Ok to you Austin investors:
$20 million for this? Seriously?
What am I missing?
The value is in the 12 acres
Ok I can sort of maybe see that. Still way over priced in my opinion but I missed the acreage altogether before
$38 per square foot. The question is, what can get built there? One group is getting close to getting approvals on 200+ units on 1 acre in the same zip. That kind of density can justify a very high land price. The Johnson Govalle neighborhood association can be difficult with blocking zoning changes, but if you have 20 million to pay for dirt, you probably have a few bucks to influence the neighbors and the city council.
@Jon Klaus seems like a suckers play to even consider paying 20 million for dirt unless you already have those approvals in hand.
This guys has a number of strange deals like this. I toured one once. It was an old folks home turned halfway house. It was also overpriced. I think he hits these prices by using seller financing. However, I think it often ends in foreclosure.
As for this specific one. It is overpriced but 1M an acre would not be bad for high intensity. It is currently zoned CS-MU which allows high density mixed use. So, you would not have to do any zoning work.
Youre on crack. You're beaming up to scotty
Originally posted by @Jon Klaus :
$38 per square foot. The question is, what can get built there? One group is getting close to getting approvals on 200+ units on 1 acre in the same zip. That kind of density can justify a very high land price.
Yeah, but as a buyer, that would be my profit, not the seller. If I've got to take the risk of getting planning approval for what is probably a change of zoning (as a guess), then I'm reaping the rewards, not the seller, who has zero skin in the game.
I'm not trying to justify the price, but I am saying downtown Austin and nearby have areas that absolutely justify $38 per square foot, where the developer can make a substantial profit. Maybe Tillery St. Is not there today, but could be very soon. Certainly 6th, 7th, (just east of I-35) and other streets in the zip are there and beyond.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing