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GOOD · 22.2% MARGIN $10M–$15M project
#1 · 1008/1010 Copeland St, Apex, NC 27523
5.8 ac at 1008/1010 Copeland St, Apex 27523 · MLS 10059982 · RA → Medium Density (Apex 2045)
List price$1,500,000 (MLS #10059982, Fathom Realty NC — been on market; motivated seller likely)
Acreage5.8 acres (1008 Copeland: 2.96 ac + 1010 Copeland: 2.84 ac — two parcels, sold together)
MLS10059982 (Doorify/Triangle MLS)
ZoningRA (Residential Agricultural) — current. Apex 2045 Future Land Use: Medium Density Residential (7–12 units/acre)
UtilitiesPublic water AND public sewer confirmed on adjacent parcels; no HOA; no subdivision
Strategy(B) Build new: rezone → 30 townhomes × 1,700 SF → sell; OR (D) Paper win: rezone → sell entitled lots to builder
Out-of-pocket cash$4,025,888 (25% equity $2,993,225 + loan closing $134,695 + 24-mo carry $897,968)
Financed$8,979,675 construction loan (75% of $11,972,900 total project cost)
Modeled30 townhomes × 1,700 SF @ $360/SF (Downtown Apex Q2 2026 median sold: $375/SF per Redfin; using $360 conservatively)
MAO$1,858,000 at $360/SF — current ask $1.5M is $358K BELOW MAO. Cushion: 19%
Paper-win entitlementBuy $1.5M → rezone ($100K) → sell 30 entitled lots @ $200K/lot = $6M gross → ~$3.8M net profit, $672K out-of-pocket, ~18-month hold
Downside (no rezone, RA only)8 homes × 2,400 SF @ $360/SF → ~12% margin / 41% C-o-C — survivable floor
Max offer (20%)
$1,858,000
Pro Forma
| Line | Amount |
|---|
| Gross revenue — 30 townhomes, 1,700 SF each × $360/SF (comps: Downtown Apex median $375/SF Q2 2026) | $18,360,000 |
| Land acquisition + closing (~2%) | ($1,530,000) |
| Construction — builder cost (51,000 SF × $111/SF, builder grade) | ($5,661,000) |
| Home On builder margin (20% intro rate; standard 30%) | ($1,415,250) |
| Site development — 30 lots × $30K/lot (public utilities, incl. 20% margin) | ($1,125,000) |
| Subdivision infrastructure — 30 lots × $35K/lot (incl. 20% margin) | ($1,312,500) |
| Sewer/water extension to site — AT COST, no margin (est. 200 LF from adjacent parcel) | ($80,000) |
| Contingency (10% of construction cost, AT COST — typically returned to investor if unused) | ($566,100) |
| Soft costs — design/permits/survey (5% of construction, AT COST) | ($283,050) |
| Construction loan closing (1.5% × $8,979,675 loan) | ($134,695) |
| Carry — 10% APR × 50% avg drawn × 24-month build | ($897,968) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($1,285,200) |
| NET PROFIT TO INVESTOR | ~$4,069,237 · 22.2% margin · 101.1% cash-on-cash |
ARV support: Downtown Apex Q2 2026 median sold $375/SF per Redfin (30+ homes); 206 S Salem St → $368/SF; 205 W Moore St → $367/SF; 210 S Hughes St → $503/SF. Model uses $360/SF × 1,700 SF = $612,000/unit, below current market median. MAO $1,858,000 — at $1.5M ask, investor is $358,000 below MAO (19% cushion). Even if only 20 units approved on rezone, investor still clears 20%+ at $360/SF.
Diligence Gates
GO: Apex 2045 Future Land Use designates this parcel Medium Density (7–12 units/acre) — strong planning-policy tailwind for rezone from RA.
GO: Both public water AND sewer confirmed on adjacent parcels — minimal extension needed.
GO: Walking/biking distance to downtown Apex restaurants, shops, Apex Friendship corridors.
GO: No HOA; no subdivision; clean parcels.
GO: $1.5M ask is 19% below MAO at conservative $360/SF comp — meaningful buffer.
VERIFY: Schedule pre-application meeting with Apex Planning (apexnc.org) — confirm rezone timeline, likely conditions (density cap, open space, traffic study), and any prior denials.
VERIFY: Call Apex Utilities to confirm sewer/water extension cost and available capacity from adjacent parcels (confirm gravity feed vs. pump station needed).
VERIFY: Desktop FEMA/NHD/wetlands review on the 5.8-acre parcel — flag any riparian buffers or floodplain that would reduce net buildable area.
VERIFY: Pull days-on-market full history — if listed 12+ months with no offers, confirm no hidden title/survey/easement issues.
STOP: If Apex Planning indicates the rezone is unlikely or site has deed restrictions preventing medium-density use.
STOP: If sewer extension requires a pump station ($150K+) or capacity is constrained.
STOP: If >20% of the acreage is in FEMA floodplain or regulated wetlands.
Verdict
GOOD — recommend moving to Phase 1 diligence this week. The combination of (a) Apex's own 2045 plan calling for medium density here, (b) adjacent public utilities, (c) a $1.5M ask 19% below MAO at conservative comps, and (d) downtown Apex walkability makes this the strongest land play in the Triangle right now. Build scenario: 30 townhomes at $360/SF (conservative vs. $375 median) → investor nets +$4,069,237 (22.2% margin, 101% cash-on-cash) on $4.0M out-of-pocket over ~26 months. Entitlement scenario (lower risk, faster): buy → rezone → sell 30 entitled lots at $200K/lot → investor nets +$3,760,662 (62.7% margin) on only $672K out-of-pocket in ~18 months. Even the no-rezone downside (8 RA homes) produces ~12% margin. Strong deal — diligence first.