Building Costs Per Square Foot for Multi-Family Apartment Complex - Florida, USA

Last Updated on April 18, 2024 by admin

Understanding the Cost Dynamics of Building Multi-Family Apartments in Florida

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The Financial Blueprint for Prospective Builders and Investors

The real estate market in Florida has always been a focal point for both national and international investors, particularly in the multi-family apartment sector. With the state’s burgeoning population and its appeal as a tourist and retirement destination, the demand for residential units continues to surge. This increase has necessitated a deeper understanding of the costs involved in constructing multi-family apartments, ranging from small complexes to large buildings with multiple units. This article aims to dissect the various cost components associated with the construction of multi-family apartments in Florida, providing a detailed guide for developers and investors to strategically plan their projects.

Cost Breakdown for Building Multi-Family Apartments

Florida’s diverse real estate market requires a comprehensive analysis to understand the financial implications of building apartment complexes. The data provided delves into the costs per square foot, segmented by different quality classes and unit sizes, ranging from 400 to 2200 square feet. These costs are further broken down into specific construction components including excavation and foundations, substructure, wall framing and external finishes, and more specialized installations such as plumbing and electrical systems.

For a typical 887 square foot apartment unit, the costs can vary significantly depending on the quality and scale of the project. For instance, the total cost for building a single unit in an exceptional quality complex can range from approximately $153,900 to $228,267, while a minimum standard unit might cost between $66,026 and $95,332. Similarly, the costs escalate as the number of units in a complex increases, with detailed projections provided for complexes with up to 200 units.

Strategic Considerations for Developers

Building in Florida does not come without its unique set of challenges and considerations. Factors such as the choice of materials (e.g., masonry walls versus wood or light steel frame) can notably influence the overall costs, with a 9% cost increase when opting for masonry walls. Moreover, developers need to account for the variability in costs based on the location within the state and the current economic climate, which can affect material costs and labor availability.

Understanding the detailed breakdown of costs not only helps in creating accurate budgets but also in making informed decisions about the scale of the project, the target market, and the pricing strategy. Whether aiming for luxury apartments or more economical housing solutions, developers and investors can use this data to maximize their return on investment while meeting the growing housing demand in Florida.

The construction of multi-family apartments in Florida represents a significant investment opportunity but requires careful planning and consideration of various cost factors. By utilizing detailed cost data, developers can better navigate the complexities of the real estate development landscape in Florida, optimizing both the economic and practical aspects of their projects. This knowledge serves as a crucial tool for anyone looking to step into the Florida real estate market, ensuring that their investments are both sound and potentially lucrative.

Table of Building Costs Per Square Foot for Multi-Family Apartment Complex Block of 2 to 3 Units – Florida, USA

Note: Minimum-Maximum Range for each Quality Class (400 – 2200 sqft)

Building Cost Breakdown for Multi-Family Apartment Complex, Block of 2 to 3 Units – Florida:

Excavation and Foundations: (9% of total cost)

• Exceptional: $17.57 – $23.15
• Best: $15.46 – $20.30
• Good: $11.81 – $15.56
• Hi Average: $9.90 – $13.08
• Lo Average: $8.49 – $11.17
• Minimum: $7.24 – $9.54

Substructure (Floor Construction): (12% of total cost)

• Exceptional: $23.36 – $30.86
• Best: $20.61 – $27.07
• Good: $15.75 – $20.75
• Hi Average: $13.20 – $17.41
• Lo Average: $11.31 – $14.88
• Minimum: $9.65 – $12.72

Wall Framing and External Finish: (12% of total cost)

• Exceptional: $23.36 – $30.86
• Best: $20.61 – $27.07
• Good: $15.75 – $20.75
• Hi Average: $13.20 – $17.41
• Lo Average: $11.31 – $14.88
• Minimum: $9.65 – $12.72

Roof Construction: (10% of total cost)

• Exceptional: $19.47 – $25.72
• Best: $17.18 – $22.57
• Good: $13.13 – $17.29
• Hi Average: $11.00 – $14.50
• Lo Average: $9.44 – $12.40
• Minimum: $8.04 – $10.60

Floor Finishes: (5% of total cost)

