I own commercial real estate. It has value because of its location.
The property is located on a waterway where there are alot of
recreational activities. It is located in a small town which is
located in a metro area whose population is 2 million. The metro area
is properous and growing. My real estate has housed a family owned
restaurant for over 30 years. The building is 14000 sq feet. Much
larger than the requirements of the business. The current restaurant
will cease operations in the next 12 to 15 months.  Portions of the
building are 40 years old. Other portions are 60 years old. The
existing building is made out of concrete. The real estate is zoned
C1-central commercial district. There is one acre of property. It is a
water-front property. My expectation is that when the real estate is
redeveloped the existing building will be demolished. It will be
replaced by a larger structure that utilizes more of the real estate's
surface area. Given its C1 zoning and the preferences expressed by
city leaders, a new structure will have multiple uses-possibly
lodging, condos, service businesses, office space, restaurant, marina,
parking banquet hall. My wife and I don't have the financial resources
or expertise to undertake redeveloping the property ourselves. I want
to learn how to go about redeveloping property. Are there businesses
that do this? Can we contract with a company to redevelop the real
estate? Can we retain equity in the new development or it is more
likely that we would be completely bought out? How does the commercial
real estate development company make money? An equity share? An
upfront fee? How many businesses usually are involved in bring a
development to fruition? business brokers, real estate agents,
development companies, consultants. Is it necessary to hire a broker
to facilitate the process? Does the property have to be sold? If it
would facilate research I am willing to provide more info or
reformulate the questions or dialogue.

All that for $60?  First, do not do this on the cheap. You realize
that you do not have the expertise to do this.  Hire someone to
represent you.  Of course you can sell the property outright, lease
the property, etc.  But to do that you would need to have the property
appraised and put on the market.

Just my humble opinion, from having some considerable secondhand
experience with real estate development:
Your question is too complex and too critical to your financial
well-being to be answered here.  The potential solutions are only as
limited as your imagination -- and as a result, so are the potential
hazards.
You could take on partners.
You could engage a lawyer specializing in real estate development.
You could solicit bids from development firms to buy the property outright.
You could solicit bids from development firms to develop the property
in exchange for shares in the corporation that will manage the trust
that you've created...etc.
See the difficulty of providing advice here?  The right solution will
necessarily be VERY specifically tailored to your financial needs,
your financial picture as it stands now, the potential of the
property, even the permitting process in your local jurisdiction and
whether or not the city/county may try to seize the property through
eminent domain.
With that said, I sincerely hope that a Researcher with more
experience and savvy than I have will be able to help you.

Hagan is a lawyer; his "humble opinion" must be appreciated with knowledge of that.
I am not a lawyer or a professional (read the disclaimer below) but
maybe I can point out an additional point to consider.
It sounds like you have an attractive property with development
potential in an area that is stable or growing.
If you are seniors (Oct191921 ?) with children, it could be sensible
for tax reasons to give them the property now, before it is developed,
less so, if you will be dependent on the income from the property,
whatever decision is made for its development, since this will
probably increae the value.  Or you could give them an interest in the
property that was tax favorable, so that you still were involved and
had some income, either from a later sale or lease.

Just another point to consider, perhaps not applicable to your situation.
Regards, Myoarin

I am real estate developer and I agree that your question is complicated. 
However, you do have the financial resources available. The land is
very valuable and would be considered close to enough equity to build
if you went to a bank with an approved redevelopment plan.

Other Thoughts

Talking to the City planning department is wise.  Making sure that
your plan fits with their master plan is always a critical first step.

Get the land appraised by a commercial appraiser for the proposed use.
You will have a better understanding of the value.

Consider partnering with a developer instead of just selling.  You
will obtain much more income and have less of a tax liability.

If you don't want to partner consider a land lease.  You avoid the
capital gains and you keep an asset that will continue to increase in
value.

To find a deverloper: Drive around and find the developments that are
most successful in your area and interview those developers.

If you try to sell the property yourself place it on Loopnet.com. It
is a #1 national listing of commercial real estate.

Read a book or two on commercial real estate.  It is not rocket
science.  If you are willing to invest some time you will have enough
knowledge to make some educated decisions.


Good luck.

oct191921,

I work in the real estate industry --I create marketing material and
maintain the MLS listing information for five new home developments, I
am currently maintaining MLS accuracy and current marketing materials
for an inventory of about 85 homes. I also farm for raw land and once
a new project is started, I send carefully crafted letters (specific
to the area) to nearby neighbors to see if more parcels can be
obtained.

realestate4184-ga's advice is fantastic, and very accurate --he laid
out several important options to consider and gave great advice.
Partnering is a good idea. The advice on how to locate a good
developer was astute. I would go as far as asking the property owner
how the job went, if it finished on time and within budget. Talking to
the City Planners is another great idea, nothing like having a project
approved easily...

Don't discount getting financing, construction loans are common. Keep
in mind though, they are VERY short term. They aren't structured like
most loans. For a project like yours the term would be 2-5 years or
so.

~~Cynthia