Will a 7/11 help increase the value of my home?

Question

Hello,

I purchased a new build in Frederick, MD about three years ago. It was my first home (still my only home) and my goal was to househack it until I was ready to leave the DC area. I had roommates paying about 75% of my mortgage while I lived there for the first two years and over the last year I moved out and a new tenant is paying 100% of the mortgage for me. I'm breaking even but gaining equity.

When I purchased they told me that once the residential section was complete the construction on commercial and retail properties would begin. They told me a grocery store, bars/restaurants, coffeeshops, some retail, and even a hotel would be moving in. Breaking ground on that side should have begun after three years based on the timeline that they provided when I purchased my condo. We are past the three year mark by about 7 months and nothing that was promised has begun. However, I've been told that a 7/11 is now being built.

Looking for some some advice. I purchased the house with the intent of it being a stepping stone to something in a less expensive market that I could use for some additional monthly income. My goal was to hold on until the community was built and hopefully get some appreciation out of it. With this latest news, I'm thinking that maybe I go ahead and move on.

My question is; is the 7/11 a sign of more things to come? Or is it pretty much a desperate attempt by the developer to get SOMETHING in there?

Thanks for the advice. First post! Long time podcast listener and hoping to get more involved in the BP community.

Cheers!

Solomon Morris · Answer

These bigger brands (7/11, dairy queen, subway, walmart, mcdonalds etc) conduct an extensive amount of research before deciding to break ground.  I'd feel good about your decision

Lowry Coe · Answer

Appreciate the advice y’all! Quit my job to start a business so money is tight. Very easily panicked these days 😅 I’ll probably hold tight on it as long as I can keep it filled.

Jameson Sullivan · Answer

7 Eleven is on a tear opening up a ton of locations here in WA and they definitely aren't going into locations to appease developers who "need to get SOMETHING there."

Hang tight if you can, you'll be fine.

Frank Geiger · Answer

7/11 likely dumped a ton of money into research on the area and saw a potential for something (returns, traffic ability, growth, etc). You can always check with the city and see what kind of permits and planning they have for the area. Usually, that's were the hold up is. The building will happen fast if they see the opportunity. Don't hold your breath and invest for the long-term.

Lowry Coe · Answer

Got it. Sorry relatively new to this, I thought I was providing a lot of information. It's about 2 miles from downtown frederick. The community is approx 600 units of condos, townhomes and single family homes. All built in the last 4 years. So far (according to the Zillows and other products like it) my property has appreciated by 1% about 20-40k depending on the site you use - and seconded by my real estate agent. It was sort of a general question since in my mind a 7/11 isn't exactly the kind of construction that I imagine would be built in an area that has a ton of high aspirations. Like I imagine the property developer has a checklist of like Whole Foods and Starbucks and moves on down the list trying to sell the space. My thought process was that 7/11 most likely isn't very high on that list and they may have exhausted or failed to convince some of those flagship brands to move in.

That's my general thought process.