In October of 2008 I wrote a white paper called, Grave Dancing for Fun & Profit in the Financial Apocalypse of 2008 and Beyond . One of my predictions was The Death of Land calling land:
“… the ultimate four-letter word. It is impolite to mention L-A-N-D in polite company because it has no cash flow and for the purpose of this Report has no Value unless it is a raw material used to create a property with an income stream. At the October 2008 Crittenden Commercial Real Estate Finance conference in Orlando, FL the consensus of lenders was that land had zero value and that site work improvements only added value for half the original cost.”
I was too optimistic… during 2009 & 2010 land plunged to values between 5-20% of the previous highs.
Since the start of 2011 a base has been building. Developers are again considering the purchase of land and entrepreneurial investors are emerging to fund construction and development projects. We’re focused on the following niches:
– seeking build to suit opportunities for credit tenants (retail, office, industrial, warehouse, corporate/student housing, etc.)
– seeking sites to construct rental apartments (market rate and LIHTC properties)
– seeking residential subdivisions (fully improved, partially improved, entitled blanks & virgin sites) from 40-4,000+ lots
If you are scooping up properties for your own account and only need money (debt or equity) to push it over the goal line… we have relationships with check writers ready to deploy capital. If you have a compelling site that needs capital and a development team… we have that, too.
Looking forward to talking to you soon about my new favorite four-letter word, LAND!
TIME (another four-letter word) to double down!