Download PDF
← Back to overview
GOOD · 21.3% MARGIN $1M–$5M project
#2 · 8400 Henderson Rd, Apex 27539
6.97-acre flat site · Town of Cary jurisdiction · MLS 10170310
List price$2,000,000
Acreage6.97 acres (flat, minimal tree cover, pond on lot)
MLS10170310 (listed via Morton Bradbury Real Estate Group; active 2026)
ZoningResidential — Town of Cary jurisdiction (Apex 27539 address); 15-lot subdivision plan prepared
UtilitiesMunicipal utilities confirmed; public water confirmed; verify public sewer connection point with Town of Cary
LocationOff Optimist Farm Rd, Apex — minutes from future Veridea mixed-use PUD, Downtown Apex, Downtown Holly Springs, I-540
StrategyEntitlement: get 15-lot plat approved + stub infrastructure, sell lots to production builders at $290,000/lot
Out-of-pocket cash$1,129,979 (equity + closings + 15-mo carry)
Financed$2,211,563 development loan (~75% of project)
ModeledLot-sale scenario: 15 approved lots at $290,000 each; Cary median $630k closed (Nov 2025)
Max offer (20%)
$2,053,000
Pro Forma
| Line | Amount |
|---|
| Gross revenue — 15 approved platted lots × $290,000 (Town of Cary jurisdiction, near Veridea) | $4,350,000 |
| Land acquisition + closing (~2%) | ($2,040,000) |
| Entitlement — survey, civil engineering, plat approval (at cost, no HO markup) | ($200,000) |
| Subdivision infrastructure cost (15 lots × $35,000/lot cost) | ($525,000) |
| Home On infrastructure margin (20% intro rate; standard 30%) | ($131,250) |
| Contingency (10% of infrastructure cost, AT COST — typically returned if unused) | ($52,500) |
| Development loan closing + carry (1.5% closing + 10% APR, 15 mos half-drawn) | ($171,396) |
| Selling costs (~7%) — paid at lot closings, not out-of-pocket | ($304,500) |
| NET PROFIT TO INVESTOR | ~$925,354 · 21.3% margin · 81.9% cash-on-cash |
Lot-value support: Cary closed median $630,000 (Nov 2025, Triangle MLS, $262/SF overall); production builders in Town of Cary jurisdiction pay $250–350k for ready-to-build lots in desirable infill and planned subdivision contexts. $290k/lot modeled as conservative basis; Veridea proximity should support $300–325k as development matures. Build scenario upside: 15 × 2,000 SF homes at $400/SF = $12M gross → $2.7M profit (22.5% margin) — viable if Cary-jurisdiction pricing reaches $400/SF premium tier. MAO $2,053,000 — $53,000 cushion above ask.
Diligence Gates
GO: 15-lot residential subdivision plan already prepared (reduces entitlement risk); Town of Cary jurisdiction (reliable permitting, strong buyer demand); flat topography + minimal trees (lower site-prep cost); location near I-540 and Veridea.
VERIFY: Confirm public sewer connection point and capacity with Town of Cary (municipal water confirmed; sewer must be explicitly verified); zoning classification in Cary UDO (minimum lot size, setbacks, density); confirm the pond on site is not jurisdictional wetland and does not trigger Cary stormwater requirements that reduce net lots; review existing HOA/deed conditions; get current lot-sale comparables from Cary/Apex production builder transactions.
STOP: If sewer is not available or requires expensive off-site extension; if wetland/pond triggers significant impervious-surface limits that reduce net lots below 12; if existing deed covenants prohibit residential subdivision.
Verdict
GOOD — a 15-lot production development in Town of Cary jurisdiction near the 1,200-acre Veridea mixed-use development. Primary path: entitle the 15-lot plan and sell lots to production builders. At $290k/lot (conservative for Cary), investor nets $925,354 (21.3% margin, 82% C-o-C). At $310k/lot, margin climbs to 24%. Full-build upside: if Home On constructs all 15 homes at $400/SF Cary premium, profit jumps to $2.7M (22.5% margin). The $2M ask sits just $53k below the entitlement-path MAO — negotiate hard. Critical gate: confirm Cary public sewer before going under contract.