• Exceptional: $9.73 – $12.86
• Best: $8.59 – $11.28
• Good: $6.56 – $8.65
• Hi Average: $5.50 – $7.25
• Lo Average: $4.72 – $6.20
• Minimum: $4.02 – $5.30

Internal Walls and Finishes: (8% of total cost)

• Exceptional: $15.58 – $20.55
• Best: $13.74 – $18.06
• Good: $10.50 – $13.85
• Hi Average: $8.80 – $11.60
• Lo Average: $7.55 – $9.93
• Minimum: $6.45 – $8.48

Ceiling: (Assumed 8% of total cost, same as Internal Walls and Finishes)

• Exceptional: $15.58 – $20.55
• Best: $13.74 – $18.06
• Good: $10.50 – $13.85
• Hi Average: $8.80 – $11.60
• Lo Average: $7.55 – $9.93
• Minimum: $6.45 – $8.48

Built-in Bathtub, Shower: (4% of total cost)

• Exceptional: $7.79 – $10.28
• Best: $6.87 – $9.02
• Good: $5.25 – $6.93
• Hi Average: $4.40 – $5.80
• Lo Average: $3.78 – $4.97
• Minimum: $3.22 – $4.24

Built-in Kitchen Cupboards, Countertops and Bars: (8% of total cost)

• Exceptional: $15.58 – $20.55
• Best: $13.74 – $18.06
• Good: $10.50 – $13.85
• Hi Average: $8.80 – $11.60
• Lo Average: $7.55 – $9.93
• Minimum: $6.45 – $8.48

Plumbing: (12% of total cost)

• Exceptional: $23.36 – $30.86
• Best: $20.61 – $27.07
• Good: $15.75 – $20.75
• Hi Average: $13.20 – $17.41
• Lo Average: $11.31 – $14.88
• Minimum: $9.65 – $12.72

Electrical Installation: (10% of total cost)

• Exceptional: $19.47 – $25.72
• Best: $17.18 – $22.57
• Good: $13.13 – $17.29
• Hi Average: $11.00 – $14.50
• Lo Average: $9.44 – $12.40
• Minimum: $8.04 – $10.60

Special Appliances and Installations: (Assumed 5% of total cost, half of Plumbing)

• Exceptional: $9.73 – $12.86
• Best: $8.59 – $11.28
• Good: $6.56 – $8.65
• Hi Average: $5.50 – $7.25
• Lo Average: $4.72 – $6.20
• Minimum: $4.02 – $5.30

Note: When masonry walls are used in lieu of wood or light steel frame walls, add 9% to the appropriate S.F. cost.

Building Costs Per Square Foot for Multi-Family Apartment Complex 2 to 3 Units – Florida, USA

Note: Minimum-Maximum Range for each Quality Class (400 – 2200 sqft)

How Much Does it Cost to Build an 887 sqft Apartment in Florida, USA? – Multi Family Housing

Cost Per Unit (USD$ per Unit)

Exceptional:

• Total Cost for 1 Unit: $172,622.63 – $228,267.79

Best:

• Total Cost for 1 Unit: $152,481.49 – $199,979.11

Good:

• Total Cost for 1 Unit: $116,451.62 – $153,233.91

Hi Average:

• Total Cost for 1 Unit: $97,496.00 – $128,631.48

Lo Average:

• Total Cost for 1 Unit: $83,799.32 – $110,111.61

Minimum:

• Total Cost for 1 Unit: $71,345.28 – $93,902.00

Total Cost for Building:

2 Unit Apartment Complex:

• Exceptional: $345,245.26 – $456,535.58
• Best: $304,962.98 – $399,958.22
• Good: $232,903.24 – $306,467.81
• Hi Average: $194,992.00 – $257,262.96
• Lo Average: $167,598.64 – $220,223.22
• Minimum: $142,690.56 – $187,804.00

3 Unit Apartment Complex:

• Exceptional: $517,867.89 – $684,802.37
• Best: $457,444.47 – $599,937.33
• Good: $349,354.86 – $459,701.72
• Hi Average: $292,488.00 – $385,894.44
• Lo Average: $251,397.96 – $330,334.83
• Minimum: $213,435.84 – $281,706.00

