Above you can see the value of the land. Another option is to lease it on a long term land lease. Perhaps several terms of 50 years each.
Advantages to leasing for the developer are;
- Lease rate is 100% deductible
- Less up front deposit
- Developer's capital can be focused on the development, not buying land
- Less $ to finance means less finance costs, less interest and less financing fees
- Less capital tied up by developer means they are more liquid and can participate in other opportunities
- Lower overall investment for the developer
- The development ends up paying the lease rate, like a cost of doing business.
- The improvements on the land can be depreciated 100%
- No land transfer tax for buyer
- No capital gains tax for seller