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GOOD · 17.1% margin · 78.3% cash-on-cash (base $340/SF); 21.3% · 103% CoC at $360/SF MARGIN $5M–$10M project
#1 · 8400 Henderson Rd, Apex, NC 27539
6.97 acres / 15-lot subdivision planned / Town of Cary utilities / MLS 10170310
List price$2,000,000 (active 9+ months — room to negotiate; MAO $1.64M at $340/SF base)
Acreage6.97 acres
MLS10170310 (Active — updated 05/28/2026, Town of Cary jurisdiction, Apex address 27539)
ZoningResidential — Town of Cary jurisdiction; 15-lot subdivision planned (confirm plat approval status — CRITICAL)
UtilitiesMunicipal water & sewer (Town of Cary); minimal site prep vs. competitors; flat/few trees confirmed
Strategy15 custom homes, 2,500 SF each, builder-grade+ finish; alt: plat + sell 15 lots to builders (~$250k/lot = $3.75M gross)
Comparable salesColby Chase Dr Apex 27539: $344/SF and $357/SF active 2026. Apex-wide median new const $261/SF. Premium corridor supports $340-360/SF.
Out-of-pocket cash$2,789,555 (equity $1,953,187 + land closing $40,000 + loan closing $103,874 + carry $692,494)
Financed$6,924,938 construction loan (~78% of $8,878,125 total project cost)
Modeled15 homes × 2,500 SF × $111/SF builder grade; 20% Home On intro margin; 24-month build/sale cycle
NearVeridea ($2.7B mixed-use, 2 mi), Downtown Apex, Lake Wheeler, Costco, future transit node
FlagConfirm: 15-lot plat approved or conceptual? Verify lot dimensions, impervious limits, Cary tap fees (~$10-15k/lot estimate)
Margin
17.1% margin · 78.3% cash-on-cash (base $340/SF); 21.3% · 103% CoC at $360/SF
Max offer (20%)
$1,640,203
Pro Forma
| Line | Amount |
|---|
| Gross revenue — 15 homes × 2,500 SF × $340/SF (base; $360/SF = $13.5M) | $12,750,000 |
| Land acquisition ($2,000,000) + closing (2%) | ($2,040,000) |
| Construction — builder cost (15 × 2,500 SF × $111 builder grade) | ($4,162,500) |
| Home On builder margin (20% intro rate; standard 30%) | ($1,040,625) |
| Site development per lot × 15 (incl. 20% margin) | ($562,500) |
| Subdivision infrastructure per new lot × 15 (incl. 20% margin) | ($656,250) |
| Contingency (10% of construction cost × 15, AT COST — typically returned if unused) | ($416,250) |
| Construction loan closing + carry (10% APR, 24-month cycle) | ($796,368) |
| Selling costs (~7% × $12.75M) — paid at sale closing, not out-of-pocket | ($892,500) |
| NET PROFIT TO INVESTOR (base $340/SF) | ~$2,183,007 · 17.1% margin · 78.3% cash-on-cash
At $360/SF: ~$2,880,507 · 21.3% margin · 103.3% CoC (GREAT threshold) |
ARV support: Colby Chase Dr, Apex 27539 — $344/SF (3,925 SF/$1,349,000) and $357/SF (3,353 SF/$1,196,500) active 2026 listings in same Apex/Cary custom home corridor. Market avg Apex $261/SF all new const. Premium assumed: $340/SF base, $360/SF upside. MAO $1,640,203 at $340/SF — $360k below ask, negotiate; at $360/SF MAO $2,176,967 exceeds ask — buy at full price if premium ARV confirmed.
Diligence Gates
GO: Municipal sewer/water confirmed; near Veridea catalyst; premium custom comps confirmed at $344-357/SF nearby; 9+ months on market = negotiation leverage.
VERIFY: Plat status (approved vs. conceptual) — CRITICAL; Cary tap fees (~$12,500/lot est.); lot layout, setbacks, impervious % limits; easements/buffers; soil/drainage (flat site, low concern); HOA requirements.
STOP: Subdivision plat not approvable; Cary withholding utility extension; Neuse buffer eating >1 lot; required affordable housing set-aside degrading economics.
Verdict
Strong GOOD at $340/SF, GREAT at $360/SF. The Veridea location and Town of Cary utilities are differentiators — this is not average Apex land. Custom home comps at $344-357/SF confirmed 2 miles away. At $360/SF all 15 homes, investor nets $2,880,507 (21.3% margin, 103.3% CoC) on $2.79M out of pocket. At $300/SF (conservative) the deal returns 7% — never great but no principal loss. Negotiate toward $1.64M using 9+ months listing history; at $360/SF pay full ask. Primary verification: plat approval status and Cary tap fees.