In 2011, we assembled 30 SF homes & lots and entitled them for a MF project and sold to an institutional MF developer in 2013.
This was in an emerging area of #FortWorthTX called W 7th.
Here's what went down...
This was in an emerging area of #FortWorthTX called W 7th.
Here's what went down...
Over an 18 month period, we achieved some major entitlements including:
1. Zoning
2. Re-platting
3. Removing a public road out of the grid
4. Allowing for a bridge to cross a major city waterline easement so parking garage could attach to units.
1. Zoning
2. Re-platting
3. Removing a public road out of the grid
4. Allowing for a bridge to cross a major city waterline easement so parking garage could attach to units.
We worked through these entitlements with the developer and upon completion, they closed. The dirt was "shovel ready" meaning they could go pull a permit and get started.
This is 2014.
This is 2014.
Almost always, institutional developers must buy "shovel ready" dirt.
B/c of their capital structure they don't have the luxury of speculating on unentitled land, so there is huge upside potential for the investor willing to take on the entitlement risk.
B/c of their capital structure they don't have the luxury of speculating on unentitled land, so there is huge upside potential for the investor willing to take on the entitlement risk.
Watch how the neighborhood developed out in the years that followed.
You'll notice a lot of new townhomes and smaller MF projects going up.
This is 2015.
You'll notice a lot of new townhomes and smaller MF projects going up.
This is 2015.
Here we are in 2016-2019.
When entitling property, especially in an emerging area, you're usually in "stealth" mode for months if not years, giving a window of opportunity to acquire surrounding properties before "the cat is out of the bag" on the transformational project that's coming.
While huge value is created in the initial assemblage, there is plenty of value to capture in the years ahead with surrounding properties.
It takes vision and a bet on the future, but the upside can be tremendous.
Not only financially, but for the entire community.
It takes vision and a bet on the future, but the upside can be tremendous.
Not only financially, but for the entire community.
Our downside, if we couldn't achieve the proper entitlements, was a much less dense townhome development, which our initial land basis could support.
The initial tax base for the city in this area was under $25M. Almost 10 years later, that number is closer to $200M.
The initial tax base for the city in this area was under $25M. Almost 10 years later, that number is closer to $200M.
What once looked like this, turned into this. Pretty cool.
And that my friends, is the story of an infill land entitlement project we did in Fort Worth, TX!
And that my friends, is the story of an infill land entitlement project we did in Fort Worth, TX!
• • •
Missing some Tweet in this thread? You can try to
force a refresh
