Watertown, MN Townhome Development Opportunity: Five Existing Units With Room for Seven More
I am pleased to offer a rare commercial real estate opportunity at 409–417 Hunter Drive, Watertown, MN 55388. This property combines five existing townhomes with seven additional individually platted development lots, giving a buyer the opportunity to acquire an established residential asset and complete the larger 12-unit project.
Originally platted as 401–423 Hunter Drive, the complete development provides several possible strategies for an investor, builder or developer. The existing residences may offer immediate value, while the remaining lots create meaningful potential for expansion.
Five Completed Townhomes
The existing building contains five two-story townhomes, each offering approximately 1,408 finished square feet. Four residences have two bedrooms and two bathrooms, while one has three bedrooms and two bathrooms.
Each unit features a walkout lower level and an attached two-car garage—important features for attracting buyers and tenants in the Watertown market. Many of the residences have updated kitchens, and the building also benefits from newer windows and entry doors. The roof is approximately nine years old.
One of the property’s most valuable characteristics is its parcel structure. Every completed townhome has its own property identification number rather than being combined on a single multifamily parcel. The undeveloped lots are also individually platted.
This may provide a future owner with greater flexibility when evaluating rental operations, financing, construction phases and potential individual unit sales. Buyers should independently verify their proposed plans with the City of Watertown and other applicable governmental authorities.
Seven Additional Platted Units
The development was planned for a total of 12 townhomes, leaving room for seven more residences beyond the five already constructed.
Three additional units can potentially be built south of the existing building. Each of these lots was platted to accommodate an approximately 22-by-48-foot building footprint. The existing townhomes were constructed with smaller 22-by-32-foot footprints, meaning the southern lots may accommodate noticeably larger residences.
Four additional units are platted for the north lawn. These lots provide approximately 22-by-66-foot building footprints, creating even more potential for larger floor plans, additional living space or designs tailored to current buyer and renter preferences.
The differences between the existing and future building envelopes create an opportunity to improve upon the original unit design. A developer could explore larger kitchens, more spacious primary suites, home offices, additional bedrooms or other features that reflect today’s housing market.
An Opportunity With More Than One Exit Strategy
This is not simply a five-unit rental property, nor is it merely a vacant development site. It is a combination of existing residential real estate and future development potential.
A buyer could consider several approaches:
Hold and operate the five existing townhomes as rental properties.
Update and sell the completed residences individually.
Build the seven remaining units and sell all 12 townhomes.
Retain some units as rentals while selling others.
Complete the development in phases to spread construction costs over time.
The ability to control the entire site is particularly important. It gives one owner the opportunity to establish a cohesive plan for the existing residences, future construction, landscaping, parking and the overall presentation of the development.
Why Watertown, Minnesota?
Watertown is a growing Carver County community located west of the Twin Cities. It offers the small-town atmosphere many residents want while maintaining convenient access to Waconia, Delano, Mayer, Chaska, Lake Minnetonka and the broader western metropolitan area.
As housing costs continue to push buyers and renters beyond the inner metro, communities such as Watertown can become increasingly attractive. Townhomes provide an appealing middle ground between apartments and detached single-family homes, particularly when they include private entrances, multiple bathrooms and attached two-car garages.
The property’s location may appeal to first-time buyers, professionals, families, empty nesters and people seeking more affordable housing within reach of west-metro employment and amenities.
A Rare Watertown Commercial Real Estate Offering
It is uncommon to find a property that combines completed townhomes, individually platted parcels and the ability to more than double the number of existing residences.
At 409–417 Hunter Drive in Watertown, a buyer is not starting from zero. Five homes are already standing, important property improvements have been completed, and the original development plan provides a clear framework for future growth.
For additional information about the existing townhomes, individual parcels or remaining development opportunity, I invite you to contact me directly. I would be happy to discuss the property, provide available documentation and arrange a private tour.
David Gooden
Commercial Real Estate Agent
The Dane Arthur Real Estate Agency
CommercialZip.com
612-367-6025