Table of Building Costs Per Square Foot for Multi-Family Apartment Complex Block of 4 to 9 Units – Florida, USA

Note: Minimum-Maximum Range for each Quality Class (400 – 2200 sqft)

Building Cost Breakdown for Multi-Family Apartment Complex, Block of 4 to 9 Units – Florida:

Excavation and Foundations: (9% of total cost)

• Exceptional: $16.61 – $21.81
• Best: $14.64 – $19.31
• Good: $11.10 – $14.65
• Hi Average: $9.34 – $12.22
• Lo Average: $7.94 – $10.46
• Minimum: $6.76 – $8.71

Substructure (Floor Construction): (12% of total cost)

• Exceptional: $22.14 – $29.19
• Best: $19.52 – $25.61
• Good: $14.80 – $19.53
• Hi Average: $12.45 – $16.34
• Lo Average: $10.58 – $13.93
• Minimum: $9.01 – $11.56

Wall Framing and External Finish: (12% of total cost)

• Exceptional: $22.14 – $29.19
• Best: $19.52 – $25.61
• Good: $14.80 – $19.53
• Hi Average: $12.45 – $16.34
• Lo Average: $10.58 – $13.93
• Minimum: $9.01 – $11.56

Roof Construction: (10% of total cost)

• Exceptional: $18.45 – $24.24
• Best: $16.27 – $21.28
• Good: $12.33 – $16.30
• Hi Average: $10.38 – $13.58
• Lo Average: $8.83 – $11.62
• Minimum: $7.51 – $10.75

Floor Finishes: (5% of total cost)

• Exceptional: $9.23 – $12.12
• Best: $8.13 – $10.64
• Good: $6.17 – $8.15
• Hi Average: $5.19 – $6.79
• Lo Average: $4.41 – $5.81
• Minimum: $3.75 – $5.37

Internal Walls and Finishes: (8% of total cost)

• Exceptional: $14.76 – $19.42
• Best: $13.03 – $17.06
• Good: $9.87 – $13.03
• Hi Average: $8.29 – $10.86
• Lo Average: $7.06 – $9.29
• Minimum: $6.03 – $7.74

Ceiling: (Assumed 8% of total cost, same as Internal Walls and Finishes)

• Exceptional: $14.76 – $19.42
• Best: $13.03 – $17.06
• Good: $9.87 – $13.03
• Hi Average: $8.29 – $10.86
• Lo Average: $7.06 – $9.29
• Minimum: $6.03 – $7.74

Built-in Bathtub, Shower: (4% of total cost)

• Exceptional: $7.39 – $9.70
• Best: $6.51 – $8.51
• Good: $4.93 – $6.50
• Hi Average: $4.15 – $5.44
• Lo Average: $3.53 – $4.65
• Minimum: $3.00 – $4.30

Built-in Kitchen Cupboards, Countertops and Bars: (8% of total cost)

• Exceptional: $14.76 – $19.42
• Best: $13.03 – $17.06
• Good: $9.87 – $13.03
• Hi Average: $8.29 – $10.86
• Lo Average: $7.06 – $9.29
• Minimum: $6.03 – $7.74

Plumbing: (12% of total cost)

• Exceptional: $22.14 – $29.19
• Best: $19.52 – $25.61
• Good: $14.80 – $19.53
• Hi Average: $12.45 – $16.34
• Lo Average: $10.58 – $13.93
• Minimum: $9.01 – $11.56

Electrical Installation: (10% of total cost)

• Exceptional: $18.45 – $24.24
• Best: $16.27 – $21.28
• Good: $12.33 – $16.30
• Hi Average: $10.38 – $13.58
• Lo Average: $8.83 – $11.62
• Minimum: $7.51 – $10.75

Special Appliances and Installations: (Assumed 5% of total cost, half of Plumbing)

• Exceptional: $9.23 – $12.12
• Best: $8.13 – $10.64
• Good: $6.17 – $8.15
• Hi Average: $5.19 – $6.79
• Lo Average: $4.41 – $5.81
• Minimum: $3.75 – $5.37

Note: When masonry walls are used in lieu of wood or light steel frame walls, add 9% to the appropriate S.F. cost.

