Land Development
Our land development strategy involves acquiring land that has untapped development potential
In the current interest rates environment, we focus on land sites that have existing cash-flowing asset with a value-add potential. We call it a “Covered Land Play” that allows us to work on new entitlements for the site while benefitting from positive cashflow on the property to (a) cover any carry costs and (b) get a market yield on the existing asset. Unlevered acquisition protects us in case of an economy downturn.
The process of land development involves:
Step IDue diligence, Feasibility study, economic feasibility |
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Step IAcquisition |
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Step IIIIn parallel: value-add of existing property and entitlement process, complying with zoning codes |
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Step IVMarketing the entitled property. As an alternative we can exit form this project by completing ground-up construction by ourselves. |
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Preliminary Site Plan Approval for 15 story 73 units condo building and 5,000 sf of retail space
Land Development Investment Strategy was to acquire the existing office building with attractive cash flow and while performing some value-add procedures to obtain the entitlements for a bigger development project.
Preliminary approval has been received for a 15-story, 73-unit condominium building and 5,000 square feet of retail space on an adjacent site. Currently this building is under contract for sale at $15mm that provides around 4.0x on invested equity for 2.5 years. (The attached images show the business center and renderings of potential construction).
Case study #1
2881 E Oakland Park Blvd, Preliminary Site Plan Approval for 15 story 73 units condo building and 5,000 sf of retail space
Land Development Investment Strategy was to acquire the existing office building with attractive cash flow and while performing some value-add procedures to obtain the entitlements for a bigger development project.
Preliminary approval has been received for a 15-story, 73-unit condominium building and 5,000 square feet of retail space on an adjacent site. Currently this building is under contract for sale at $15mm that provides around 4.0x on invested equity for 2.5 years. (The attached images show the business center and renderings of potential construction).
Land Development Case Study - 2850 NE 32 Street, Fort Lauderdale. We acquired this site in 2021 as a bigger acquisition package. During 2 years we obtained entitlements to build 8 luxury townhomes and sold it to our ground-up development vehicle in 2023. We achieved around 2.6x on equity invested that translated to 62% IRR for a 2-year investment.
Case study #2
Land Development Case Study - 2850 NE 32 Street, Fort Lauderdale. We acquired this site in 2021 as a bigger acquisition package. During 2 years we obtained entitlements to build 8 luxury townhomes and sold it to our ground-up development vehicle in 2023. We achieved around 2.6x on equity invested that translated to 62% IRR for a 2-year investment.
Land Development Case Study - 2850 NE 32 Street, Fort Lauderdale. We acquired this site in 2021 as a bigger acquisition package. During 2 years we obtained entitlements to build 8 luxury townhomes and sold it to our ground-up development vehicle in 2023. We achieved around 2.6x on equity invested that translated to 62% IRR for a 2-year investment.