This development represents a strategic value-add opportunity, transforming a single-family property into a modern fourplex in Manchester Square. By maximizing the property’s potential under RD2 zoning, we’re creating both quality housing and exceptional investment returns.
$650,000
Purchase Price
$1,100,000
Rehab Budget
$2,300,000
Projected ARV
49.5%
ROI on Cash
Property Acquisition:
Construction & Development:
Holding Costs:
This development utilizes a strategic two-loan approach that combines investor capital with acquisition and construction financing to optimize returns.
The project's holding timeline directly impacts profitability due to ongoing financing and holding costs. A shorter completion timeline significantly increases returns, while extended timelines erode profit margins.
| Holding Period | Total Profit | ROI on Cash | Annualized ROI |
|---|---|---|---|
| 8 Months | $393,407 | 57.2% | 85.8% |
| 10 Months | $376,032 | 53.2% | 63.8% |
| 12 Months | $358,667 | 49.5% | 49.5% |
| 14 Months | $341,312 | 46.0% | 39.4% |
Recent multi-family sales in the area strongly validate our projected ARV of $2,300,000 ($383/sq ft). Multiple comparable properties have sold in the $1.6M-$2.95M range, with prices ranging from $305-$406 per square foot, confirming our valuation assumptions.
| Property | Type | Size | Sale Price | Price/Sq Ft | Sale Date |
|---|---|---|---|---|---|
| 1643 W 82nd St | Multi-Family (20BR/21BA) | 7,264 sq ft | $2,700,000 | $372 | May 2025 |
| 524 W 75th St | Multi-Family (20BR/20BA) | 8,088 sq ft | $2,600,000 | $321 | May 2025 |
| 618 W 49th St | Multi-Family (17BR/10+BA) | 7,264 sq ft | $2,950,000 | $406 | Apr 2025 |
| 1639 W 82nd St | Multi-Family (12BR/9BA) | 4,772 sq ft | $1,600,000 | $335 | Sep 2024 |
| 1265 E Adams Blvd | Multi-Family (4BR/2BA) | 8,692 sq ft | $2,650,000 | $305 | Aug 2024 |