How Much Does it Cost to Build an 887 sqft Apartment in Florida, USA? – Multi Family Housing

Cost Per Unit (USD$ per Unit)

Exceptional:

• Total Cost for 1 Unit: $163,779.37 – $215,054.41

Best:

• Total Cost for 1 Unit: $144,254.36 – $188,804.26

Good:

• Total Cost for 1 Unit: $109,437.71 – $144,552.39

Hi Average:

• Total Cost for 1 Unit: $92,006.25 – $120,452.62

Lo Average:

• Total Cost for 1 Unit: $78,356.75 – $103,005.40

Minimum:

• Total Cost for 1 Unit: $66,622.09 – $95,332.42

Total Cost for Building:

4 Unit Apartment Complex:

• Exceptional: $655,117.48 – $860,217.64
• Best: $577,017.44 – $755,217.04
• Good: $437,750.85 – $578,209.56
• Hi Average: $368,025.00 – $481,810.48
• Lo Average: $313,427.00 – $412,021.60
• Minimum: $266,488.36 – $381,329.68

5 Unit Apartment Complex:

• Exceptional: $818,896.85 – $1,075,271.05
• Best: $721,318.20 – $944,035.30
• Good: $546,877.13 – $722,771.95
• Hi Average: $460,031.25 – $602,263.10
• Lo Average: $391,771.75 – $515,031.75
• Minimum: $333,152.45 – $476,665.50

6 Unit Apartment Complex:

• Exceptional: $982,676.22 – $1,290,324.46
• Best: $865,619.96 – $1,133,853.56
• Good: $656,003.42 – $867,334.34
• Hi Average: $552,037.50 – $722,715.72
• Lo Average: $470,116.50 – $618,042.90
• Minimum: $399,816.54 – $571,001.32

7 Unit Apartment Complex:

• Exceptional: $1,146,455.59 – $1,505,377.87
• Best: $1,010,921.72 – $1,323,672.82
• Good: $765,129.71 – $815,896.73
• Hi Average: $644,043.75 – $843,168.34
• Lo Average: $548,461.25 – $721,054.05
• Minimum: $466,480.63 – $665,337.14

8 Unit Apartment Complex:

• Exceptional: $1,310,234.96 – $1,720,431.28
• Best: $1,156,223.48 – $1,513,492.08
• Good: $873,256.00 – $1,155,459.12
• Hi Average: $736,050.00 – $963,620.96
• Lo Average: $626,806.00 – $824,065.20
• Minimum: $533,144.72 – $759,672.96

9 Unit Apartment Complex:

• Exceptional: $1,474,014.33 – $1,935,484.69
• Best: $1,301,525.24 – $1,703,311.34
• Good: $981,382.57 – $1,302,021.12
• Hi Average: $828,056.25 – $1,084,073.58
• Lo Average: $705,150.75 – $927,076.35
• Minimum: $599,808.81 – $854,008.78

Table of Building Costs Per Square Foot for Multi-Family Apartment Complex Block of 10 or more Units – Florida, USA

Note: Minimum-Maximum Range for each Quality Class (400 – 2200 sqft)

Building Cost Breakdown for Multi-Family Apartment Complex, Block of 10 or more Units – Florida

Excavation and Foundations: (9% of total cost)

• Exceptional: $15.60 – $20.59
• Best: $13.17 – $18.00
• Good: $10.53 – $13.79
• Hi Average: $8.77 – $11.42
• Lo Average: $7.50 – $9.81
• Minimum: $6.70 – $9.06

Substructure (Floor Construction): (12% of total cost)

• Exceptional: $20.80 – $27.47
• Best: $17.53 – $23.99
• Good: $14.04 – $18.40
• Hi Average: $11.70 – $15.21
• Lo Average: $10.01 – $13.08
• Minimum: $8.93 – $12.02

Wall Framing and External Finish: (12% of total cost)

• Exceptional: $20.80 – $27.47
• Best: $17.53 – $23.99
• Good: $14.04 – $18.40
• Hi Average: $11.70 – $15.21
• Lo Average: $10.01 – $13.08
• Minimum: $8.93 – $12.02

Roof Construction: (10% of total cost)

