What to do with an extra 0.4 acre lot?
My partners and I recently purchased a small self storage facility outside of OKC. The sale included both the lot with the storage facility, as well as an adjacent 0.4 acres. This was a value add facility (we fixed the gate, added software, got rid of a meth-head, etc. Our goal is to put the facility back on the market next summer and 1031 into something larger. In the meantime we have the adjacent property that we're at a bit of a loss on what to do with. It's not fenced in, and would cost 50k or more to fence in with chain link. We're not in a position to put that much down for something that might simply sit vacant. Hoping the BP community will have some ideas.
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- Dallas, TX
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Fencing is pretty much a minimum value add, open lot parking is a possibility in rural areas.
Whats the zoning?
Quote from @Wayne Bolen:If it's a separate gate/fence and you're planning on selling next summer I honestly would leave it and sell as 'upside'
My partners and I recently purchased a small self storage facility outside of OKC. The sale included both the lot with the storage facility, as well as an adjacent 0.4 acres. This was a value add facility (we fixed the gate, added software, got rid of a meth-head, etc. Our goal is to put the facility back on the market next summer and 1031 into something larger. In the meantime we have the adjacent property that we're at a bit of a loss on what to do with. It's not fenced in, and would cost 50k or more to fence in with chain link. We're not in a position to put that much down for something that might simply sit vacant. Hoping the BP community will have some ideas.
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Quote from @Zach Quick:
Quote from @Wayne Bolen:If it's a separate gate/fence and you're planning on selling next summer I honestly would leave it and sell as 'upside'
My partners and I recently purchased a small self storage facility outside of OKC. The sale included both the lot with the storage facility, as well as an adjacent 0.4 acres. This was a value add facility (we fixed the gate, added software, got rid of a meth-head, etc. Our goal is to put the facility back on the market next summer and 1031 into something larger. In the meantime we have the adjacent property that we're at a bit of a loss on what to do with. It's not fenced in, and would cost 50k or more to fence in with chain link. We're not in a position to put that much down for something that might simply sit vacant. Hoping the BP community will have some ideas.
"meat on the bone"
I think we're going to leave it as is unless something compelling comes along. I actually just made contact with a broker who is looking to expand their footprint in OK, so leaving it alone for the time being may be our best option. Our goal is to simply 1031 this for a larger facility in the next 12 months so this will provide the upside that another investor would be looking for.
What are the road Right of Ways? 0.4 acres is not a lot when you take into account right of ways, easements, and potential drainage (ie detention ponds). If you are located on a state owned road, then make sure you check with them for ROW and entrance requirements. We just backed out of a development deal because seller wouldn't work with us on an entrance off a farm to market road that was not permitted.