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Deal Scout · Opportunity #3
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MARGINAL · 22% MARGIN $5M–$10M project

#3 · 1350 Hillsboro St, Pittsboro, NC

Land parcel — see MLS listing for aerial/plat
List price$3,000,000
Acreage31.89 acres (4 parcels: 6695 / 6696 / 6673 / 6674)
MLS10173242 — Caruso Homes listing, Chatham County
ZoningR-12 / R-A / PIETJ (Pittsboro ETJ); Town of Pittsboro receptive to quality infill development
UtilitiesPublic water AND public sewer confirmed at road — rare for a 31-acre Chatham County parcel
Disney / Chatham ParkDisney Asteria (Storyliving by Disney) broke ground June 2025 within Chatham Park — 4,000+ homes, sales begin 2027. Adjacent to NoVi district (600+ units, David Weekley, Homes by Dickerson, Tri Pointe)
StrategyDevelop: plat 60 lots, install infra with Home On, sell finished lots targeting 2027+ price environment
Out-of-pocket cash$3,024,600 (equity + closings + carry)
Financed$6,390,000 construction loan (~75% of $8,520,000 project cost)
Modeled60 finished lots × $220,000 (2027+ Disney-proximity scenario); at current $150k/lot MAO = $679k — deal does not work today at $3M ask
Project cost
$9.41M
Gross revenue
$13,200,000
Net profit
+$2,861,400
Margin
22%
Max offer (20%)
$3,498,000
Pro Forma
LineAmount
Gross revenue — 60 finished lots × $220,000 (2027+ Chatham Park / Disney-proximity premium)$13,200,000
Land acquisition + closing (~2%)($3,060,000)
Site development / infrastructure — 60 lots × $65k/lot cost (incl. 20% margin)($4,875,000)
Soft costs (design / permits / survey — at cost, ~5% of infra scope)($195,000)
Contingency (10% of infra scope, AT COST — typically returned if unused)($390,000)
Construction loan closing + carry (10% APR on draws, 2.5-yr infra build)($894,600)
Selling costs (~7%) — paid at sale closing, not out-of-pocket($924,000)
NET PROFIT TO INVESTOR~$2,861,400 · 22% margin · 95% cash-on-cash (2027+ scenario ONLY — at current $150k/lot the deal is a PASS)

Comp support: Chatham Park new construction 2025–2026: Homes by Dickerson $242–$246/SF; David Weekley Encore $369/SF; townhomes $227–$280/SF. Finished lot values inside Chatham Park currently estimated $100–$150k (limited MLS data). Disney Asteria projected to push corridor lot premiums to $175–$220k+ by 2027–2028. At current $150k/lot × 60 = $9M revenue: MAO is $679k — asking $3M is not supported today. MAO $3,498,000 is only reached at $220k/lot (2027+ scenario). This is a land-hold thesis, not a 12-month flip.

Diligence Gates
GO: Public water AND sewer confirmed at road (verified per listing); R-12 base zoning supports residential subdivision; Disney Asteria groundbreaking June 2025; Chatham Park NoVi underway with national builders. VERIFY: (1) R-A vs. R-12 parcel split and minimum lot sizes per parcel; (2) Sewer capacity from Town of Pittsboro for 60+ lots; (3) Pond/wetlands setbacks, rolling terrain constraints; (4) Road access and frontage for all 4 parcels; (5) Current comparable finished lot transactions in Chatham Park; (6) Disney Asteria home sales pricing and timeline confirmation. STOP: Deal does not pencil at $3M at today's lot values ($150k/lot). Do not close without either (a) a negotiated price below $2M, or (b) a 3–4 year hold strategy with confirmed capital reserves.
Verdict

The math does not support $3M at today's Pittsboro lot prices (~$150k/lot; MAO $679k). The thesis is entirely a Disney/Chatham Park forward-value bet: if Disney Asteria drives finished lot values to $220k by 2027–2028, the 60-lot development generates +$2,861,400 (22% margin) and the $3M land price is inside the $3.5M MAO. The confirmed public sewer (rare for Chatham County at this scale) and Pittsboro's stated appetite for infill development are genuine differentiators. Recommended: negotiate land price to $2M–$2.5M (offer with hold clause), or watch and re-evaluate in Q2 2027 once Disney home sales begin and lot comp data is available. Do not buy at $3M without a 3–4 year hold budget.

Deal Scout · 2026-10-03 Home On LLC · NC GC L-103184Confidential — Home On LLC