Does this cluster development make sense?

[Alam Faruk]

I'm under contract to purchase an REO residential land (vacant, 30 acres) in a prime residential part of north/central NJ. Preliminary approval for cluster development is in place for 12 SFHs, although some permits have since expired. The lot is immediately surrounded by high value SFHs -the elementary school rating being 9. The optimum price point for the area is likely to be 850k for a new 3500 sq ft SFH. The cost of improvements is estimated to be around 1.2 million USD, including the land. Estimated ROI is around 22%. This is my first property development project in the USA. Does this make commercial sense?