In the long years of crisis, that slowly immobilized our real estate market in the years after it started shrinking, we were passing the same “For Sale” signs on pieces of land across the street from the ocean on State Rd. A1A, which is known as Atlantic Ave.
We would sigh, say that we need to explore how we could buy something for our own office.
Then, one day, we ran into a private lender and started talking about financing a purchase like this, and then suddenly noticed a "pending" sign on the piece of land we wanted. I called the broker, and he confirmed that we were out of luck, it was under contract, along with a smaller piece on the same block…
It was gone…
Frustrated, I checked every piece of land on Atlantic Ave in Daytona Beach. There was only one small piece of land. Very small corner lot. Of course, it would be enough for the office. The Seller had another piece, one lot to the north, not contiguous. It was 5 times bigger, and the Seller was trying to get rid of it first. Small piece did not bother him as much, but there was no way he would sell the small one before selling the bigger one first.
Price was good. Not as good as the one that we missed, but it was still much less than every other lot on Atlantic on the market today.
I turned to a doctor, my client. He was playing with the idea of investing, but got easily spooked, and so far did not follow my advice. And in every case he saw that he made a mistake, and what I was telling him, was true.
Was it the reason that he listened to me this time? I do not know. But he did, and we negotiated both deals, and the Seller agreed to finance a small piece for us with sizable down as long as the big piece closes first.
We closed October 30, 2012, half a year ago. The idea for my investor was to wait a few years and then sell at a profit. And tis idea sounded fine until 2 days ago.
2 days ago there was the announcement that Hard Rock Hotel and Café is coming to Daytona Beach. And a 10-acre parcel they are taking is half block from our land. I called my client, he was travelling and did not answer, and I left him a message that his land has already dramatically increased in value.
Two days later I read the confirmation that I was right, an article in our local paper quoting a commercial real estate broker, who said that he was inundated by calls asking for vacant land across the Hard Rock Hotel & Café site. Well, the owners of site bought commercial lots across the street, so they are not available, but land that we bought for us, and my client’s land is just steps away, the closest to this block.
6 months and what a difference. It is fascinating how these events affect local markets…
And yes, the price is darn higher now.
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