- Property
- Planned multifamily development
- Size
- About 100 units
- Location
- Florida
- Year
- 2025
- Work
- Pre-construction assessment
The situation
In 2025 a client asked us to assess a multifamily project of about 100 units in Florida before construction, and on paper the deal looked good.
What we found
The project was pitched as apartments for the employees of local businesses, but the site was on the outskirts of a tourist market. The local median wage didn't come close to supporting the rents under the one-third rule, where rent shouldn't exceed a third of gross monthly income. The comparable properties were all offering heavy rent concessions, and single-family homes nearby were cheaper to buy than it was to rent an apartment.
Put together, the area could not support the project. Our assessment showed the property would have struggled during lease-up, and it would not have met debt service once the construction loan converted. Based on that, our client walked away from the deal.
We keep our clients and their properties anonymous to protect their privacy, and every client gets the same confidentiality. Why we don't post client names
This work was part of our multifamily consulting. If you have a similar situation, get in touch.