A few weeks ago I identified D1 and D2 zoning types (Industrial and Work Place) as potential value-add targets within the Opportunity Zones. This week, I’ve circled back and have broken down the numbers below. For me, it's the D1s that offer unique zoning traits and a different type of opportunity from my previous posts. Here is the parcel breakdown:
D1 and D2 parcels within Miami Opportunity Zones
D1 and D2 Parcel Distribution in Miami Opportunity Zones
Less than 1% of the total parcels within the zones are zoned D1 or D2. But both offer ample opportunity to very specific client types that own and develop in this development space.
The D2s have limited uses allowed: Office, Retail and Industrial. Only 23% are on vacant land, and 49% of the total were built before 1970. These, like the D1s below, lend themselves towards rehab projects and specific client types.
For me, it is the D1s that peaked my interest as a potential undervalued asset, lending itself to rehab and/or redevelopment, with approximately 371 parcels having structures built before 1970. That’s about 53% of the parcels. Approximately 33% of the D1s are on vacant land. Because they are zoned ‘work-live’, they allow for residential units with a density of 36 units/acre. They also allow for office, retail and industrial per the Miami 21 zoning code. This mix of residential and office/retail space could offer exceptional returns and also differentiate these particular developments within the market with the work-live component.
Below, I’ve modeled three different scenarios within both zoning types:
SCENARIO 1: D1, Existing Building Site, Mix-Use Development
Real Estate analysis using Deepblocks Beta
Zoning Type: D1
Lot Size: 24,192 SF
Uses: Office + Retail
Building Height: 8 floors
Total Gross Buildable: 50,502 SF
Sample Report from Deepblocks Beta.
Download PDF
SCENARIO 2: D1, Existing Building Site, Mix-Use Development
Real Estate analysis using Deepblocks Beta
Zoning Type: D1 (same site as above)
Lot Size: 24,192 SF
Uses: Multifamily + Office + Retail
Building Height: 8 floors
Total Gross Buildable: 50,502 SF
Sample Report from Deepblocks Beta.
Download PDF
SCENARIO 3: D2, Existing Building Site, Mix-Use Development
Real Estate analysis using Deepblocks Beta
Zoning Type: D2
Lot Size: 81,435 SF
Uses: Office + Retail
Building Height: 8 floors
Total Gross Buildable: 355,420 SF
Sample Report from Deepblocks Beta.
Download PDF
Stay tuned next week!
I’ll be looking into the New York City Opportunity Zones.
