Teardown+rebuild 100 year old building due to zoning change?

[Larry H.]

Hi, I currently own a 8 unit apartment building in an area that is very likely to be rezoned soon. The building is around 4.5k sqft and is a bit over 100 years old and sits in a 5000 sqft lot.

A proposed rezoning will allow the building to have a floor area ratio of around 4, which allows us to build a building with around 20k sqft or more. The building currently generates around ~8k income a month and I own it outright. I also fully own another building that generates another ~8k a month.

I've never approached a situation like this before and was wondering what next steps are for calculating breakeven and such. If needed, I can likely pull around 500k-1m of capital from my more liquid investments as well as remortgage my other property into this project though I understand this won't be enough and I will probably need a construction loan.

I suspect others in the area are also planning to do what I am doing as well because recently I've been receiving multiple unsolicited offers for my property at well above market price. If this is true, it may depress rental prices in the area when the new buildings come up because of increased supply.

I normally look online for this but in this case I don't even know the terms to google for.

What are my next steps here? Is this something I contact a developer for? Any topics I should research?