I’m working with an investment group on a 9+ acre redevelopment opportunity in Indianapolis, and I’m looking for candid feedback from experienced developers, multifamily investors, and land investors.

This isn’t really a “here’s a deal, who wants it?” post. I’m trying to understand why the opportunity isn’t moving and what experienced developers may be seeing that I’m not.

The site consists of approximately 9.2 acres across multiple parcels.

The property previously contained several structures. One parcel has already been demolished and cleared, while the remaining structures would need to be demolished as part of a redevelopment.

Multifamily and affordable-housing concepts have previously been explored for the site. However, a new development would likely require rezoning and/or increased density, meaning there is still meaningful entitlement risk.

The current pricing expectations are approximately:

$3M cash

or

$3.5M–$4.5M with seller financing, depending on the structure and terms.

One of the biggest challenges I see is incomplete due diligence.

There is existing information on the property, but several items a developer would normally want to fully underwrite a redevelopment opportunity either still need to be completed, updated, confirmed, or priced.

That means a developer isn’t simply underwriting the land acquisition. They’re potentially taking on:

• Demolition costs for the remaining structures
• Environmental/site-condition risk
• Utility and infrastructure verification
• Rezoning and entitlement risk
• Density uncertainty
• Development/construction costs
• Financing and carrying costs during the entitlement period
• Uncertainty around the ultimate number of buildable units

We’ve spoken with developers and other groups about the opportunity, but haven’t been able to get it across the finish line.

Instead of continuing to market the property the same way, I’m trying to understand where the deal actually breaks.

For developers who have worked on projects like this, I’d really appreciate your thoughts:

1. What would immediately concern you if this deal came across your desk?

2. Does a $3M cash acquisition price make sense given the amount of pre-development risk still remaining? If not, how would you determine an appropriate land basis?

3. How significantly would the incomplete due diligence affect your valuation? What reports, studies, bids or confirmations would you require before getting serious?

4. Would you put a property like this under contract and complete the due diligence yourself, or would you expect ownership to complete certain items first?

5. With the remaining structures requiring demolition, would you require firm demolition estimates before establishing your land value?

6. How would you handle the entitlement risk? Would you acquire before rezoning, use an entitlement contingency, option the property, or wait until zoning/density was resolved?

7. Could seller financing make the project more attractive even at a $3.5M–$4.5M purchase price? If so, what type of down payment, interest rate, payment structure and term would make that worthwhile?

8. For a multifamily redevelopment, would you primarily value the property based on acreage, comparable land sales, or price per buildable unit?

9. What would ownership need to accomplish before you would seriously consider the opportunity environmental work, demolition bids, utility confirmation, entitlements, density approval, a lower basis, better financing terms, etc.?

And the biggest question:

What am I missing?

If several experienced developers have looked at an opportunity and it still isn’t moving, there’s a reason. I’m trying to determine whether the primary problem is price, due diligence, demolition/site conditions, entitlements, achievable density, financing, transaction structure or a combination of them.

I’m open to constructive criticism. My objective is to better understand how experienced developers would evaluate the opportunity and what would need to change to make it executable.

If anyone here has direct experience with Indianapolis development, multifamily, affordable housing, redevelopment, or land entitlement, I’d especially appreciate your perspective.