Proposals float across my desk in several ways.
This one is from the south:
20 acre site.
Purchase price is roughly 1.4 million, cost to develop individual 1-2 acre lots roughly 900k.
This development would create 4-6 retail corner or near corner highway lots for restaurants, retail strip center and Gas stations and would sell for approximately 450-5500k each. This development would also be an alternate entrance from a main highway into a large Industrial business park that is almost completed.
Summary : purchase and development- 2.3 million
Interest Carry 2 years .36 million
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2.66 million
Sales on 4-6 retail lots 5 lots x 500k each 2.5 million
Sales on 10-12 interior lots 150-175k each x 10 1.5
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Gross 4 million
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Potential net Profit --------------------------------------- 1.3 million
without Construction buildouts.
I'm likely to send him the CCIM worksheet so that we can nail down a few more numbers before I start to gather documentation for lenders. Am I missing something obvious?
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