When assembling residential land to sell to a commercial market are there any pitfalls?

I am assembling land in a residential area that falls into the city's plan for commercial redevelopment? I will market it this way. Other than keeping the property owners together in unison, is there anything else that I should be aware of?
In Selling Property - Asked by Gregory H. - Sep 24, 2009
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Answer(s)

joan m.
Appraiser
Boston, MA

Depending on where you live, it could impact your property taxes. Towns with two tax rates (commercial and residential) would rather tax it Commercial. The rate is higher.
A large commercial parcel would most likely have a higher value than the smaller residential parcels from which it came.

Sep 28, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

Are you a broker Gregory?
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-
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)225-9894
gregory.garver@gmail.com

Oct 23, 2009
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Louis W.
Broker/Agent
Needham, MA

Greg,
Many times when the city has a master plan it takes property by eminent domain. I guess the first question is what is the zoning of the land presently and if the city has plans to rezone it.
Assembling it how. Unless you have written agreements or options to acquire it you have nothing.
I would be very careful how you market it as you don't want to be sued for misrepresentation

Nov 1, 2009
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Chris S.
Broker/Agent
Coeur D'alene, ID

99% chance you are substantially overpaying for the dirt. You'd be surprised the deals available out there for land that is already entitled for a shopping center.
Let's take an example ... I run around an buy up tear down homes for as cheap as possible, let's say $50,000 each. Each one is sitting on a 10,000 SqFt lot. By the time I get the land trully assembled, the homes removed, environmental, engineering, etc. I am into the land for let's say $7/SqFt ... guess what that old grocery store down the street just went out and the 20,000 SqFt building is now owned by the bank. Bank wants $600,000 for the building and the two acres it sits on. That's $7/SqFt.

Jan 22, 2010
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