Figuring land value after entitlement with loan and building in place

[Genna Golden]

Developers, I am trying to figure out my land value in order to contribute it as part of my equity/gp position in a mixed use development project. I have a pro forma for what we believe is our best/most economical use. (3 stories, not the allowed 4 stories to avoid elevator and higher construction costs) with portion of ground floor being retail. About 25 units.  I can work backward from pro forma and use final presumptive sales values. The  issue is that I have a loan on the property and existing building. The development/entitlement would have to include paying off balance of $550k loan. If I choose not to level and develop the 3 unit dated commercial building, I need to refi and find new tenants. Beyond the loan payoff I would need to consider the $410,000  put into down payment. I  plan to pay approx 200k cash involved in the entitlement process. I'm told that entitled land in the area is valued at $30,000 a unit but will need to verify.  Expertise and thoughts welcome.