Scribd Logo
Upload

Welcome to Scribd!

  • Savannah West

    Uploaded by

    Ronak
    384 views5 pages
    The document proposes building a 216-unit apartment complex in Savannah, Georgia. It cites increasing population growth among 20-34 year olds, decreasing household sizes, lack of multi-family construction, and declining vacancy rates as justification. It notes risks for the developer include inexperienced subcontractors and expected competition. The land was purchased for $1,72,000. Chemical Bank is also involved and sees an opportunity to expand credit in the region through the developer's strong marketing abilities, though there are credibility risks with the lender. Financial assumptions take the upper range of comparable rents for income calculations.

    Original Description:

    Case study Solution

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document proposes building a 216-unit apartment complex in Savannah, Georgia. It cites increasing population growth among 20-34 year olds, decreasing household sizes, lack of multi-family construction, and declining vacancy rates as justification. It notes risks for the developer include inexperienced subcontractors and expected competition. The land was purchased for $1,72,000. Chemical Bank is also involved and sees an opportunity to expand credit in the region through the developer's strong marketing abilities, though there are credibility risks with the lender. Financial assumptions take the upper range of comparable rents for income calculations.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    384 views5 pages

    Savannah West

    Uploaded by

    Ronak
    The document proposes building a 216-unit apartment complex in Savannah, Georgia. It cites increasing population growth among 20-34 year olds, decreasing household sizes, lack of multi-family construction, and declining vacancy rates as justification. It notes risks for the developer include inexperienced subcontractors and expected competition. The land was purchased for $1,72,000. Chemical Bank is also involved and sees an opportunity to expand credit in the region through the developer's strong marketing abilities, though there are credibility risks with the lender. Financial assumptions take the upper range of comparable rents for income calculations.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    Savannah West

    Justification for building 216 unit


    apartment

    Planned city- Savannah


    Increase in the population has been mostly in age group 2034, with income range $12000-$20000

    Decreasing house hold size

    Little or no multi family construction

    Increasing employment rate

    Declining vacancy rates from 7% in 1972 to 5% in 1974 to


    4% in 1976

    Risk and rewards

    Developer

    Risks:

    Subcontractors were inexperienced and undercapitalised.

    Expected competition

    $1,72,000- 11.8 acre tract land

    Rewards:

    Appraised expected market value of $4 millions

    Chemical bank

    Risks:

    Credibility of Empire savings Bank

    Rewards

    Chance to expand direct credit in South Atlantic


    region
    Welshs outstanding marketing ability

    Financial assumption

    The monthly per square foot rent considered for gross


    income calculation is in the upper range of the
    comparables.

    You might also like