30,000 square foot Waterfront Plot in NYC likely to be rezoned R5-R8 in the next few years. WWYD?
Hey everyone. I'll make this short and sweet but recently my family has gotten very lucky and NYC has built a Ferry Dock and an $8 MM Park right next to our property in Rockaway Park Queens. The area around it has been terrible for decades but Gov Spending in the area after Hurricane Sandy and this expansion of public transportation is really starting to attract more affluent residents and developers. Some comparable properties to ours have seen 500% increase in values over the last 6 years. In development on our block is a new $10MM hotel and 3 New Condo Buildings as well as a 6 plot assemblage 100Ksqft Dev Site currently on the market. We own the property free and clear but have no experience in real estate development. I'm 30 years old and although I've worked the sales side of Commercial RE I lack experience in construction. I'm considering finding a job in construction management so that when the time comes (rezoning comes through) I am better positioned to start a RE Development Company with this property as it's flagship asset.

If you were in my position what steps would you take now in preparing yourself? How would you approach financing? What surprises am I in for?
[{"id": "e10rtr7", "text": "I am not a NYC or major market player - so take this with a grain of salt.\n\nI am a vertically interdigitated developer and contractor.\n\n30k sf is a pretty big chunk.  Go for the R8 if you can, the value will be 4-5x times higher than an R5 due to the higher density.\n\nI would take on a partner with experience in this deal as opposed to selling it outright, consider kicking in the appraised land value as equity towards the development.\n\nI would NOT consider developing this yourself.  It is not just construction management.  It is design, permitting, construction financing, mini perms, full loans and sales.  You are also going to have to have the cash on hand to \"develop it\".  Phase I, soil borings, architectural/civil/mep fees.  Expect to pay $200M out of pocket before a bank is even willing to talk to you.\n\nYour goals are admirable, but you can't just go 0-$10MM construction by yourself.  Furthermore, if you condo it out, you should always expect a lawsuit from the HOA in 7 years, even if you built the perfect building, the will always sue for some form of latent defects.\n\nMy advice?  Get the entitlements for the site and flip it or become part of the deal with a developer in the area.  Entitlements are where it is at with the least amount of risk.  If you can deliver a packaged, fully permiited, shovel ready deal to a developer, they will pay top dollar for it and you can set your own terms", "replies": [{"id": "e10u3b7", "text": "I work in specifically Brooklyn and Queens new development sales and I 100% agree with the above. Entering into what\u2019s called a JV with a developer will give you 0 responsibility with the construction and liability with buyers but will deliver a good percentage of the earnings to you. I worked on a building with this situation last year and the original land owner was totally stoked with his life the entire time. He even got a condo and storefront space out of it on top of a bunch of cash. Developers like it too because they need much less money upfront for a purchase.\n\nGet a good attorney, appraise your land, get a zoning analysis if you can, and approach the developers building stuff near you. Lucky man!", "replies": [{"id": "e116vqh", "text": "So many options, you could even lease out the land to a non condo developer which is a fantastic position for a land owner. Have them build on your land and pay you rent.", "replies": [], "depth": 3}, {"id": "e119rke", "text": "Do what this guy said.\n\n\nYou will be a limited partner and by contributing the land as your equity you will own a big stake in the project. You can choose to be pretty hands on in the process and thereby learn more and make more connections in development. Also you should expect to have your equity returned to you before the developer when the property generates cash flow, that is a pretty standard arrangement. ", "replies": [], "depth": 3}, {"id": "e12jm95", "text": "Nyc Real estate finance lawyer here - joint venture with established developer is the smart move", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e10xinp", "text": "I started working in development just 3 months ago,  still an effective noob. But I can tell you this for sure, do your best to not sell it,  and take on an experienced developer as a partner. \n\nGerding Edlen out of Portland, OR is a forward looking developer with a good background in value add neighborhoods across the US. \n\nSince you've got a few years on your hands, try to get to some CRE events like with ULI or ICSC to build a network. \n\nAlso, MIT offers a number of their MRED classes online for free. \n\nGood luck, sound like fun", "replies": [], "depth": 1}, {"id": "e10xx1e", "text": "If you have no experience in the industry I would seriously consider a ground lease.    It\u2019s a safe low risk option that allows you to collect annual rent (or large one time fee if you prefer) without giving up the underlying land.   While the terms of the lease are long (20-30 years is usually the minimum but 100 years is not unheard of depending on the scale of the development) at the end of the term, or in the event the tenant defaults, you (or maybe your heirs) will have an improved site that is bound to be with more than it is today.   \n\n", "replies": [], "depth": 1}, {"id": "e11n39n", "text": "Please don't make more shitty condos out here :) \nHope you make out rich though, that area still needs a lot of help to bring it back to what it once was", "replies": [{"id": "e12b0fw", "text": "Definitely not going to throw up some cheap cookie cutter building, we have held the property for 50 years and it overlooks the largest open space in all of NYC. The design will respect that and make use of the park/access to water while incorporating s one really unique elements...If we get our zoning approval.", "replies": [{"id": "e12ca3m", "text": "Yeah idk the idea of condos trips me out especially since they seem to be some of the only new construction on the peninsula. But in your shoes probably makes sense, good luck", "replies": [{"id": "e12fkbp", "text": "Not much market rental being built but tons on tons of senior housing/affordable being built in the East side.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]