Feasibility Study for Multi-family Development Projects
Lately we have been getting quite a few inquiries from local builders (and even some folks with no previous development experience) who are looking to purchase land and develop a multi-family project as an investment property. Some people are just beginning their real estate search and need tips on where to look and how to find a property where new multifamily buildings are allowed. Others have a property under contract with a contingency clause allowing them time to test fit their desired development scenario before finalizing the purchase. And some people are already the lucky owners of a property that is either undeveloped or underdeveloped due to a recent upzone. Wherever you are on your path, WC STUDIO architects can help you understand and visualize the development potential of any property you might have designs (pun intended) on by completing a Feasibility Study.
How much does a Feasibility Study cost?
Generally, we work hourly for all Pre-Design services, which includes Feasibility Studies, since these can range from just a few hours of work up to 30-40 hours depending on how complex the project is and how much information our clients need to make decisions. To help you determine what type of study you need and estimate the cost, we have examples of the three levels of Feasibility Study we offer below.
LEVEL 1 Feasibility Study
This study level includes a summary of the subject property data, our research into the applicable zoning regulations, and a written analysis of possible development scenarios. This usually takes 2-4 hours to complete (about $400-$800). Sometimes less time is needed because we find a red flag early in our research. We use our experience to predict which regulations are likely to be the limiting factor and prioritize our research accordingly so that no time is wasted and you can quickly move on to another site if necessary.
Level 1 Feasibility Studies answer the question, “What can I build on this property?” and are recommended as a first step to decide if a property is worth pursuing further. If the results are favorable, you may choose to proceed with a Level 2 or Level 3 study. At the conclusion of the Level 1 study, our summary of the most relevant regulations and our analysis may be written directly into the body of an email or packaged into a document like this:
LEVEL 2 Feasibility Study
In addition to a detailed zoning summary, the Level 2 Feasibility Study deliverable will include a basic site plan, drawn to scale, that visually represents (in two dimensions) our analysis of the possible development scenarios we loosely sketched out in Level 1. Drawing the site plan helps to understand not only what is allowed to be built, but how it actually fits on the site. In addition to building footprint and any required parking, the site plan shows other land use elements such as setbacks, maximum lot coverage, required yard space, landscaping, and even where the trash and recycling might go. This usually takes 10-15 hours (about $1,800-$2,500), sometimes more if site plans for multiple development scenarios are desired. A Level 2 Feasibility Package will look similar to this:
LEVEL 3 Feasibility Study
In addition to a detailed zoning summary and site plan, the Level 3 Feasibility Study deliverable will include a a three-dimensional building concept diagram. This level of study may not be needed to understand smaller projects such as a duplex or several townhouses on flat sites, but becomes more important for projects with units that stack vertically—like apartments or condos—and whenever the site is sloping. A three dimensional diagram also helps us analyze more technical zoning regulations such as daylight plane setbacks and height bonuses, and provides a visual representation of the general size and shape of the buildable envelope. A Level 3 Feasibility Study usually takes between 20-30 hours (flat fee of $5,000) and will contain information and diagrams similar to this:
Hopefully these examples give a clear idea of what you can learn from each level of Feasibility Study, and how this information can help you evaluate potential sites. As architect-developers, we find this early stage of a development project to be one of the most exciting parts of the design process. Scheduling a consultation with us is the first step to unlocking the potential of a property and visualizing what is possible. We look forward to hearing from you!