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MARGINAL · 11.7% MARGIN $1M–$5M project
#3 · 2700 Forestville Road, Wake Forest NC 27587
Land parcel — see MLS listing for aerial/plat
List price$1,750,000 (LoopNet/AcreValue commercial listing; verify active — auction date 7/15/2026 passed, status UNCONFIRMED)
Acreage15.76 acres total — 11.79 ac + 3.97 ac either side of Forestville Rd (two separate lots)
MLS / ListingLoopNet #25195044 / AcreValue listing dated Jun 5, 2026; VERIFY current availability
ZoningR Residential — Wake Forest UDO; exact code and min-lot size VERIFY
UtilitiesPublic water and sewer available at street
Preliminary plan24 single-family lots (on the 11.79-acre parcel); plan filed — VERIFY approval status
Location<4 miles from I-540; adjacent to 224-unit apartment + 147-townhome development underway; one of fastest-growing Wake County corridors
StrategyDevelop subdivision infrastructure (roads, utilities, stormwater); sell 24 finished lots to production builders at est. $150k/lot
Out-of-pocket cash$913,447 (equity + land closing + loan closing + carry — lot-sale strategy)
Financed$2,157,750 development loan (~75% of project)
ModeledLot-sale strategy: 24 lots × $150k = $3.6M revenue; 18-month development timeline; $150k/lot estimate based on back-calculated builder MAO from $243–250/SF Wake Forest ARVs — VERIFY with recent lot trades
Max offer (20%)
$1,475,000
Pro Forma
| Line | Amount |
|---|
| Gross revenue — 24 finished lots at $150k each (sold to production builders; est. from $243-250/SF Wake Forest new-home ARV) | $3,600,000 |
| Land acquisition + closing (~2%) | ($1,785,000) |
| Subdivision infrastructure — developer cost (24 lots × ~$35k: roads, utilities, stormwater) | ($840,000) |
| Home On developer margin (20% intro rate on infrastructure scope) | ($210,000) |
| Soft costs — engineering, survey, entitlement, permits (AT COST, ~5% of infra) | ($42,000) |
| Contingency (N/A — lot-sale strategy; no Home On construction scope) | ($0) |
| Development loan closing + carry (1.5% closing + 10% APR, 18-month timeline, avg 50% drawn) | ($194,197) |
| Selling costs (~3% for bulk lot sales) — paid at closing | ($108,000) |
| NET PROFIT TO INVESTOR | ~$420,803 · 11.7% margin · 46.1% cash-on-cash | at $165k/lot: ~$770,003 · 19.4% margin · 84% COC |
Lot pricing estimated: production builders in Wake Forest need lots at $135–165k to build 2,200 SF homes at $139/SF all-in and sell at $243–260/SF ARV with 8–12% builder margin. $150k/lot is the modeled midpoint — no confirmed recent comparable lot trades sourced; VERIFY with local listing agents. Full build-out scenario (24 homes, 2,200 SF, $250/SF ARV): all-in $12.64M, net proceeds $12.28M — marginally loss-producing at this land cost. At $275/SF ARV: $860k profit (5.9% margin). MAO $1,475,000 for 20% margin on lot-sale path — current ask is $1,750,000 (~$275k over MAO).
Diligence Gates
GO: Preliminary 24-lot plan on file; public water/sewer at street confirmed; <4 miles from I-540; adjacent 371-unit mixed-use development underway confirms corridor momentum.
VERIFY: Confirm property is still actively listed (auction date 7/15/2026 has passed — may be re-listed or under contract); verify exact Wake Forest zoning code, min-lot size, and whether the full 15.76 acres or only the 11.79-acre parcel is included in the 24-lot plan; check Neuse River Basin buffers and FEMA floodplain on both parcels; research whether adjacent mixed-use precedent supports R→townhome rezoning for higher density (would dramatically improve economics); get real comparable lot sale prices from a Wake Forest land specialist.
STOP: If the property sold at or after the July 2026 auction; if environmental issues (wetlands, stream buffers) reduce lot yield below 20; if zoning minimum lot size exceeds what the preliminary plan assumes.
Verdict
MARGINAL — the land is priced $275k over the MAO for a 20%-margin lot-sale exit. At $150k/lot the investor nets $421k (11.7% margin, 46% COC) — serviceable for a developer with patience but below Home On's 20% target. The lot-sale number improves to $770k (19.4% margin) if builders pay $165k/lot, which requires $250+/SF ARV market support. The full build-out at $250/SF is barely breakeven; at $275/SF it generates $860k but only 5.9% margin over 24+ months. The real upside is an entitlement play: the adjacent multifamily precedent suggests this corridor could support townhome rezoning — 50+ townhome units on 15 acres at $275+/SF would re-price the entire deal. Recommend engaging a Wake Forest land broker to (a) confirm the listing is live, (b) pull actual lot comps, and (c) test the seller's flexibility toward $1.4–1.5M before spending further time here.