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extirpated
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development land pricing question

Sun Jun 01, 2014 6:01 pm

If there are any developers/investors out there... my spouse and I own land in the middle of Halifax, a 10 min drive from downtown, in an area where condo development seems to just have started to take off, though vacant land is scarce. we have 2 side by side rental houses on a total 14,000 sqft, (each lot is about 7,000 sqft) and our neighbour has a home on 9,900 sqft.

Our zoning currently allows for 4 units per lot with a 35' height restriction (so 12 units total on the 3 lots). However, a 6 storey, 41 apartment + 5 commercial unit building is to go up directly across the street from us on a 14,000 sqft lot. A councilor we spoke to at a public info meeting for the building across the street seems to agree that given our combined lot size, and that a condo project on our land would make sense. Our 3 houses are bounded by an 18 unit condo complex on one side and an old 8 unit apartment building on the other.

We're talking about selling the 3 lots together with our neighbour as an investor could rent the 3 houses out while the planning/rezoning process occurs. The 3 houses are each 50 - 60 years old and nothing special but in a good location so easy to rent. Our three lots total almost 24,000 sqft, We're throwing around $100/sqft as an asking price for our land with houses. does this sound sensible, crazy high or too low? Is there some sort of calculator one can use to figure out how land value increases as # of units allowed increases?

I grew up in Richmond and lived in Vancouver so I watched the whole market take off there. There are really few comparables around for this sort of thing here right now, and we neither want to give our land away nor to be unreasonable. The investor building the building across the street has already said he'd like to buy our houses but I don't think he'll be expecting our asking price to be so high. In terms of retail value, new condos in a 13 storey building nearby, built by the same developer the investor is using, are retailing around $264/sqft for an 1100 sqft unit. elsewhere in halifax a new development seems to be selling well for $199,000 for a 450 sqft unit ($442/sqft)

by comparison an older 4 bdr 2 bath house just went on the market, sharing lots lines with ours at the back, for $295,000 on 8200sqft (so $32/sqft, but it's only zoned R2 - 2 units - and the owner doesn't know we've been talking about selling as a parcel). If someone bought this along with our 3 lots it could resolve the issue of potential height restrictions and make for a 32,000 sqft lot with frontage on 2 roads. otherwise, going rate for a 2 unit lots with 5,000 sqft seems to be around 200k in our neighbourhood but further away from downtown.

Any suggestions, advice or feedback would be most appreciated thanks! We figure getting the bigger price will be easier if we wait, but at the same time we all have other properties we'd like to buy if we cashed out.
 
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WhipMaster
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Re: development land pricing question

Sun Jun 01, 2014 8:01 pm

The value of the site is worth what, and how much can be built on the site.
So figure out what can be build on it and then find out what the "value per buildable foot" is.
Then you will have an idea of what the gross site is worth.

There used to be a guy named Semven around. He is very sharp and has experience in development sites.
Maybe he can advise you if he is around. :lol:

Good luck, let us know what eventually happens.
Hoo~Cudda~Not~Nod~ed????? :-)
 
jojuchst
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Re: development land pricing question

Mon Jun 02, 2014 9:56 am

by comparison an older 4 bdr 2 bath house just went on the market, sharing lots lines with ours at the back, for $295,000 on 8200sqft (so $32/sqft, but it's only zoned R2 - 2 units - and the owner doesn't know we've been talking about selling as a parcel). If someone bought this along with our 3 lots it could resolve the issue of potential height restrictions and make for a 32,000 sqft lot with frontage on 2 roads. otherwise, going rate for a 2 unit lots with 5,000 sqft seems to be around 200k in our neighbourhood but further away from downtown.
Did you get the $295,000 mixed up with $1,295,000 perhaps??

When you say that "I grew up in Richmond and lived in Vancouver so I watched the whole market take off there" I naturally infer that you're talking about the GVA.
Or are you talking about Halifax city on the east coast versus Halifax street in Burnaby??
 
rofina
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Re: development land pricing question

Mon Jun 02, 2014 6:19 pm

by comparison an older 4 bdr 2 bath house just went on the market, sharing lots lines with ours at the back, for $295,000 on 8200sqft (so $32/sqft, but it's only zoned R2 - 2 units - and the owner doesn't know we've been talking about selling as a parcel). If someone bought this along with our 3 lots it could resolve the issue of potential height restrictions and make for a 32,000 sqft lot with frontage on 2 roads. otherwise, going rate for a 2 unit lots with 5,000 sqft seems to be around 200k in our neighbourhood but further away from downtown.
Did you get the $295,000 mixed up with $1,295,000 perhaps??

When you say that "I grew up in Richmond and lived in Vancouver so I watched the whole market take off there" I naturally infer that you're talking about the GVA.
Or are you talking about Halifax city on the east coast versus Halifax street in Burnaby??
I gather he is in the city of Halifax.
 
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jesse1
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Re: development land pricing question

Tue Jun 03, 2014 4:33 am

Halifax UK or NS?

Asking a BC RE forum for non-BC RE advice is like asking a Canadian for help determining market price at a Mexican resort tourist market.
There is no shame in overpaying
 
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WhipMaster
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Re: development land pricing question

Tue Jun 03, 2014 6:55 am

Jesse, you should put yourself on your "ignore" list. :lol:
Hoo~Cudda~Not~Nod~ed????? :-)
 
HomelessinSD
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Re: development land pricing question

Tue Jun 03, 2014 10:14 am

Halifax UK or NS?

Asking a BC RE forum for non-BC RE advice is like asking a Canadian for help determining market price at a Mexican resort tourist market.
This is true, but at least the post is real estate related and may spark some real discussion.

A couple things stick out right away:

1) Not sure about Halifax, but getting through City Council for the re-zoning could drag out for a long time and cost considerable money: design applications, public hearings, etc.

2) If you were able to build condos, how would you possibly deal with parking? 24,000 sf lot is a small footprint for a condo building. How is the building across the street dealing with parking for 41 apartment units and 5 CRU's on a 14,0000 sf lot? Does the City of Halifax not require onsite parking?
 
InvestorRelations
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Re: development land pricing question

Tue Jun 03, 2014 11:32 am

Halifax UK or NS?

Asking a BC RE forum for non-BC RE advice is like asking a Canadian for help determining market price at a Mexican resort tourist market.
Actually, your average BC homeowner is more apt to know the market for condos in Puerto Vallarta than a lot in Nova Scotia.
 
Near7
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Re: development land pricing question

Tue Jun 03, 2014 2:40 pm

Good strategy, even PEI knows we are crazy about real estates here in BC.
Well done.
 
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Dragonslayer
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Re: development land pricing question

Wed Jun 04, 2014 6:23 pm

I own land in the middle of Halifax, a 10 min drive from downtown, in an area where condo development seems to just have started to take off

Dragonslayer:
The location description is too vague. tell the OP to find out what the local government has for an OCP. He may find he needs a greater assembly than the three properties by the time the Engineering dept. is done with him. As it stands it may be a side by side "Duplex" play, and trading 3 units for 4 isn't worth the trouble.

http://www.halifax.ca/planning/CommunityPlans.php


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SV

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