31 Parum rd - APPROVED SHOVEL-READY 30-UNIT DEVELOPMENT 2.55 Acres of Commercial Land Offered at $750,000 in Colchester, CT 06415

31 Parum Road is an approved, shovel-ready 30-unit multifamily development opportunity located in Colchester’s SU Suburban District. The project is offered at $750,000, with all entitlements fully in place, allowing a buyer to immediately proceed to construction without additional zoning or permitting risk.
The Town of Colchester has approved the development through a Special Permit, authorizing 30 residential units served by public water and sewer. As part of the Town’s long-term Affordability Plan, 9 of the 30 units must be rented based on 80% AMI, and these affordability restrictions will convey to the new owner for a 40-year period. The remaining 21 units may be rented at market rates.
Project estimates are provided as follows: total acquisition and development costs at $7,285,427, inclusive of land, soft costs, and construction for a 28,245-SF proposed building. With entitlements already secured, the buyer benefits from significant time savings, reduced pre-development risk, and predictable project parameters.
Upon stabilization, the project is projected to generate $788,832 in total annual rent, supported by a mix of market-rate and affordable units. Year 1 Net Operating Income is estimated at $572,189, reflecting strong demand fundamentals in Colchester and limited new multifamily supply in the region.
Based on pro forma performance, the project is expected to achieve an estimated 1.44 DSCR after stabilization, indicating healthy cash flow coverage relative to typical debt service requirements. At a 6% capitalization rate, the stabilized valuation is projected at $9,536,483, providing a compelling spread between development cost and stabilized value.
This offering represents a rare opportunity to acquire a fully entitled, shovel-ready multifamily project in a growing Connecticut community with strong rental demand, predictable regulatory conditions, and long-term affordability compliance already structured. The combination of approvals, projected financial performance, and attainable entry pricing positions 31 Parum Road as an attractive development opportunity for builders, investors, and portfolio owners seeking stabilized multifamily assets in the Hartford-New London corridor.