All Forum Posts by: Dominic Panicucci

BP Community,

I recently noticed a 1/4 developed property, in the suburbs of Denver, that caught my eye. I drive past this property almost every day.

There are currently 2 separate multi family/townhouse buildings with 13 units filled with tenants. The rest of the property has all the utilities (water, power, gas, phone, sewer) in place, a road and driveways in place, and everything is close to final grade, from the development side.

Viewing data on the county website, there is potential to erect 6 more buildings with 40 more units on this property. There are no current liens on the property, that I have found. Not sure why they stopped building.

I spoke with my developer/general contractor giving me an average cost $50.00 per square foot. The average sqft is 1434 x 40 = 2.868 million. The average price per unit is just over $304,000. Looking at these numbers, means there could be 5 million on the table. Depending on sale price, and a bunch of other factors.

I’m curious on how to write the contract for the current owner of the property. What would be a fair and enticing offer in a perfect world. How to go about the current hoa, building plans, current homes on site, (that are being rented out). The entity that bought the property paid just over 2 million, 10 years ago, for the 3 acre lot. If I need an attorney to write everything up. Or if I should find investors to go in on the deal together, rather than wholesaling.

Thanks for the advice,

D. Panicucci