After some catching up, we have made it to present day (6/15/17)! Here I'll comment on some pieces of land presently for sale on the island. First of all, there ain't much of it. So if you're trying to find land in the $700-$800K range with a total investment of $1.5 to say $1.8M hoping to end up with a property in the $2-$2.5M range, the pickins are extremely slim. I'll first comment on land under $1M which is 14 of the 43 parcels presently on the market.
Takeaways:
-4 Seven Mile Lane seems to be the best deal here, especially if you can get it a little lower, although 24 Field Ave can be a contender if it passes the smell test. (Under agreement 6/26/17)
-I have a very detached analytical approach, so things sometimes sell for more that I think they will. Its what typically happens when there is something in high demand with virtually no supply.
- Its 6/26 (11 days after the original post) and 3 of these are already under agreement.
2 and 4 Seven Mile Lane. $995,000 and $925,000 respectively. These are located off Milestone Rd on the right (almost across Milestone from the troubled Hydrangea Ln). These border conservation land to the rear which is nice. I would definitely lean toward #4 because it is set further back off Milestone and is $70,000 cheaper than #2 (which comes with plans but they are probably not worth $70,000 and may not be what you want anyway!). Since these have been on and off the market for a couple of years, I would think an offer of $850K for #4 should get some movement, 875K would be ok for this. This is certainly $2M+ territory and quite likely getting toward $3M, so these prices arent terrible at all, just maybe a little downward tweak is all they need.
18 Mount Vernon St $980,000 This has been on the market since Sept 2016 and as I've commented before, I feel it is overpriced by about $200,000 or more. At $800K it would be 33% of a probable $2.4M final value, at $750K ($230,000 less than present ask) it would be 31%. Keep in mind 2 Camelia, which is similar in size and the same zoning, and which will produce a similarly valued property, sold for $695,000 in Jan 2017. Dont be fooled by the recent nearby $3.8M sale at 5 Joy St, that is a much bigger lot in different zoning that allows for a pool (this was heated salt water with pool cabana, etc), whereas OHD (Old Historic District) zoning does not (you can have a "Spa" though, which can be up to 1000 gallons). OHD zoning does provide for 50% ground cover while the R1 zoning at 5 Joy is only 30%, but since its a much bigger lot (roughly twice the size), you can do more with 5 Joy than you can with 18 Mount Vernon. They are really different animals.
10 York St $950,000 This is the crazy listing I talked about that is worth about $450K. The listing at 20A York St (see below) is a better deal (and much better set back spot) by $200,000 but it too is over priced for the neighborhood.
115 Surfside Rd $925,000 (SOLD 6/7/17 $900,000, looks like the market caught up with this!) Listed nearly 2 years ago, 8/5/15, this just short of an acre this lot is about a 5 minute bike ride to Surfside Beach. I'd put this in the "maybe up to $2M" finished range which makes the lot expensive. I would think a price closer to what 2 Camelia Ln sold for, around $700,000 might cause this to move, with $600-650K more like it. The market has been slowly catching up to these longer listings but so far not this one, I think because this one still has a ways to go (see the recent 8 Nonantum sale at $830K (and previous $675K sale the same month this was initially listed), which although much smaller, is just steps from Surfside Beach).
33 Okorwaw $865,000 (reduced from $950K) .92 acre lot in Surfside over toward the airport. While not right along the airport fence like 1 Monohansett, its only about 800ft from the Monohansett lot, and only 1500 ft from the run-up area (where they warm up their engines) of Runway 6. There does seem to be about a $2M potential in the neighborhood, so a $700-$750K price is not out of the question, making the $865K asking price a little high but not crazy. I think taking the $65K off would help bring an offer (that they should probably take).
134B Main St $849,000 This is an interesting spot on Main St. There are 2 other structures in the back that it looked were "condoed" at one time. I dont know if it is because this has an old garage on it brings it into the 81L category (looks that way), but regardless, its a 4296 sq ft lot right off Main St. Its a little strangely shaped and has a parking easement for the front house, so it is a bit limited (and tight!) in there. OHD zoning gives you 2148 sq ft of ground cover but because of the parking easement and the odd shape, you might have trouble using it all. Still you can put a decent sized house here, its just really crowded in there! Its right at 1/2 mile walk to the Hub on Main St. Although they are trying to get $3.695M for the front house (3866 sq ft), I think you will be limited to about $2M potential here because its so crowded, so I put the value similar (or a bit lower) to 2 Camelia's, at $650-700K.
