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Updated 10 months ago on . Most recent reply
Recommendations and insights on commercial lot
Greetings.
A non-profit has offered a land swap for a residential property I own. My lot is vacant, in a depressed area. I've considered building and renting single or multifamily, but do not currently have the resources for it, so I'm taking offers on it. This non-profit has offered a commercial lot appraised at about 3x the value of my lot. I'm surprised by that value and would have thought the actual value is closer to the assessed value of around 1.5x the value of my lot -- the neighboring lot is identical but has a building and businesses on it, and is appraised at just $100k more than what their appraisal shows for the unimproved lot.
The commercial lot is also vacant, on a commercial strip (mom n pop retail, banks, gas stations, etc.) 2 lots down from a moderately busy intersection in a redevelopment zone. Approx. 100' frontage, 0.5 acre. Avg daily traffic ~20k vehicles.
I'm not in a position to build anything (no build experience, little cash on hand, slim chance of large loan approval), but could look into selling it later. I'd also be open to a ground lease, but I'm not sure whether it meets the conditions that would make that a likely scenario. Would like to see what other options are out there for something like this. If not the swap, the non-profit might instead offer as much as 1.25x the value in cash, in which case I might consider selling or could just keep it for now (taxes are virtually zero).
Does anyone have insight or suggestions on commercial real estate that could help inform this decision?