I have an opportunity to buy property zoned light industrial. The last sale occurred in 2004 for $310k. The current option to buy is 35k (for delinquent taxes).
Issues-there is a petroleum gasoline easement running through the property. They will allow a road to be built over the line, but that’s it. There are no sewer lines to the property, and it is going to be somewhat difficult to get water to the property.
The property is located next to railroad tracks and across the tracks from a large industrial facility.
My thoughts on the property: rezone for manufactured housing park, or turn into an equipment storage yard. Any thoughts or comments would be appreciated on potential uses.
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Bob Blackburn - Well.....you say getting water to the area is going to be difficult. How difficult? You can't expect to have housing if you can't get water/sewer to it. It also doesn't sound the most attractive place for someone to want to settle down and live, given it's an industrial park (let alone if it's even possible to get the zoning variance)....I'd probably ditch that idea altogether.
Equipment storage sounds more feasible than anything, but you'll need to figure out if there's a demand for such a thing, and run a model on what you expect this to cost vs the revenue it could bring it. At the end of the day, there's a reason no ones jumping on this thing. You may want to spend a lot of time figuring out why that is.
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes
6y
You didn't post the size of the property nor where it resides within the light industrial zone and surrounding zones. That context would be helpful in understanding the prospects of rezoning.
Generally, communities won't rezone to residential a smallish property in the middle of an industrial park, surrounded by similar uses. The uses are often seen as not compatible. It may be easier if the property is on the edge of the industrial zone and residential is right across the street, for example.
Try talking with the local zoning official to get the government's opinion on how receptive they would be to the change. The town may be interested in more mixed use zoning and may have some helpful advice.
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Bob Blackburn - Well.....you say getting water to the area is going to be difficult. How difficult? You can't expect to have housing if you can't get water/sewer to it. It also doesn't sound the most attractive place for someone to want to settle down and live, given it's an industrial park (let alone if it's even possible to get the zoning variance)....I'd probably ditch that idea altogether.
Equipment storage sounds more feasible than anything, but you'll need to figure out if there's a demand for such a thing, and run a model on what you expect this to cost vs the revenue it could bring it. At the end of the day, there's a reason no ones jumping on this thing. You may want to spend a lot of time figuring out why that is.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
6y
We picked one up some years ago & because it was zoned light industrial conv. financing was an issue for several who approached us to buy it. We held it contract for deed & collected a very nice 25% return for 10 years. We then evicted them & sold it for cash. Over the years we fought the 2x tax assessment increases each year because the shop next door put in a 12ft tall propane tank & insurance was tough to get. Then 3 years ago they converted that shop to a Pet Crematorium & that guy is making good coin!!!
Thank you all for the helpful insight! I’ve spoken with the city zoning dept and they would like to get this land put to use, but have not made any promises or suggestions regarding converting to residential. Definitely will plan on running this to ground.
The property is 18 acres-surrounded completely by residential property, but mostly on septic. We would have to go several blocks away to get city sewer. The area across the train tracks from the 18 acres is a large industrial track.
The water main is a 2 inch pipe which I’ve been told limits the amount of homes you could put there without again running lines from several streets away. Does that sound right?Might need to walk away from this deal but trying to get creative given the low price.
Again, thank you all for taking the time to respond!
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
6y
Here's another interesting glitch. A local Environmental company bought a similar property after they completed the cleanup. They then got approval to develop the land & went ahead surveying it & dividing it into lots, complete with ancillary roads & utilities. The city then re-assessed the entire subdivision applying assessments to each viable lot & the property taxes went through the roof & he still has a lot of empty lots for sale.
Beware of tax foreclosure sales. Given proximity to the railyard, u need to do environmental due diligence. Was cleanup done for commercial or residential standard? If former, u may have additional cleanup to be able to develop ot for residential.