20A York St $750,000 As discussed above and elsewhere, my feeling is for a 500-550K value here. The original house is under agreement as of 6/16/17 so it will be interesting to see what it goes for, if it can break the concrete-like $1.3M barrier of this street. This is an extremely busy cut through one way street which forces you into "5 corners" every time you leave the driveway, which I'm sure is the driving factor limiting this to a $1.3M street. UPDATE: 6/23/17 this lot is Under Agreement. Seeing this along with HDC action for demo of the garage along with the original house going under agreement in recent days makes me wonder if the 2 buyers are the same. Either way it looks like the owners made a good profit here because of that old garage! We'll see soon enough!
4 Hydrangea Lane $725,000 As discussed at length, this neighborhood seems to be having problems bringing $2M for a finished house. If it cant do that, then 700K becomes a problem for the lots. Also there are multiple lots for sale (#9 at $719K and $1.269M for both 6 and 9, or $634,500 each). I'm not sure what the answer here is but it seems it will contain the word "cheaper", or "price improvement".
24 Field Ave $695,000 (apparently raised from $675K although Zillow still says $675K) This was under agreement and was going through HDC and I figured it had been sold but apparently it fell through and is back on the market. Field Ave is off of South Shore Rd which is affectionately called "Sewer Bed Rd" since the wastewater treatment plant is at the end. Since this lot is down the end of Field Ave, it is about 1700 feet to the east of the sewer beds. I have no experience in this area, but I would want to spend some time sniffing around on the lot during a westerly breeze before I made an offer. Otherwise it is about a 2000' walk down a dirt road and path to the beach, which lands you just west of Surfside Beach (nice!). There is a recent (Oct 2016) $1.57M sale across the street with a smaller house, so it seems there could be higher potential here, just bring your nose first. This is a nice lot if it passes the smell test. UPDATE: Under agreement 6/26/17 and "pending Sale" on Zillow.
4 Perry Lane $650,000 This is off Bartlett Rd and is geared more toward a residential/commercial type use which puts the price rather high in my opinion. The assessment is only $264,700, and was sold on 5/13/14 along with 6 Perry Ln for $750K (which I thought was awful high at the time). That would leave him with the lot at #6 for only $100K, not bad if he can get it. I dont think he's going to get it. I would put the value at about what he paid for it, about 1/2 the $750K, or about $375K.
55 Goldfinch Dr $599,000 Lot with plans (Huntington modular). As discussed elsewhere, this appears to be someone who was going to build a spec house but has decided instead to sell the lot with HDC approved plans. Unfortunately due to the price they paid for the lot, they will be lucky to break even. Even is still better than losing though! Although this neighborhood will likely appreciate over time, it is a very well defined and enclosed development of 190 homes. It is very difficult to do "something more" (like a bigger than average house) in a place like this and do well. I think thats where the mistake here was. Its also more difficult to do cheaper spec homes because there isnt much margin for error. The market can correct $500K (or even $1M) on a $5M spec home and you're still not going bankrupt. You're not going to be happy, but when you think of what else will be happening in the markets to cause that correction on Nantucket, breaking even will be a lot better than if you had that money in the markets. With a lower end spec you dont have that kind of safety net.
3 Mary Anne Dr $475,000 5000 sq ft lot in year round res/comm area near the Airport. Most of the sales in this area have been in the $500-700K range....with buildings. So $475K for the land seems a bit high. It is owned by a broker who wants to do a 1031 exchange. I did a 1031 with 2 Camelia and for the buyer this means virtually nothing other than signing something that says you understand it is a 1031 exchange. It doesnt require any expense on part of the buyer and doesnt mean the seller has to buy any property from the buyer. I'll write up a 1031 info post at some point since nearly all the info I got from real estate agents and even lawyers was wrong.
10 Alexandia Dr $399,000 This lot is located in a predominantly year round area and has quite a bit of development potential for rental units or employee housing. I'd like to see the price closer to 300-350K though. UPDATE: Under Agreement 6/20/17
Thats it! All the land under a Million! Didnt see anything you liked? You're not alone! I guess its over a million we go...
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