Reata West - A Multifamily Development

Since late 2008 I've had the opportunity to market a 224 unit apartment development project in Azle, TX by the name of Reata West. It's a 19 acre planned residential apartment complex with commercial frontage component to be built in two phases, optionally financed under HUD D-4 program. The unit mix of Reata is 1,2, and 3 bedroom units, 60 garages. The commercial component is 13,000 square feet and 6 units. The things that are completed are: market study, environmental study, architectural plans, engineering, wetlands study, and permits. The project conforms to HUD D-4 program requirements and has been previously approved by HUD. The reapproval process is currently available. The owner is also offering to lend up to $550k towards the prospective investors capital requirement.

I personally believe that this is an excellent investment opportunity and it has made since to a few individuals and development companies. There hasn't been an apartment complex contructed in Azle since the mid-90's. Unfortunately those past opportunity seekers tend to not close when all is said and done. Based off of my research and the market study, Reata West will be a great find for some lucky guy.

Cost of Materials is Rising.. (Just like everything else these days)

The cost of everything from gas to movie tickets has been on a steady incline for the past 18+ months and so has the cost of construction materials. “Materials costs for construction have greatly outstripped the Consumer Price Index and even the overall Producer Price Index in the first four months of 2011,” says Ken Simonson, chief economist for The Associated General Contractors of America.

“However, contractors are so hungry for work that they are continuing to promise to deliver jobs for almost no increase in price, in spite of their having to pay more for materials,” says Simonson. “That’s a pretty dangerous situation for contractors who have already cut their margins to a minimum, or maybe into negative territory.”

Pretty scary to say the least. Seems as though contractors are doing everything in there power to stay alive in the construction business.

My First Day Back, RE Construction while being under Construction!!

It's been 5 years since I've been in college. What better way to jump back in than taking a 10 hour on a Saturday class right?! Talk about getting hosed... Pretty informative though, especially learning how much the economy depends on Real Estate Construction. Guess what: if I wanted to own/operate a construction company I don't need to be licensed in the state of Texas! Better check my references though.. If I were to create a product or building material, I'd definitely do my dornest to get spec in with a builder..can you say auto-pilot? I'm really glad I've made the decision to take REAE 5317. I trust that it'll pay dividends in the multifamily development world. Did I meantion the class is taught by Micheal J. Fox's little brother?? He goes by J. Russell.