• Exceptional: $17.34 – $22.87
• Best: $14.61 – $19.98
• Good: $11.70 – $15.27
• Hi Average: $9.75 – $12.67
• Lo Average: $8.34 – $10.86
• Minimum: $7.44 – $10.02

Floor Finishes: (5% of total cost)

• Exceptional: $8.67 – $11.44
• Best: $7.30 – $9.99
• Good: $5.85 – $7.63
• Hi Average: $4.87 – $6.33
• Lo Average: $4.17 – $5.43
• Minimum: $3.72 – $5.01

Internal Walls and Finishes: (8% of total cost)

• Exceptional: $13.87 – $18.26
• Best: $11.69 – $15.98
• Good: $9.36 – $12.21
• Hi Average: $7.79 – $10.14
• Lo Average: $6.67 – $8.71
• Minimum: $5.95 – $8.02

Ceiling: (Assumed 8% of total cost, same as Internal Walls and Finishes)

• Exceptional: $13.87 – $18.26
• Best: $11.69 – $15.98
• Good: $9.36 – $12.21
• Hi Average: $7.79 – $10.14
• Lo Average: $6.67 – $8.71
• Minimum: $5.95 – $8.02

Built-in Bathtub, Shower: (4% of total cost)

• Exceptional: $6.94 – $9.15
• Best: $5.84 – $7.99
• Good: $4.68 – $6.11
• Hi Average: $3.90 – $5.07
• Lo Average: $3.34 – $4.34
• Minimum: $2.97 – $4.01

Built-in Kitchen Cupboards, Countertops and Bars: (8% of total cost)

• Exceptional: $13.87 – $18.26
• Best: $11.69 – $15.98
• Good: $9.36 – $12.21
• Hi Average: $7.79 – $10.14
• Lo Average: $6.67 – $8.71
• Minimum: $5.95 – $8.02

Plumbing: (12% of total cost)

• Exceptional: $20.80 – $27.47
• Best: $17.53 – $23.99
• Good: $14.04 – $18.40
• Hi Average: $11.70 – $15.21
• Lo Average: $10.01 – $13.08
• Minimum: $8.93 – $12.02

Electrical Installation: (10% of total cost)

• Exceptional: $17.34 – $22.87
• Best: $14.61 – $19.98
• Good: $11.70 – $15.27
• Hi Average: $9.75 – $12.67
• Lo Average: $8.34 – $10.86
• Minimum: $7.44 – $10.02

Special Appliances and Installations: (Assumed 5% of total cost, half of Plumbing)

• Exceptional: $8.67 – $11.44
• Best: $7.30 – $9.99
• Good: $5.85 – $7.63
• Hi Average: $4.87 – $6.33
• Lo Average: $4.17 – $5.43
• Minimum: $3.72 – $5.01

Note: When masonry walls are used in lieu of wood or light steel frame walls, add 9% to the appropriate S.F. cost.

How Much Does it Cost to Build an 887 sqft Apartment in Florida? – Multi Family Housing

Cost Per Unit (USD$ per Unit)

Exceptional:

• Total Cost for 1 Unit: $153,900.19 – $202,838.38

Best:

• Total Cost for 1 Unit: $129,602.96 – $177,139.39

Good:

• Total Cost for 1 Unit: $103,767.61 – $135,689.03

Hi Average:

• Total Cost for 1 Unit: $86,458.44 – $112,363.63

Lo Average:

• Total Cost for 1 Unit: $74,013.06 – $95,691.94

Minimum:

• Total Cost for 1 Unit: $66,026.80 – $88,882.79

Total Cost for Building:

10 Unit Apartment Complex:

• Exceptional: $1,539,001.90 – $2,028,383.80
• Best: $1,296,029.60 – $1,771,393.90
• Good: $1,037,676.10 – $1,356,890.30
• Hi Average: $864,584.40 – $1,123,636.30
• Lo Average: $740,130.60 – $956,919.40
• Minimum: $660,268.00 – $888,827.90

12 Unit Apartment Complex:

• Exceptional: $1,847,802.28 – $2,434,060.56
• Best: $1,555,235.52 – $2,125,672.68
• Good: $1,245,211.32 – $1,628,268.36
• Hi Average: $1,037,501.28 – $1,348,363.56
• Lo Average: $888,156.72 – $1,148,303.28
• Minimum: $792,322.16 – $1,066,593.48

