
Consider where your site is located relative to amenities. It may be close to several large warehouses that employ many people, but are there other amenities around that the residents will enjoy and keep coming back to? This will help retain your tenant base over a longer term, and then help keep your turn cost lower.
Site Suitability
Lastly, consider the actual site itself. Is the property level, or will require substantial earth work to make usable? Streams and wetlands can significantly reduce the building area, as can preservation areas, so these will want to be checked carefully to evaluate the cost it will take to build there, and how many units it will support. Often time these site constraints can be worked around if the site is a good one for the location specifics of your previous review.
Following these steps will ensure before you go down the pathway of a contract that you will be able to make the investment of your time and approval dollars stand the test of time over the development process.
