Redevelopment of the Sagamore Subdivision of Superior

Today I want to talk about the Sagamore subdivision; specifically what the redevelopment and potential lot resale will look like following the fire. The Sagamore subdivision, located behind Costco, was completely destroyed by the Marshall fire. Lot sizes are about 3,000 square feet, which is about half the size of a typical lot in Superior and less than half the size of a lot in Louisville. The space between the houses was 10 feet and the backyards were 10-15 feet deep. 

When thinking what a new house would sell for in the Sagamore neighborhood, I look at comparable subdivisions. The best comparable for this neighborhood are the properties and townhomes around the Sports Stable, which were selling from $800,000 - $1,000,000. Seeing that a single family home is more than an attached, you are probably looking at a $1,100,000 resale price in Sagamore. 

In order to figure out the land price, we have to work backwards.  Therefore starting at $1,100,000, we subtract real estate commissions, which brings us to $1,050,000.  A 2,500 square foot house is going to cost $750,000 to build, so we are now at $300,000. The builder is going to want to make a profit and you must remember that there are holding costs; so, at the end, a builder is going to pay around $150,000 for a lot in that subdivision. 

Currently there is a lot for sale for $350,000 and it will be very interesting to see what that lot ends up selling for. I think the total time to redevelop that area will be 3-5 years; unless one builder comes in and works with every homeowner. It sounds like that may be in process. 

I could talk for hours, give me a call 303-443-5001. Thank you

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