Land Use Questions (184 Acers Heavy Industrial) FL Panhandle.

[Daniel Bakalo]

Good morning Bigger Pockets,  

My brother and i are still fumbling through our Real Estate investment journey hoping to finally quit our day jobs and just do REI full time. We still have a long way to go but eventually we'll be able to leave the oilfield and 90 hour work weeks just to focus on something we have more passion about.

We recently purchased what we feel like is our best deal yet but would like the input of a more experienced investor for there opinion.  We bought a large parcel of land that a in previous times was the largest employer in our town.  It was a chicken processing plant for a large chicken farm. The actual plant has since been torn down but the company used the 3 houses on the property as offices and the large 8,000+ sq ft shop for truck maintenance.  

In order to cover the mortgage payment we moved a tenant into the Truck shop fairly quick after closing along with another local company who is harvesting sod off the fields. The Shop rent will bring in $1500 a month until March of 2022 at which point it increases to $2500 a month until 2026.  We gave the tenant a discounted first year rent in exchange for updating the building and making minor repairs.  The Sod fields pay us $9200 a year ($766 a month) along with half of all the profits from the sale of Hay cut off the property while sod isn't being harvested.   While that will only pay out once a year after the it could result in up to another $15000 a year on a big year.  Without the hay profit counted and at the current rents of $1500 + $766 the property cash flows about $300 a month after expenses.  The Truck shop lease isn't a triple net but he is to cover all repairs and maintenance on the building.  We pay the property taxes.  The property still has 2 houses and one apartment on site that once rented could bring in $1300, $1100, and $700 a month.  Those houses will require work to get rent ready though so we haven't done much with them due to funds and lack of time off of work.  We estimate about $50k on the high side to get all 3 properties updated and rent ready.  We've typically been cash buyers up until the purchase of this property so we have no experience on funding repairs like this unless its out of our own pocket.  

I said all that to ask this.  What do some more experienced investors think would be the best use or exit of the property?  We would love to see a large company move in and use the land to its potential and make the local once again one of the largest employers in the town.  Its our home town so its something were partial to.  The property has 3 phase power throughout the entire property.  I would have to reverify but a 6" gas line is ran to the location and i one point the processing plant was the largest user of natural gas for our town.  Entry into the property has turning lanes along with frontage on Us Hwy 90.  Its 6 miles from Interstate 10 with no truck restrictions.  There is no rail spur on the property but the property fronts a rail line and has the ability to have a Rail Spur installed.   Would i make more sense to pursue a Commercial/Industrial development on this land or just use what's in place and be happy with it. The houses are Grandfathered in and can be used as dwellings but no other Residential house can be built without rezoning the property.  Which we feel a lot of the value in the property is due to its zoning.  

How would one go about pursuing companies how many be interested in a ground lease.  The properties as stated in the title is located in the Florida panhandle (30 miles for beautiful Beaches) which could be a good tax benefit to many companies along with no state income tax to the work force.  Along with i feel like would be strong support from the local government to see a major employer move in. 

If that's to far fetched would it be best just to find a way to get the capital to improve the remaining houses on the property and rent them out as residential units and be happy with what we can get?

Does anyone have any information on Cell Tower leases?  The property has the highest elevation of most of the surrounding land and has plenty of room for a Cell tower. 

I'm sure I'm leaving out tons of information and would love this to turn into a discussing with me answering any left out information that could lead us to gathering valuable information or contacts.  We feel we made a great purchase but now kind of overwhelmed with what may be the best use of the property.  I hope we can get lots of experts chiming in and help with this journey were taking.  Forgot to add that the population of the closest town is 6,000+ with strong growth every year.

Thanks everyone.

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