#2 · 0 Thomas Mill Road, Holly Springs, NC 27540

10 acres with public water + sewer, Thomas Mill Rd, Holly Springs — MLS 10146299 (near Holly Springs Business Park)

List price$2,900,000 (reduced from $3,100,000; 220 days on market)

Acreage10 acres (298 ft frontage on Thomas Mill Rd)

MLS10146299 (Sold by Summer / Keller Williams Elite Realty)

ZoningRR (Rural Residential, Wake County) — rezoning required for commercial or high-density use

UtilitiesPUBLIC water AND public sewer confirmed by listing — extremely rare for RR-zoned land in Wake County; the key differentiator

StrategyEntitlement: negotiate to ≤MAO ($2,389,035 at $400K/ac), rezone commercial near Holly Springs Business Park, resell to office/industrial/mixed-use developer

Out-of-pocket cash$1,547,500 (equity + closings + entitlement + carry at modeled $2,500,000 acquisition)

Financed$1,500,000 land loan (60% LTV at $2,500,000 acquisition)

ModeledAcquisition $2,500,000 (14% below ask); commercial resale $400K/ac × 10 ac = $4,000,000 — MARGINAL; $450K/ac = $4.5M = GOOD (25% margin)

Project cost

$3.05M

Gross revenue

$4,000,000

Net profit

+$672,500

Margin

16.8%

Max offer (20%)

$2,389,035

Pro Forma

Line	Amount
Gross revenue — commercial land resale ($400K/ac × 10 ac; near Holly Springs Business Park — verify with county comps)	$4,000,000
Land acquisition + closing (~2%)	($2,550,000)
Construction — no build; entitlement strategy (residential FAILS at current $265/SF comps at any land cost)	$0
Home On builder margin — N/A	$0
Site development / entitlement costs — survey, planning, legal, rezoning fees, engineering (AT COST)	($175,000)
Contingency (10% of construction, AT COST — typically returned if unused) — N/A	$0
Land loan closing + carry (60% LTV $1.5M loan; 1.5% = $22,500 + 10% APR × 24 months = $300,000)	($322,500)
Selling costs (~7%) — paid at sale closing, not out-of-pocket	($280,000)
NET PROFIT TO INVESTOR	~$672,500 · 16.8% margin · 43% cash-on-cash (24 months) at $400K/ac — steps to GOOD: achieve $450K/ac commercial → $1,137,500 · 25.3% margin

Holly Springs new construction sold comps: 749 W Holly Springs Rd $789K/3,008 SF = $262/SF; 743 W Holly Springs Rd $785K/2,944 SF = $267/SF (Triangle MLS late 2025–2026). Residential math: even with zero land cost, construction + site dev + carry on a 30-lot project at $265/SF totals >$17.6M against $22.2M net-of-selling revenue — <20% margin is impossible. Residential = PASS at this price. Commercial comps: FV commercial avg $291K/ac; HS business-park land should command a premium — pull Wake County recorder comps before committing. MAO $2,389,035 at $400K/ac; $2,040,812 MAO at $350K/ac.

Diligence Gates

GO: Confirmed public water + public sewer (rare for RR land); 220 DOM + $200K price cut signal further negotiation room; proximity to Holly Springs Business Park creates commercial demand context. VERIFY: Pre-app meeting with Holly Springs planning (town is annexation-active — confirm ETJ status and rezoning support); pull Wake County recorder for Thomas Mill Rd commercial land sales; deed restrictions on RR parcel; public sewer line capacity and tap fee; any wetlands/floodplain on gently rolling 10 acres. STOP: Planning staff signals commercial rezoning not supported for this corridor; county comps put commercial land below $350K/ac (deal not viable at $2.9M even at MAO); deed restrictions prohibit commercial use.

Verdict

The public sewer is the gem — it separates this parcel from every other RR tract in Wake County. But $2.9M cannot be justified on a residential basis at $265/SF comps (math fails regardless of land cost). The commercial entitlement play is MARGINAL at $400K/ac and tips to GOOD at $450K/ac. Negotiate to $2.39M or below before committing. If Holly Springs planning staff support commercial rezoning in this corridor, this becomes a compelling buy; if not, PASS. Recommended action: $2.39M contingent offer, 60-day DD, first 15 days on planning pre-app + county comp pull only.

Deal Scout · 2026-09-21 Home On LLC · NC GC L-103184Confidential — Home On LLC