Land Development or Sale

[Brandi Jo Newman]

Hi All - I'm posting here for the first time about a possible land development in Kilgore, Texas. This particular tract was purchased 12 years ago as a buy and hold investment. It has appreciated on the tax rolls but we have yet to pursue any development until now. 

This property is located on IH 20 and Hwy 31/259 interchange. TxDOT has finalized their flyover improvement for safer and more efficient on/off access. 

I'm brainstorming here with all of you... as we move into a changing economy we would like to unload this piece of property to free up equity.

Here is the listing on LoopNet -  https://www.loopnet.com/Listin...

Our portfolio is over 29 commercial units as of today not including this property. I've been thinking of having investors join us but with this uncertainty I'm not sure if there will be anyone willing to wait the 5 to 7 years for interchange improvements. 

Any thoughts or comments are more than welcome!

Thank you for your time.

[Barrett Bridgewater]

@Jamie Hora @Brandi Jo Newman The unfortunate thing about this flood zone it is an A-Zone. That means FEMA has not determined what the "flood level" is in a 100-year rain event. That can make it difficult to develop.

I can imagine you dont want to sink much more cash into this property.  However, here is an idea we have seen work pretty well:

1. Run a hydro model to determine what the flood level would be in this area (essentially do the work that FEMA didnt complete.)

2. Also do a spot elevation survey to get a true lay of the land.

3. Compare the two. For the areas of land that are above the flood level you can then petition FEMA for removal of that flood designation. It will also provide intel on how much fill/dirt might need to be brought in.

The result here is more land to build on with more cost effective permits.  

You might gain more value on a deal.  You would do a lot the work the developer doesn't want to risk their own money on just to know if this land can achieve their concept.  Hopefully by doing it, it could be more marketable.