Overview
- Project
- 200-unit multifamily development
- Location
- West End, St. Louis Park, Minnesota
- Product
- Mid-rise multifamily, 4 over 1 podium
- Strategy
- Ground-up development
- Units
- 200
- Net rentable SF
- 179,000
- Site
- 2.5 acres (sample)
- Rent type
- Market rate
Timeline
- Closing
- Jan 2027
- Construction complete
- Jan 2029, month 24
- First delivery
- Feb 2029, month 25
- Stabilized
- Jan 2030, month 36
- Refinance
- Feb 2032, month 61
- Sale
- Jan 2037, month 120
Construction loan
- Total project cost
- $52,189,000
- Equity
- $18,266,779
- Loan
- $33,922,000, 65.0% LTC
- Rate, underwritten
- 7.00%
- Rate, term sheet at today's index
- 5.90%
- Interest only
- 42 months
- Extensions
- 2 x 12 months
Refinance
- Month
- 61
- Underwritten NOI
- $3,787,177
- Value
- $68,857,765
- Loan
- $47,032,000
- Sized by
- Minimum debt service coverage
- Rate
- 5.40% fixed
- Amortization
- 30 years
- Net proceeds to equity
- $14,024,696
Operating summary
- Asking rent per unit
- $2,184
- Asking rent per SF
- $2.44
- Average SF
- 895
- Vacancy, stabilized
- 5.0%
- Expense per unit per year
- $9,340
- Expense ratio
- 34.2%
- DSCR, first stabilized year
- 1.60x
Unit mix
| Type | Units | Avg SF | $/SF | Avg rent |
|---|---|---|---|---|
| Studio | 30 | 535 | $3.04 | $1,625 |
| 1BR | 80 | 715 | $2.59 | $1,850 |
| 2BR | 75 | 1,150 | $2.22 | $2,550 |
| 3BR | 15 | 1,300 | $2.50 | $3,250 |
| Total and average | 200 | 895 | $2.44 | $2,184 |
Key metrics
- Yield on cost ยท stabilized
- 7.26%
- Cash on cash ยท average over the hold
- 5.7%
- DSCR ยท first stabilized year
- 1.60x
- Debt yield ยท first stabilized year
- 11.16%
- Construction cost per unit
- $205,000
- Land cost per unit
- $10,000
- Soft costs per unit
- $45,945
- Expense ratio
- 34.2%
- Construction duration
- 24 months
- Lease-up ยท stabilized month 36
- 11 months
- Units leased per month ยท average
- 18.2
- Expense per unit per year ยท with taxes, $7,410 without
- $9,340
Escalation
- Rent growth to stabilization
- 3.0% a year, 3 years
- Rent growth after stabilization
- 2.5% a year
- Expense growth
- 2.5% a year
Returns
- Investor IRR
- 15.16%
- Investor multiple
- 2.73x
- Levered project IRR
- 16.85%
- Unlevered IRR
- 10.27%
- Sponsor promote
- $7.5M
- Hold
- 10 years, 5.50% exit cap
Comps
Average asking rent, all comps ยท West End, 2026-11-08
- All units
- Studio
- 1 bed
- 2 bed
- 3 bed
- 4 bed, none posted
| Property | All units | Studio | 1 bed | 2 bed | 3 bed | 4 bed |
|---|---|---|---|---|---|---|
| Subject (pro forma) | $2,184 | $1,625 | $1,850 | $2,550 | $3,250 | Not in mix |
| Caraway West End | $2,459 | $1,623 | $2,005 | $2,884 | None posted | None posted |
| Millennium at West End | $2,456 | None posted | $1,845 | $2,578 | None posted | None posted |
| The Flats at West End | $2,271 | None posted | $1,917 | $2,448 | None posted | None posted |
| The Shoreham | $1,872 | $1,432 | $1,826 | $2,599 | None posted | None posted |
| Property | All units | Studio | 1 bed | 2 bed | 3 bed | 4 bed |
|---|---|---|---|---|---|---|
| Subject (pro forma) | $2,184 | $1,625 | $1,850 | $2,550 | $3,250 | Not in mix |
| Caraway West End | $2,459 | $1,623 | $2,005 | $2,884 | None posted | None posted |
| Millennium at West End | $2,456 | None posted | $1,845 | $2,578 | None posted | None posted |
| The Flats at West End | $2,271 | None posted | $1,917 | $2,448 | None posted | None posted |
| The Shoreham | $1,872 | $1,432 | $1,826 | $2,599 | None posted | None posted |
| Comp average | $2,264 | $1,527 | $1,898 | $2,627 | None posted | None posted |
Subject weighted by pro forma units; comps average their posted plans. All comps, by size and rent per SF
Underwriting checks:Tax compsLand compsOperating expenses