land development, I feel I'm sitting on gold mine

[Tab Teehee]

I'm sitting on two parcels of land...16 acres residential and 11 acres commercial with 8 acres in between that my 20 unit apartments sit on. We're in the middle of a remodel on the apartments which is where our attention has been focused. Recently we were approached with a cash offer on the 16 acre parcel. The land isn't on the market currently and this potential buyer just inquired through a family member he was acquainted with. We had an appraisal 1.5 years ago that valued it at 220k and this was before google announced plans of a $600M expansion to their data center located near this property. If I know how to devolve it I would! Where does someone with no knowledge start? It's the only available land of its size inside city limits with all utilities available. I just believe the 200k cash offer is waaaay to low.

[Nik Moushon]

@Tab Teehee 

DO NOT sell the land.

DO NOT contact local contractors. 

DO contact a local (ish) Architect. 

The reasons I say this are:
1) - If you are not hurting for money holding onto that land will only help you in the long run. That person contacting you is hoping to take advantage of getting into the market before Google comes in and is offer WAY cheaper than its worth. Even if you decide developing it is not something you want to do the value will only increase as housing damnd increases because of the new jobs.

2) - Do not go to a contract and start talking to them. Nothing against contractors but they only have their bottom dollar in mind. Its just how that industry runs. They will try to convince you to either spend as much as possible or as little as possible. Either way, they make a killing and you get a sub par product. You only have to look at the nearest mass produced sub division that is developed and built by a contractor to know exactly what I'm talking about. 

3)  - Shop around and find a somewhat local architecture firm and start talking to them. There are two reasons you want to do this. One is that they will know FAR more about the local codes and regulations than a contractor as well as knowing how to design something that is reasonable priced but looks high quality. This will be able to get you the best design possible. Second is unless you go single family sub-division or a bunch of 4-plexs you will HAVE to hire an architect anyway. That's because anything over 4 units will require you to follow the IBC (International Building Code) and require an Architects seal. This could vary some between states, I'm in WA, but I'm pretty positive on this. Architects also act as a mediator between you and the contractor and since you hired them they keep your interests a priority.  

Disclaimer I am an architect out in WA state so I will call out the somewhat bias-ness of my post now. The office I'm at is currently working on several apartment developments right now. One project being an 84 unit complex on 5 acres. I wont go into detail on that or more of why you should hire an architect unless you want me to. Feel free to PM me or just keep the conversation going here.

I will add that financing a new build is very different than buying a building. Make sure you really understand the differences and the requirements before you just jump in. Not that its not worth it just that its different.