Savannah West
description
Transcript of Savannah West
Savannah West
Justification for building 216 unit apartment
❖ Planned city- Savannah
❖ Increase in the population has been mostly in age group 20-34, 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
❖ Welsh’s outstanding marketing ability
Financial assumption
❖ The monthly per square foot rent considered for gross income calculation is in the upper range of the comparables.