Renting or leasing real estate in West Hollywood will cost anywhere from $5000-$6000 per month for a spacious 3 BR 1 BA apartment unit. Purchasing a new 3 BR 3 BA apartment in west Hollywood can coast between $900,000 to $1,200,000 and upwards. In our Melrose location, the cost to build is $240/SF and the cost to rent is $450/SF and the cost to own is $950/SF. We feel there is a huge demand for top-of-tier, best location, housing in West Hollywood. We do not think that rising interest rates will have an effect on the real estate micro-climate here in central Los Angeles.
An insulated concrete form (ICF) system is one of the many “beyond green” building choices used. This building method has a long list of unique features making it the healthiest choice for discriminating homeowners. An ICF concrete wall and floor system enables a “building envelope” that is mold free, will not burn, while being ultra- energy efficient and very durable. ICFs also allow a much faster construction period than framing with tradition lumber.
From the ground up, no building technology or construction detail will be overlooked. Each apartment will become a “safe haven” since the entire structure is fireproof and earthquake safe. In addition, the concrete walls and floors naturally stabilize the humidity levels within the building. The other building technologies used will dramatically reduce exposure to low- level toxins while providing plentiful amounts of healthy fresh filtered air, pure living water and abundant natural light and outdoor living space.
These new apartments will look as though they’ve been part of the grandeur from our past, yet hidden underneath the artisan craftsmanship and modern Euro-Italian design is a thoroughly 21st Century execution of building methods and complete utility/services infrastructure.
The result will be an enclave of unique apartments that appear timeless and modern in the same moment. However, inside their walls will be systems and technologies we will take for granted decades from now. This project is destined to become regarded as one of the premiere Platinum “green building projects” in the United States and world-wide.
Our strategy is to sell all three units in a FSBO process. Through our work with our architect and structural engineer, we know that Unit Nr1 will value at $1.1M, unit Nr2 will value at $1.3M, and unit Nr3 on the top floor will value at $1.5M. With a total valuation of all three units at $3.9M gross. The estimate is conservative when looking at comparable homes within a s few streets from the Willoughby that sold for well over $4M in 2016-2021.
Jorg-Ulrich Mohnen, M.Sc. MBA owns the current property at 901 North Curson Avenue which four independent sources have valued at $1.5M. The cost to buy the property as a tear-down and incorporate the plans and complete the building is exactly $1,662,455. This amount is the asking price for this property and all the building plans and investments to date.
COST OF CONSTRUCTION
The construction costs total $1,722,963. Adding the cost to buy the property and plans with the total construction costs, we get the final total requirement at $3,345,418. We will add the usual 20% contingency fee requirement to this figure to adjust for overances and our final cost to erect the Willoughby equals $3,847,230