A new small apartment in San Francisco cannot be built for less than $800k these days, so coming in a $333k per resident is not too surprising to me in a similar high-cost city with a building with a ton of amenities.
An apartment for $800K is understandable. A small bedroom @ $333K is not.
If they already own the building, it is only construction costs whereas buying an apartment is possibly extortionate land or property prices from the current owner, which is purely demand-driven.
Looking at the blueprint, it seems like 7 of the 9 floors will be solely suites. I assume one floor will be dining hall which I wouldn't count as an amenity, which means only 1 of the 9 floors actually has amenities beside the small common space each suite has.
If they already own the building, it is only construction costs whereas buying an apartment is possibly extortionate land or property prices from the current owner, which is purely demand-driven.