Skip to content
Commercial Real Estate Investing

User Stats

55
Posts
24
Votes
Wayne Bolen
  • Leander, TX
24
Votes |
55
Posts

What to do with an extra 0.4 acre lot?

Wayne Bolen
  • Leander, TX
Posted Jun 27 2022, 12:54

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.

User Stats

5,049
Posts
2,075
Votes
Ronald Rohde
Pro Member
#3 Commercial Real Estate Investing Contributor
  • Attorney
  • Dallas, TX
2,075
Votes |
5,049
Posts
Ronald Rohde
Pro Member
#3 Commercial Real Estate Investing Contributor
  • Attorney
  • Dallas, TX
Replied Jun 28 2022, 14:35

Fencing is pretty much a minimum value add, open lot parking is a possibility in rural areas.

Whats the zoning?

User Stats

749
Posts
374
Votes
Zach Quick
  • Investor
  • Bentonville, AR
374
Votes |
749
Posts
Zach Quick
  • Investor
  • Bentonville, AR
Replied Jun 29 2022, 07:33
Quote from @Wayne Bolen:

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.

If it's a separate gate/fence and you're planning on selling next summer I honestly would leave it and sell as 'upside'
Ignite Funding  logo
Ignite Funding
|
Sponsored
Maximize Your Returns with Trust Deeds Earn 10%-12% annually on collateralized real estate investments. No fees to invest.

User Stats

5,049
Posts
2,075
Votes
Ronald Rohde
Pro Member
#3 Commercial Real Estate Investing Contributor
  • Attorney
  • Dallas, TX
2,075
Votes |
5,049
Posts
Ronald Rohde
Pro Member
#3 Commercial Real Estate Investing Contributor
  • Attorney
  • Dallas, TX
Replied Jun 30 2022, 09:21
Quote from @Zach Quick:
Quote from @Wayne Bolen:

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.

If it's a separate gate/fence and you're planning on selling next summer I honestly would leave it and sell as 'upside'

 "meat on the bone"

User Stats

55
Posts
24
Votes
Wayne Bolen
  • Leander, TX
24
Votes |
55
Posts
Wayne Bolen
  • Leander, TX
Replied Jun 30 2022, 14:48

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.

User Stats

18
Posts
4
Votes
James Siller
  • Realtor
  • Houston, TX
4
Votes |
18
Posts
James Siller
  • Realtor
  • Houston, TX
Replied Jul 1 2022, 07:52

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.