Host: Jesus Henao
Topic: Fees And Construction
Guest: Norris Whitmore, Owner Norris Construction
The Commercial Real Estate Hour – Fees And Construction – September 10, 2018
On this episode of The Commercial Real Estate Hour, Host Jesus Henao discusses how much in fees it costs to build residential buildings and other hidden costs of construction in the city of Santa Clarita.
Jesus Henao, the principal at LEOLA, has over 24 years of commercial real estate experience as an investor and broker. We hope to discuss the difficulty and the highly expensive cost to do business in Santa Clarita that is not widely explored, but it is a topic that should be mentioned more for individuals who are thinking of starting a business.
We have created a sample plan to demonstrate what the costs might be if you are interested in the endeavor of creating your own business in Santa Clarita. If we were to find a property in Newhall and build a 20 unit or a thousand sq. foot, it would cost about 5 million 5 hundred thousand only on construction. There are various steps to begin the complex process of planning your analysis.
Previous Episode: CoStar – The Commercial Real Estate Hour – August 27, 2018
You would send your plan analysis to the Planning Commission, which takes about a month to receive their feedback and will only approve your plan based on the specific guidelines they provide. The different costs and fees you should expect are from EIR report, initial study fee, conditional use permit, architectural design review, landscape plan and check inspection, hillside development review, sign review, building permit, and electrical.
Norris Whitmore, a general contractor who specializes in custom homes and has been building in the valley for almost 40 years explains that various fees are factored in each door that would be $12,000 to $20,000. The approximate total would be around 50,000, multiply that to the 20 units, resulting in 1 million dollars. He suggests that the big developers get breaks on a variety of fees because of building communities, however, the little guy who’s trying to build an intel project is the one who gets hit hard with the fees. It’s difficult to make a living in the area and it goes back to the continually rising fees by City Council who make the budgets and the Planning Commission who approve them.
There’s a rising increase in homes being built in Santa Clarita, but not many can afford those single-family homes. This demonstrates that there’s an abundance of ax revenue and fees that the city is collecting but making it difficult for many individuals to make a living due to the rising prices.
LEOLA Commercial Inc. is a boutique commercial real estate firm specializing in the sale of Multi-family Apartments, Senior Housing, Tax Credit Properties , Retail, Land for Development, Industrial, NNN and Office.
LEOLA Commercial Inc. is a Southern California based investment real estate advisory and brokerage firm founded in 2004. Its Principal Jesus Henao having over 24 years of commercial real estate experience as an investor and broker.
We prides ourselves on old world principles of customer service and personalized representation. Henao is also the host of “The Commercial Real Estate Hour” on KHTS Mondays at noon.