The locally based real estate development company signed a contract to sell the planned Residences at Bay Harbor to Royal Investments & Realty Group Inc.
If the deal closes under the negotiated terms, Richard Astrom, National Residential president and chief executive officer, expects his publicly traded company to earn about $2.65 million in gross profit, according to his prepared statement.
The Miami-based company, which operated as National Rehab Properties Inc. up through last year, acquired the land for about $850,000 and expects to spend about $6.5 million to build the 60 units. Additional expenses are estimated at about $2 million.
The total $8.5 million construction cost equates to $141,667 per unit. The $12 million sale price equates to $200,000 per unit.
The project has met all local building and zoning requirements and the company is now awaiting permits, according to Astrom's statement.
Besides the Bay Harbor project, the company is working on five multifamily projects where the company owns the land and has either started construction or is in the planning and permitting stages.
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