Trampled on the path of progress?
I'm looking at a small MFR deal: 14 units, all 1/1. C+ property in a C+ area. However, there is a development (not re-development) plan for the immediate neighborhood that it lies in, in which they are proposing zoning plans for each of the parcels in the area. Mind you, there's not a whole lot there now, and hence it doesn't appear to be a RE-development plan.
From what I can tell, they want to turn this mostly under-utilized area into a bedroom community: there is a mixture of very-low to very-high density housing as well as a few mixed-use parcels and open-preserves. TBH, I'm not exactly sure what they mean by "mixed-use." It could be trendy hipster loft over a cafe, or it could be a taco-bell sharing a parking lot with a dentist.
I don't quite know what to think about this deal. On the one hand, it puts the prospective property "on the map" as it where. On the other hand, there's going to be a bunch of presumably new housing in the area. From what I hear is that in general most developers are preferring to build A-class properties just because land is tight and expenses are high. So I might find myself owning the ugly duckling C+ property with 1/1's surrounded by A's with 3/2's. Or I might be filing a niche for hipster millennials in the path of progress.
Anyone deal with this type of situation before and/or have some advice as to how I should think about the problem or how I should further investigate?
Thanks!
James