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GOOD · 24% MARGIN $1M–$5M project
#1 · 0 Long Street, Fuquay-Varina, NC 27526
11.12 acres · MLS 10050563 · Fuquay-Varina 401 corridor between Gold Leaf Crossing & WakeMed
List price$1,999,000 (681 days on market — deeply motivated seller)
Acreage11.12 acres (484,387 SF)
MLS10050563
CountyWake
ZoningR/A + HCO (Highway Commercial Overlay)
Future Land UseCommercial/Office/Retail — per Town of Fuquay-Varina land use plan
UtilitiesTown of FV sewer pump station ADJACENT; electricity, phone, cable available; NO current water or sewer connection
Adjacent usesGold Leaf Crossing (Target-anchored center) + WakeMed Medical Park immediately flanking parcel
StrategyEntitlement: complete commercial rezoning per FLU designation; sell entitled 11.12-acre commercial parcel to a medical, retail, or mixed-use developer
ModeledCommercial land sale at $6.71/SF ($291,603/acre avg FV commercial listings); purchase at asking $1,999,000; 12-month entitlement timeline; 50% bridge financing at 10% APR
Out-of-pocket cash$1,234,423 (50% equity $999,500 + land closing $39,980 + entitlement costs $80,000 + loan closing $14,993 + carry $99,950)
Financed$999,500 bridge loan (~50% of land price)
Max offer (20%)
$2,127,053
Pro Forma
| Line | Amount |
|---|
| Gross revenue — entitled commercial land ($6.71/SF × 484,387 SF) | $3,250,000 |
| Land acquisition + closing (~2%) | ($2,038,980) |
| Construction — NONE (entitlement/paper-win, no building) | $0 |
| Home On builder margin — N/A (no construction scope) | $0 |
| Entitlement costs — rezoning app, planning consultant, survey, attorney, county fees (AT COST) | ($80,000) |
| Contingency on entitlement — N/A | $0 |
| Bridge loan closing (1.5% × $999,500) + carry (10% APR × $999,500 × 12 months) | ($114,943) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($227,500) |
| NET PROFIT TO INVESTOR (at asking price, $3.25M commercial value) | ~$789K · 24.3% margin · 63.9% cash-on-cash |
Commercial land value support: Fuquay-Varina commercial land listings average $291,603/acre (LandSearch/LandWatch Sep 2026 aggregated data); 11.12 acres × $291,603 = $3,242,578 bulk commercial value. Conservative model uses $3.25M (essentially at avg). Commercial outparcels on 401 corridor: $850K–$1.9M per ACRE for small retail pads — suggests front outparcels could trade much higher if parcel is subdivided by a commercial developer. MAO $2,127,053 for 20% margin at $3.25M commercial — ABOVE current asking price of $1,999,000, meaning this deal clears at asking price if commercial comps hold. Conservative floor ($3.0M, MAO = $1,959,398): only $40K below ask — 681 DOM makes this easily achievable.
Diligence Gates
GO: Town of FV Future Land Use Plan already designates parcel Commercial/Office/Retail — rezoning aligns with adopted plan (strong approval signal). Town sewer pump station physically adjacent to parcel — sewer infrastructure exists. Gold Leaf Crossing (Target-anchored) + WakeMed Medical Park immediately flanking — proven commercial demand. 681 days on market = seller highly motivated; MAO is essentially at asking price.
VERIFY: Pull actual CLOSED commercial land $/SF transactions on the 401 corridor from a commercial broker before offer (listing prices used; closed-sale comps may differ). Confirm Town sewer pump station has available capacity and determine tap-in/force-main extension cost with Town Utilities Dept. Review Town of FV UDO for HCO overlay permitted uses and rezoning procedure/timeline (target 6–12 months). Wake County GIS/iMAPS: confirm no wetlands, no FEMA AE floodplain encroachment on the developable area. Title search: confirm no deed restrictions that limit commercial use.
STOP: If a prior rezoning application has been denied or is currently under active protest by adjacent neighborhoods. If sewer pump station is at or near capacity and Town requires a costly force main expansion as a condition. If FEMA/wetland mapping reveals more than 15% of the site is undevelopable due to stream buffers or floodplain.
Verdict
681 days on market on a parcel the Town of Fuquay-Varina has already earmarked for commercial use is a classic paper-win setup: the seller is priced for R/A residential but the approved future land use is commercial. The math clears at asking price ($1,999,000) if commercial land comps support $3.25M — that number ($6.71/SF) is below the $291,603/acre average commercial listing price in Fuquay-Varina, so it is a reasonable conservative target. Net to investor at asking: +$789K (24.3% margin, 63.9% CoC). Conservative floor ($3.0M commercial, same purchase price): +$556K (18.5% margin — just under 20%; negotiate $40K off asking to reach exactly 20%). Primary action: have a commercial broker confirm actual closed commercial $/SF on the 401 corridor and get the Town Utilities Dept to confirm sewer pump station capacity. Both checks can be completed in under a week. If both confirm, submit an offer at $1,700,000–$1,960,000.