Savannah West

Justification for building 216 unit apartment

❖ Planned city- Savannah

❖ Increase in the population has been mostly in age group 20-34, with income range $12000-$20000

❖ Decreasing house hold size

❖ Little or no multi family construction

❖ Increasing employment rate

❖ Declining vacancy rates from 7% in 1972 to 5% in 1974 to 4% in 1976

Risk and rewards

❖ Developer

❖ Risks:

❖ Subcontractors were inexperienced and undercapitalised.

❖ Expected competition

❖ $1,72,000- 11.8 acre tract land

❖ Rewards:

❖ Appraised expected market value of $4 millions

❖ Chemical bank

❖ Risks:

❖ Credibility of Empire savings Bank

❖ Rewards

❖ Chance to expand direct credit in South Atlantic region

❖ Welsh’s outstanding marketing ability

Financial assumption

❖ The monthly per square foot rent considered for gross income calculation is in the upper range of the comparables.