Hello BP. I have the opportunity to purchase a vacant lot in New Haven CT. The property in located in a "C" area and is zoned for a 3 family dwelling. I have 2 questions.
1) Are there any developers building new construction multi-families in New Haven?
2) If so, how much would they pay for a lot like this?
Any insight would be greatly appreciated!
I live and operate in New Haven but in 2 different "A" Areas, so I will try to help as much as I can.
1) Yes, to some degree. The majority of ground-up new construction are larger apartment buildings in expensive areas. In a "C" area, it is more often a gut-to-frame of an existing structure, maybe with an addition. (This is being done in A/B areas too, sometimes for condo conversions).
2) Would need more information on the exact location and size. Honestly, if it's truly a C area, the answer is "not much." Unless it's very close to a better area that one could speculate may improve in the near future, but even then the empty lots sell slow. Beat-up existing structures actually sell quite quickly in C areas because they cash flow well after renovation, but I think that people look at empty lots as "too much effort, could just fix up an existing house" in those neighborhoods. If it is a narrow lot, you are also probably dealing with zoning variances - approval for yard setbacks, etc - even if the area itself is zoned for 3-family.
New Haven is very block-by-block, especially on the outskirts of the A/B areas and in transitioning areas. Regardless of your goals, I would invest significant time in learning the ins-and-outs. I love living and investing here and hope to continue, but it took me years to learn this place.
Fair Haven Heights area is up and coming, a hidden gem by the Quinnipiac River. I own a condo there (lived in New Haven for 4 years) and now use the condo as a rental after I relocated to Southern California.
Totally depends on the area. Many areas are not worth building and end up as parking lots.
Really interested in this thread. New to RE investing but am focusing my small family co. on New Haven, having lived there for six years and looking to come back full time in RE investing soon...would love to seize this opportunities and network with other folks doing deals in the area!
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