Multifamily - Ground-up

Ground-up multifamily real estate development involves constructing new apartment buildings from scratch, generally yielding higher potential returns but at increased risk and complexity. The process often starts with land acquisition and zoning approvals, followed by design, financing, and construction.

Costs can vary significantly but typically exceed $200 per square foot in many U.S. markets. The project timeline may span several years, with target IRRs often in the 15-20% range. Developers need expertise in site selection, entitlements, construction management, and capital structuring. Market research is crucial for optimizing unit mix and amenities to ensure competitiveness and profitability.