
$192M for the Site of the Sales Force Tower (2013) - brudgers
http://www.businesswire.com/news/home/20130326006392/en/Boston-Properties-Hines-Close-Record-Land-Sale
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brudgers
To get amortize the cost of the land down to $100 per square foot, would
require 2 million square feet salable space. At a high 80% efficiency, that's
2.5 million square feet of construction. At 80% lot coverage and a prismatic
box, that's 63 stories.

All that before parking. 2 million square feet of 1000 sf apartments with one
space per apartment is 1000 parking spaces. At an optimistic 150 spaces per
acre of parking deck, that's another 7 stories, so let's call it 70 stories of
building.

Before construction, the 1000 square foot apartment is carrying at least
$121,000 of base cost ($100,000 x 1.10 [overhead] x 1.10[profit]). At $300 a
square foot of construction cost, it's already a half million dollars. And
that's with mediocre finishes, average appliances and marginal amenities.

Because upgrading everything to position the apartments in the million dollar
range increases profits, that's what a developer is going to do. That's why
housing is so expensive.

