Hello BP, This question isn't exactly about investing, but it could be relevant for someone looking to develop or flip commercial properties. My brokerage is listing a vacant commercial lot on a busy highway in a rapidly growing area about a half mile from a brand new Walmart. This lot is 1 acre and is adjacent to the corner lot, also 1 acre, occupied by a dilapidated gas station that could possibly be torn down and developed. Two new Mapco's occupy two of the other corners. The lot is narrow and deep so the possible uses are limited for something such as fast food or a single tenant office, however together with the adjacent corner lot it would be perfect for a pharmacy or small retail development.
Does anyone have suggestions on how to go about marketing this property? What kind of business/investor should I be targeting for such a property: franchise owners, businesses, developers, etc., and how would I go about contacting such individuals? Do pharmacies such as CVS and Walgreens develop their own building, or would they rather do a ground lease with an investor developing the building?
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@Hugh Hartwig first understand the zoning and what you can build on the lot. Secondly without a development approval you have nothing... it's just a vacant lot that you might or might not be able to build something on so it's going to be hard to pitch this as a development site without any type of plans from an architect. See if the seller is willing to spend the money on getting some renders for a commercial development on the one lot and then another version that includes the gas station. Then you have something,,, sort of. Developers aren't very creative (they mostly care about $$) which is why they hire architects to create their idea so they can visualize it. If you have renders then you can pitch it as a development site. Just be cautious of the gas station and trying to pitch that with your site because there will be significant remediation costs involved to be able to build on it.
In terms of contacting these buyers. The rule is 2 either side and 1 across the road. You need to start to ring ring for the bling bling. Start by calling the neighboring owners (2 either side) and the ones across the street (1 across the road). Then work your way out from there. Yes also a good idea to call all the local business owners in the city and then work your way out. It can be hard to find the land owner names but there a are a lot of posts on BP that could be helpful in that regard.
The CVS's and Walgreens prefer not to develop there own sites but will if they have to. That's because they don't want to take on the construction risk and initial capital outlay. If they do then they sell and leaseback.
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