I don't really understand how limiting the road to two lanes is going drive down the value of the property? I mean, if these businesses rely on foot traffic and the city shut down the sidewalk (or something of that nature) then it would make sense, but how many people are just driving on that road, see an interesting-looking business and want to check it out but can't because they can't turn in, and can't muster the willpower to drive down the road and turn around?

Granted I don't drive often anymore, but I can't really wrap my mind around what you are saying, though the rest of it--once the prices are down, buy up the property and build housing in a good location--makes sense.