Forums **Ask A Question** Re-Zoning and Assignments

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  • #21846

    Post count: 1

    Hi guys – Curious to know if you have experience with re-zoning?

    I have a motivated seller with 10-acres of farm land in a very wealthy/expensive section of New Jersey. The property is currently 9-acres of workable land with 1-acre reserved for his residence, which is valued at $1.2m+. He is asking $2.3m/$2.4m for the entire thing.

    My thought is that the 9 acres can be sub-divided into 18 lots, each with 5 beds/3 baths and sell to end buyers at not less than $500k – $9m in total. Or, it can be turned into condos/apartments. It will require re-zoning, sub-dividing, running utilities, and the build-up.

    I have 0 experience with this type of thing, and was wondering if you might be able to assist?

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  • Kevin Farrell
    Post count: 1364

    John – Sounds very interesting. My short answer is do your homework so that you are confident of the value. Then buy it on an Option with 90 days to close or at least a signed Purchase Agreement with an assignment clause. I would try to sell the deal to a developer who has experience in that location. For example I might try to get a quick $50K assignment fee on this deal and let the experienced developers do the major work.

    Good luck and let us know how this goes.


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