Covered Land Play - Colorado Springs- Close to Old Town

[Rebekah Scott]

Hi All, 

I have a fascinating project that I believe is a goldmine. It is a covered land play; meaning, there is a 5-plex that is turnkey and completely occupied on this 15,000sqft lot. Rents are high so it pencils as a 4.3% cap rate (conservatively). However, the lot is zoned for up to 8 additional units. I spoke with city planning and they said the lot used to be two lots decades ago, and to re-split it requires an email to them to let them know. There is huge value in not having to go through the rezoning process. They also said that building another quad on this land would be extremely easy. So, that got me thinking, and this is where I would love to hear from you all! Couple strategies come to mind. 

1. Purchase the property, sit on it do nothing. 

2. Purchase the property, sell off the land, and use that money to recast the loan and create more cashflow. 

3. Purchase the land, build a 4-plex on the lot. Depending on financing, if it is cashflowing- keep it. If it makes more sense to then sell off the land, great do that. 

4. Purchase the land, build a 4-plex, but zone them as condos and sell them off individually.

My ask- I need partners to make this happen. Also, advise. Does anyone have experience with something like this that they can share some insight on? IF there is someone interested in this deal, please reach out to me directly because I only shared a limited amount of details on here. 

Thank you all!!!