The Land Baking Project Process Explained
Connor Investment Real Estate believes that Land Banking is an investment process that should be built on partnerships, incorporate due diligence, and can generate an advantageous project for everyone involved.
Landing banking partnerships are created to serve as an alternative to traditional equity investment or mezzanine debt for residential developers targeting new, expanding, and recapitalized residential and commercial development or master planned communities.
Connor Investment Real Estate (CIRE) will partner with a developer to purchase an undeveloped parcel of land with an agreement and obligation that the land will be developed in phases as a planned community. The land purchase jumpstarts development for the developer by financing future phases for development. The developer is able to immediately begin the initial phase of a multi-phase project and capitalize on efficiencies and economies of scale that result from larger master planned communities.
“CIRE focuses on land investments that need capital infusion to support high-quality residential and commercial development,” said Paul Connor, Principal, and Founder of Connor Investment Real Estate. “Every investment acquisition goes through a thorough review of due diligence that includes our team of engineers, appraisers, lawyers, and environmental experts.”
As the developer makes soft-cost improvements in preparation for future development such as civil engineering, municipal utility districts, entitlements, and amenities planning, value is added to the property owned by CIRE. Within one to five years, investment tracts are mature enough for development and are located in the path of growth. Investors of CIRE profit on the Land Bank agreement through current interest and/or improved value at the point of sale of each phase to the developer with the gains typically realized in a tax-advantageous structure.
Proven developers partner with CIRE to provide nontraditional financing options. Investors of CIRE trust the companies due diligence and track record for building value. Commercial bankers appreciate the pipeline smaller residential developments latter phases of property development often produce. Land Banking generates winning relationships all around.
Want to learn more? Download the Dynamics of Land Banking Presentation below.