The Power of AI in Feasibility Studies: Uncovering Real Potential for Real Estate Investments

Feasibility studies are crucial in real estate investment, particularly for Value-Add and Opportunistic funds. The AI assistant provides preliminary zoning data on units allowed, parking requirements, maximum building height, and FAR, helping uncover a property's true potential.

The AI-Assisted Feasibility Study in Action

The AI assistant analyzes property 133 NE 24 ST, initially a promising 161 units development requiring 241 parking spots. This results in a 43-story tower—well above the 12-story limit. However, the most limiting factor is the 6.25 FAR, which includes a 25% bonus.

Adjusting for Constraints and Realistic Potential

The assistant reduces the project to 12 stories, and the FAR becomes 11.80, still above the allowable 6.25. After adjusting the project to 6.25 FAR, the building is 7 stories and only 23 units. This outcome may disappoint, but it reflects a more feasible development for the site.

Olivia Ramos

Author Olivia Ramos
Founder and CEO of Deepblocks, holds master's degrees in Architecture from Columbia University and Real Estate Development from the University of Miami. Her achievements before Deepblocks include designing Big Data navigation software for the Department of Defense's DARPA Innovation House and graduating from Singularity University's Global Solutions and Accelerator programs.