We are into it for $50-60k with another $20-30k we will owe for the site plan development that is needed for a city permit. We are running the lease application and the permitting concurrently because there is no point in getting a lease if we can't get a permit and vice versa.I'm a little confused. Are you already out $80K in development costs? If not, just bid what you think it's worth. Appraisals are a soft science at best. If its over-appraised, you're probably better walking away even if you have something invested in the project. If the real estate costs are off in the wrong direction, the project is unlikely to work in any event.
At this airport there is another, interior, project that has 12 hangars they built in 2 phases. The first 6 sold for $750k each in a few weeks. The second set are priced at $900k, but I'm not sure their status right now. But there is pretty high demand for hangars that will fit turbo prop and light jets. What we really want is a hangar for our plane and an office for our business. But you can't build one hangar and/or one office. Hence the whole project.
The numbers look like they'll work regardless. I just hate the idea of paying an extra $30k+ per year on the lease. But airport developments are not normal real estate. Not that I'm an expert at normal real estate to begin with.
Statistics: Posted by Cooperd0g — Sat Sep 28, 2024 8:42 pm — Replies 7 — Views 1119