Before you can sell a site, you usually need to have some idea/concept of what its highest and best use might be. I defined highest and best use this way–
“Highest and best use for a property is achieved when the value created by its development for a specific set of physically possible, permitted uses (its functional program) and a particular form of structure combine to produce the highest present value of rents over the economic life of a project”
To read more about highest and best use, please refer to http://www.eqjournal.org/?p=2155.
Here’s how I applied it to a site in west end Ottawa, ON:
Location: west end (Crystal Beach) Ottawa, ONProperty Type: Development sites in the west end overlooking the Ottawa River are increasingly hard to find. This one has nearly 450 ft of frontage & a depth of approximately 150 ft for a total site area of 66,219.6 sf. It is close to Nepean Sailing Club, Abbott Point of Care & the new DND HQ. There is also an existing 8,000 sf building in good condition onsite. Development options include multi-phase condo/commercial high rise & more.
Highest and best use: perhaps the highest and best use for this site is to retain the existing 8,000 sf bldg, converting it to a retail plaza and using the balance of the site (about 35,000 sf) for a 6-storey woodframe retirement residence now that Ontario has changed the OBC to permit that type of construction.
Area: 66,219.6 sq ft (448.12’ frontage x 148.19’ depth)
Remarks: Ottawa has decided to build up not out so this site on Carling Avenue overlooking the river is crucial. It’s a great place for a developer to make a statement. Land value is $147.24 per sf; current height limit is 18 metres but any buyer is likely to push that higher, possibly much higher. The site is so large that development could be in two or even three phases. Existing building can produce immediate income.
Directions: From Westboro travel west on Richmond Road. Veer onto Carling Avenue until you reach 3440. About 9 km.
MLS # 912566
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