20 Unit Apartment Complex:

• Exceptional: $3,079,003.80 – $4,057,676.00
• Best: $2,592,059.20 – $3,543,978.00
• Good: $2,075,352.20 – $2,713,780.20
• Hi Average: $1,729,168.80 – $2,246,272.40
• Lo Average: $1,480,261.20 – $1,913,838.80
• Minimum: $1,320,536.00 – $1,776,001.40

50 Unit Apartment Complex:

• Exceptional: $7,695,009.50 – $10,143,800.50
• Best: $6,480,148.00 – $8,998,985.50
• Good: $5,187,605.00 – $6,754,451.50
• Hi Average: $4,322,922.00 – $5,631,815.50
• Lo Average: $3,700,651.00 – $4,531,947.00
• Minimum: $3,301,340.00 – $4,426,385.50

100 Unit Apartment Complex:

• Exceptional: $15,390,019.00 – $20,283,838.00
• Best: $12,960,296.00 – $17,713,939.00
• Good: $10,376,761.00 – $13,568,903.00
• Hi Average: $8,645,844.00 – $11,236,363.00
• Lo Average: $7,401,306.00 – $9,569,194.00
• Minimum: $6,602,680.00 – $8,888,279.00

200 Unit Apartment Complex:

• Exceptional: $30,780,038.00 – $40,576,760.00
• Best: $25,920,592.00 – $35,427,939.00
• Good: $20,753,522.00 – $27,137,802.00
• Hi Average: $17,291,688.00 – $22,462,724.00
• Lo Average: $14,802,612.00 – $19,138,388.00
• Minimum: $13,205,360.00 – $17,762,790.00

Financial Projections for a “Best” Class Multi-Family Apartment in Florida

When it comes to multi-family real estate investments, the key to success lies in meticulous financial planning and understanding the costs involved. In this article, we will explore the financial projections for constructing a “Best” class multi-family apartment complex in Florida, based on the latest data.

Estimating Project Funding

A “Best” class apartment complex reflects a balance of quality and cost-efficiency, appealing to a wide range of potential renters. Based on the provided information, the cost to build an 887 square foot unit in such a category ranges from $129,602.96 to $177,139.39. If we were to develop a 10-unit building, the total estimated project funding requirement would be:

• At the lower end: $129,602.96 x 10 = $1,296,029.60
• At the higher end: $177,139.39 x 10 = $1,771,393.90

Calculating Internal Rate of Return (IRR)

The IRR is a crucial metric that reflects the profitability of an investment over time. To compute the IRR, we’d need to chart out a series of cash flows, including the initial investment, followed by the net income generated from the property and the eventual sale proceeds. However, due to the complexity of such calculations and the variability of factors like rental income, expense ratios, and sale prices, we will not delve into the precise IRR figures without more specific data.

Understanding Cash on Cash Return

Cash on cash return is a quick way to gauge the income earned on the cash invested in a property. Assuming we achieve full occupancy and charge a market-competitive rent, we can approximate the annual return based on the initial investment. As operational expenses and vacancy rates can significantly impact this figure, investors should perform due diligence to arrive at more precise estimations.

Multi-Family Mortgage Considerations

For those seeking financing, a typical approach might involve securing a mortgage covering a substantial portion of the project cost. Terms will vary, but a 70% loan-to-value ratio at a 4% interest rate over 30 years is a common scenario in the industry. The annual mortgage payments, alongside the down payment, will form a significant part of the initial investment calculations.

Assessing Rental Yield

Rental yield provides insight into the income-generating capability of the property as a percentage of its value. Based on the potential rental income and the total cost of construction, we can estimate the rental yield to help determine if the investment aligns with the investor’s expectations and financial goals.

The construction of a “Best” class multi-family apartment complex in Florida is not merely a construction project but a comprehensive financial endeavor. Prospective developers and investors must consider numerous financial metrics and market factors to ensure the profitability and sustainability of their investment. With the provided cost data, stakeholders can begin to shape their financial strategies and make informed decisions on how to proceed with such a promising yet demanding venture.