Assessing Pricing Scenarios for 231 E Flagler ST: A Developer’s Perspective

We analyzed the 231 E Flagler ST listing by running it through multiple pricing scenarios, taking into account construction costs and potential rents based on the developer’s vision.

Rents for 1,200 SF units in the area range from $2,800/mo to $11,000/mo, heavily influenced by the target market and the building’s unique value proposition.

Key Assumptions:

321 units at 1,200 SF
$3.49/SF/mo residential rents
35% OpEx (operating expenses)
4% Vacancies
8,000 SF of retail
$65/SF/yr retail rent
$282/SF hard cost
15% soft cost
6% contingencies
12,345 SF of demolition at $9/foot

Purchase Price and Return on Cost Relationship

Using these assumptions, we can determine the relationship between the purchase price and return on cost (ROC) as follows:

5.72% ROC – $8,000,000 purchase price
5.50% ROC – $15,000,000 purchase price
5.28% ROC – $23,000,000 purchase price

The NOI is approximately $10M.

Olivia Ramos


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