Case Study: Land & Rezoning Project
Land Parcel Sold at Increased Value through Extensive Research and Marketing
Location: Upper Macungie, PA
Property Type: Land
NAI Summit faced the customary challenge inherent in any real estate venture; to elevate the value of a ±14 acres agricultural land listing in a low-density residential zone. The goal was to uncover untapped potential and create greater value than currently existed.
Armed with knowledge and an unwavering commitment to thorough research, Matt Sprung embarked on an extensive exploration of municipal documents. Meetings with municipal planners and engineers provided invaluable insight, revealing a critical piece of information; the municipalities Comprehensive Plan was undergoing changes. The property owner was unaware of this development, and unfortunately, the process was too far along to consider reclassifying the parcel to a higher density zoning.
Regardless of this rezoning, the Comprehensive Plan disclosed a significant opportunity. It outlined a “growth boundary,” designating the subject parcel within the Township’s Act 537 Plan Service Area. This designation opened avenues for higher density housing, campus-style development, town center development and redevelopment, which were not previously permissible. Erroneously, the property was being treated as though it was outside the growth boundary, hindering its true potential.
Additional research highlighted key aspects indicating the parcel’s zoning was inappropriate based on its location within the “growth boundary.” The property also met all criteria for “Lands Available for Development” where parcels are identified as suitable for higher density development by the municipality.
Though unable to secure immediate zoning changes, the research findings laid the foundation for Sprung’s marketing strategy. By aligning the marketing materials with the Comprehensive Plan’s vision, Sprung showcased the potential for corrected zoning in the future.
The power of research and knowledge led to multiple offers, including an offer contingent on apartment density at a value surpassing the asking price. Eventually, Ownership decided to sell the property “as is” to a developer with a vision of unlocking its true potential. The developer plans to develop the parcel in the future, adhering to a higher density consistent with other properties in the “growth boundary.”