Feasibility studies often reveal harsh realities. In this post, we’ll explore a feasibility study for listing 3400 NE 2 AVE, Miami, FL.
Initially, we estimate 162 units, resulting in a 31-story building. When factoring in the 243 required parking spots, the building height increases to 43 stories. The zoning regulations allow a maximum of 24 stories, or 48 with bonuses, making the proposed height feasible.
FAR Limitations and Adjustments
The real challenge emerges when considering the floor area ratio (FAR) limitations. The property has a 7 FAR with a 30% bonus, allowing a maximum of 9.1 FAR. Given this constraint, the project is reduced to 33 units and approximately 9 stories—only 20% of the initial estimate.
Balancing Unit Sizes and Parking Requirements
Alternatively, we can reduce unit sizes. If the units are downsized from 1,040 SF to 500 SF, the project can accommodate 66 units. However, this change increases the required parking spots from 50 to 99. The optimal return will depend on a balance between SF and rent values.