Download PDF
← Back to overview
MARGINAL · 20% MARGIN $1M–$5M project
#2 · 2809 US-64, Apex, NC 27523
8 acres · MLS 10133793 · Apex Hwy 64/I-540 growth node; public sewer confirmed; price reduced
List price$2,799,000 (PRICE REDUCED; 312 days on market)
Acreage8 acres (348,480 SF); rolling terrain, pond on site
MLS10133793
CountyWake
ZoningRR (Residential Rural, Wake County)
UtilitiesPUBLIC SEWER confirmed; public water available; natural gas, electricity, cable available
Location300 LF road frontage on US-64; near I-540 exit; adjacent to Lennar Ennis Branch development; near Beaver Creek Commons, WakeMed Cary, Costco
StrategyEntitlement: commercial rezoning of RR land in Apex growth corridor; sell entitled 8-acre commercial parcel to developer. Residential subdivision is modeled but does NOT pencil at current asking price.
ModeledCommercial land sale at $12/SF (unverified — must confirm with Apex-area commercial broker); negotiated purchase at $2,693,907 (MAO; 3.8% below ask); 12-month entitlement; 50% bridge at 10% APR
Out-of-pocket cash$1,705,785 (50% equity $1,346,954 + land closing $53,878 + entitlement $150,000 + loan closing $20,204 + carry $134,749)
Financed$1,346,954 bridge loan (~50% of MAO land price)
Residential checkDOES NOT PENCIL at asking: 12 lots × $1M ARV each ($325/SF × 3,000 SF) → Investor net = -$647K at $2.799M land cost. MAO for residential 20% margin ≈ $1.2–1.4M — would need ~50% price cut.
Max offer (20%)
$2,693,907
Pro Forma
| Line | Amount |
|---|
| Gross revenue — entitled commercial land ($12/SF × 8 ac = 348,480 SF) | $4,181,760 |
| Land acquisition + closing (~2%) — at MAO $2,693,907 | ($2,747,785) |
| Construction — NONE (entitlement/paper-win, no building) | $0 |
| Home On builder margin — N/A (no construction scope) | $0 |
| Entitlement costs — commercial rezoning, planning consultant, survey, attorney, county fees (AT COST) | ($150,000) |
| Contingency on entitlement — N/A | $0 |
| Bridge loan closing (1.5% × $1,346,954) + carry (10% APR × $1,346,954 × 12 months) | ($154,900) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($292,723) |
| NET PROFIT TO INVESTOR (at MAO = $2.694M, $12/SF commercial value) | ~$836K · 20.0% margin · 49.0% cash-on-cash |
Commercial land value support: UNVERIFIED — no specific closed $/SF comps confirmed for this corridor. Basis for $12/SF: Apex is the Triangle's strongest residential market ($276–$364/SF new construction); parcel is adjacent to the 540/Hwy 64 interchange (major commercial node) and Beaver Creek Commons (major retail center with Target, Costco, WakeMed Cary). Commercial land near major 540 interchanges in the Triangle has traded at $10–20+/SF in prior cycles. USE THIS AS A DIRECTIONAL NUMBER ONLY. MAO = $2,693,907 at $12/SF commercial (3.8% below current ask). At $13/SF commercial (possible near Beaver Creek/540 node): MAO = $2,930,835 — above current ask, meaning deal clears at asking price with no negotiation needed. MUST verify with Apex commercial real estate comps before offer.
Diligence Gates
GO: Public sewer confirmed — extremely rare and valuable for 8-acre unzoned land in Apex; adjacent Lennar Ennis Branch subdivision establishes market demand; near I-540 exit and Beaver Creek Commons (proven commercial node); price ALREADY REDUCED with 312 DOM; MAO ($2.694M) is only 3.8% below asking — seller should accept.
VERIFY: Pull actual closed commercial land $/SF comps near Beaver Creek/540 in Apex from a commercial broker — $12/SF is modeling assumption only. Wake County GIS: confirm RR zoning path to commercial (Wake County CTP/future land use designation for this parcel). Apex annexation status and ETJ: if in Wake County unincorporated, confirm whether commercial rezoning runs through the county or requires Town of Apex annexation. Pond/wetlands: delineate actual developable area; pond may reduce net buildable SF. Confirm public sewer stub location and distance to site boundary with Wake County Utilities.
STOP: If Wake County comprehensive plan designates parcel as agricultural preserve or open space (limits commercial rezoning path). If pond/wetlands reduce net developable area below 5 acres. If commercial rezoning requires Town of Apex annexation and Apex has a current moratorium on annexations in this corridor.
Verdict
The key asset here is the confirmed public sewer on an 8-acre parcel in Apex's fastest-growing corridor — that infrastructure alone is worth significant premium. Residential subdivision math fails at asking ($2.799M needs to drop ~50% to pencil at 20%), but commercial entitlement is the right play. At $12/SF commercial (directional, unverified), negotiate to $2,694K (3.8% below ask) for 20% margin (+$836K profit, 49% CoC). At $13/SF commercial (plausible near Beaver Creek/540 interchange): deal clears AT asking price with no negotiation, yielding 23.1% margin (+$1.05M profit). Grade rises to GOOD if commercial comps confirm $12+/SF. Primary action: get a Apex-area commercial broker to pull closed commercial land transactions within 1 mile of the Beaver Creek/US-64/540 node. This is a one-day data pull that either confirms or kills the deal. If comps support $12+/SF, submit offer promptly — 312 DOM seller is ready to move.