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.
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