Residential home - future $14 million Public Market Development

[Angelo Aguirre]

Hello! There is a home for sale right across the street from what is currently the city's fleet maintenance, a large warehouse style building, not very attractive. However, the city and developers have been working over the course of four years on plans to move the fleet services building to another location. The development plan for that space will include a "Public Market" and new private commercial space, offices, and housing. According to the article, "The private component could bring $30 million to $40 million in investment for a first phase with more in a second phase..." Furthermore, "The properties are in two zoning districts, both allowing buildings up to five stories with height under a conditional use." Housing could be up to six stories. The city budget plans construction to start this year, 2018.

My question is whether the house currently for sale will be affect positively by the major renovations and transformation of this area. The house is directly across the street from what will be restaurants, multi-family housing, and private commercial space. The front of the house faces the future development. I've had my eye on this property for a while as a potential investment property. The thing keeping me away is that it is on a busy intersection with traffic lights. It's a 1000 sqft, 3 bed/1 bath house that currently rents for $1395/month with a purchase price of $180k. Coming in under 1% it doesn't seem like the best option for cash-flow, however, with the future developments in mind, could the house have more potential for overall value increase? Thanks!