Easton Pharmaceuticals, Inc. (EAPH)

[i_Trade]

(Repost) wonder what the normal profit margins are for condominium developers.

Here’s an example of a 200 unit building with an average unit size of 1,000sf. In this example the profit comes out to about $20mil (before taxes). Now we have EAPH that says they can take 42 units and profit $30mil? Just more fantasy for sale here, nothing else.

“We've developed a few thousand in Toronto. The math is simple but the variables of land cost, construction cost (trades and supplier pricing), inflation on all other costs, VERSUS, Market sale prices of the Units is the ongoing challenge.
Right now if you're building 200 units with a composite average of 1,000sf and you can sell at an average of $650/sf (x 85% for saleable area), and your overall cost is $450/sf, here's the simple answer:
Project Revenue - 200,000sf x 85% = 170,000sf x $650 = $110,500,000
Project Cost - 200,000sf x $450 = $ 90,000,000
Project Profit Margin (before taxes) = $ 20,500,000”



https://www.quora.com/How-much-money-does-a-condo-developer-make-from-a-condo-tower-in-Toronto

Here’s some math for EAPHs deal IF, and that is a mighty big if, they actually accomplish anything.

42 units x 2,500sf = 105,000 sqft

So if they make the same as the company that built IN Toronto then realistically they’re looking at $10mil

EAPHs cut is 50% so that gives them $5mil

Considering this property is outside of Toronto they won’t fetch the same price/sf as condos in Toronto so IMO EAPH will be lucky to take home $3.25 mil. Again, IF they get anything done - highly unlikely.