"I would give a thousand furlongs"

"of sea for an acre of barren ground." Shakespeare
Yes I can quote Shakespeare but only pertaining to Real Estate.

Picture is of the beach access on a piece of land that we have listed on Ocean Beach Blvd.  This piece of property is .71 acre of buildable oceanfront land.  The property is zoned multi-family and currently is approved for 7 units.  The lot has been cleared and ready to build.

The property was puchased by a very successful local developer in 2006.  At the time of puchase there were 2 apartment buildings on the property facing north and south.  The developer demolished the buildings and cleared the lot.  Unfortunately as we all now know this was the worst possible time in the Real Estate market.  The purchase price in 2006 was $2,600,000.  The property is now bank owned and listed at $950,000.

My thoughts are as follows;  Almost all experts agree the Real Estate market is coming back slowly.  If a buyer could get this property for $900,000 and held it for 5 years then I feel there is a strong possibility that the lot would be worth $1,200,000 or a 30% return on your investment, much better than the stock market or bank interest.  There also is a complex about 1/4 mile south of this lot that was developed around 2006.  This complex contain 8 units that are upscale condos on the ocean. The units have been on the market since completion and a few have been sold.  The creative thing the owners did was obtain a variance from the city and converted the building to weekly rentals and are now renting the units out by the week to acquire cash flow until the market catches up with the complex.  Precedent may have been set in order to build weekly rental complex on the bank owned lot which could prove to be a cash cow.

Strong Possibilities

picture of lot.

Thanks
Jim Bagwell