Agenda - City of Santa Monica

APPENDIX A - TABLE 1
ESTIMATED CONSTRUCTION COSTS
BASE ZONING ALTERNATIVE: TYPE V CONSTRUCTION
22 MARKET RATE APARTMENT UNITS & 6,270 SF OF RETAIL SPACE
1320 SECOND STREET
SANTA MONICA, CALIFORNIA
I. Direct Costs 1
Off-Site Improvement Costs $200,000
On-Site Improvement Costs 15,000 Sf Land $15 /Sf Land 225,000
Parking Costs
1st-Level Subterranean 32 Spaces $30,000 /Space 960,000
2nd-Level Subterranean 0 Spaces $35,000 /Space 0
Building Costs
Residential 17,130 Sf GBA $110 /Sf GBA 1,884,000
Retail 6,270 Sf GBA $120 /Sf GBA 752,000
Tenant Improvements - Retail 6,270 Sf GBA $30 /Sf Retail GBA 188,000
Contractor Fees/General Requirements 14.0% Construction Costs 589,000
Builder's Risk Insurance 2.0% Construction Costs 84,000
Contingency Allowance 5.0% Other Direct Costs 244,000
Total Direct Costs 23,400 Sf GBA $219 /Sf GBA $5,126,000
II.
Indirect Costs
Arch, Eng, Consulting & Construction Mgmt 8.0% Direct Costs $410,000
Permits & Fees/Impact Fees 2 23,400 Sf GBA $14 /Sf GBA 329,000
Affordable Housing In-Lieu Fee 12,900 SF Net Residential $14 /Sf Net Residential 176,000
Taxes, Insurance, Legal & Accounting 3.0% Direct Costs 154,000
Marketing and Leasing Costs
Marketing - Residential 2.0% Direct Costs 103,000
Leasing Commissions - Commercial 6,270 Sf GBA $3.00 /Sf GBA 19,000
Development Management 4.0% Direct Costs 205,000
Contingency Allowance 5.0% Other Indirect Costs 70,000
Total Indirect Costs $1,466,000
III.
Financing Costs
Interest During Construction 3 $7,418,000 Financed 5.50% Interest $469,000
Loan Fees
Construction Loan Fees $7,418,000 Financed 2.50 Points 185,000
Permanent Loan Fees 4 $6,868,000 Financed 2.50 Points 172,000
Total Financing Costs $826,000
IV. Total Construction Costs 23,400 Sf GBA $317 /Sf GBA $7,418,000
1
Direct costs assume prevailing wage requirements will not be imposed on the Project. KMA assumes Type V construction standards for the Base
Zoning Alternative.
2 Based on the estimate of the fee cost per square foot of GBA provided by City staff for the Proposed Project.
3
Assumes an 18-month construction period with a 60% average outstanding balance, and a 3-month lease-up period with a 100% average
outstanding balance.
4 Assumes a 6.13% capitalization rate and a 65% loan-to-value ratio.
Prepared by: Keyser Marston Associates, Inc.
Filename: 1320 2nd Street_4 23 13; PF - Base; trb