A large parcel of industrial property sold in the first quarter of 2010 despite the uncertainty around the ownership of the property. The land area is approximately 59 acres, and the property sold for $12.5MM. The property had been in foreclosure and reportedly, the note had been sold at a small discount off the face value. An investor came in just prior to the confirmation hearing and paid the price to pay off the mortgage. The property is unimproved, and was recently rezoned for industrial use. Most likely, plans include one to ten acre industrial lots with common areas and streets being put in by the new developer.
There was a lot of interest in this property, and we can see why, with a price tag of $4.86 per square foot for the raw, unimproved industrial land, there seems to be a profit for someone. At this price, it should allow for a developer to hold the property for a couple of years, make improvements, and sell the individual lots at a retail price as the market strengthens.