All Forum Posts by: Julie Nealey

Are you looking to start small, and only multi-family? 

2.68 acre MIXED USE/COMMUNITY BUSINESS   (PHOTO DOES NOT REFLECT CURRENT PARTIAL CLEARING & GRADING)

PRE-APP APPROVED 

PRIME RETAIL LEASES FOR $40-$45 NNN WITH EXCELLENT FRONTAGE ON MAJOR STATE ROUTE

GREAT MEDICAL & SHAG LIVING SITE

APARTMENTS & TOWNHOMES 

(TOWNHOME COMPS SELL FOR 1.3MILLION)

Thank you so much, I appreciate that. Yes, there is not land in my area that is similar with respect to the entitlements and restrictions. 

Do you believe that it is better to start off market or list?

I need advice. I own a parcel of mixed use land that my broker pulled comps on in preparation to sell. I have pre-app approval already. I have done about $500K (verifiable) work to get the land buildable. (The property was previously landlocked, so I filed with DOT and gained access off the major state route, had the wetlands redetermined as well worked with an adjoining property owner for a boundary line adjustment for city mandated storm water drainage. It has been a long 4 years.)

Do I add that 500K to the comped price as it adds significant value to the property or not? 

Should I have my broker aggressively shop the land off market at a higher price for about a month, and if that doesn't generate quality results, put it on market at a slightly lower price knowing I will more than likely have multiple bids? The property is in a higher demand area and is in prime location. Has anyone done both and can provide me with pros and cons?

I can't decide what to do. Thank you!

What area are you looking to invest? At what stage are you looking to invest in the development, ie raw land vs pre-app approved, partially built? What is you target price point and are you looking more into commercial, mixed use, multi family?

Good afternoon, development is expensive, so it will definitely eat into any profit you would be making off rent, if you chose to go that route. I have a mixed use property I have been developing for over 3 years. I have spent well over 500K in soft costs and have the most wonderful, competent AND cost effective architect and engineers that anyone could ever want. They are pretty rare in this aspect and invaluable. 

My GC is great, and even though its $200 sq ft warm shell commercial and $250sq ft residential I have to obtain a loan with an additional 20% contingency for volatility in the market. It's so expensive and definitely cuts into any profits in the short term. It is a full time job to develop and to keep your GC on a timeline if they don't have any financial skin in the game. 

If you bring in a corporate tenant they sometimes have clauses in their lease agreements that dictate who would be allowed to lease in the same building. 

As far as a long term investment goes, once a site has a gas station on it, it is hard to develop anything else on that land without a major investment in mitigating the site. Dependence on fuel will be less as we convert to electric cars. Convenience portion would be great though. Lot's to think about! I wish you so much luck.

I have a $20million mixed use pre-app approved property in Washington in great frontage at an intersection where two major state routes intersect. The location is becoming a hot bed for the tech industry for Microsoft and Amazon implants, Valve etc. 

Where do you find partners to bring in upfront capital? Traditional and non traditional lenders all agree, if I had $3.5-4million capital upfront, they would lend on the total. I have about 3.5million in land equity plus feasibility, so what equity would I provide to a partner bringing in that capital? Long term cash flow is great. Where do you find partners interested in investing without immediate ROI?

My superpower is I own pre-app approved mixed use land in a great location, with great frontage on major state route in Mill Creek, WA, a suburb about 20miles north of Seattle. Great tech area!

I purchased 2.68acres of mixed use land in 2019 in Mill Creek, WA, although I had been dealing with the owners for 3years prior to that. The land is in a VERY sought after location and had a lot of interested developers prior to me. Unfortunately the land was landlocked and had a three-way easement with a Les Schwab and a Lowe's. I spent 500K to get access with the WADOT and feasibility for an owner occupied, $6million development. I hold those permits and have since 2019. 

Covid held up all development and my funder backed out when the cost over doubled coming out of covid. I decided to have the site reassessed and the wetlands redetermined. They were reduced allowing me to maximize the site with 37,000 sq ft of commercial office/retail/restaurant and 12 3-story Townhomes. Pre-App approved.

Comps for townhomes sell for 1.1 - 1.3million and the lease is $38-$41 NNN + TI

Unfortunately, I don't have the experience to develop something this big. (With TI it will be $20million)  I have some interested equity partners, but realistically 70/30, and I would make just about the same money to sell. If I developed with a partner it would be 3-5years before I would see commercial cash flow, but it is very good. With cap rates, I could sell very high even with an equity partner. 

Is it better to just sell without the headache and take the income and 1031 for cash flow right away? 

Thank you, I have gone round and round with this.