Your Name (required)

Your Email (required)

Your Message

 

Development Site Monetization

WYE Realty Advisors > Services > Development Site Monetization

This service includes:

  • Land Sales
  • Comprehensive Land Use & Yield Analysis
  • “Zoned/Approved/Improved”, “Unapproved/Unimproved”, or “Subject To”
  • Joint Venture Land Contributions

Wye Realty Advisors understands the land use process and the supply/demand characteristics of local markets which, in turn, drive approvals and land values. Additionally, the firm maintains contact with a numerous investors, both private and institutional, with knowledge and capability in obtaining land use approvals.

In many cases, we are able to merge the “horizontal” land development entity and the “vertical” construction entity, or to source and pair the separate functions, thereby accomplishing a single source and seamless land transaction. All transactions are structured to allocate risks (approvals, market, and construction) and to yield appropriate risk adjusted reward for the participating parties.

Case Study

High Hook Farms

Vance Neck Rd, Middletown, DE

Services Provided:

  • Development Site Sale
  • Residential Land Development

Project Outline:
Wye Realty Advisors represented High Hook Farms, LLC in the development, marketing, sale, and execution of “approved, improved” residential building lots in High Hook Farms, to Ryan Homes/NVR. The 387 lot community in Middletown, DE included multiple housing/lot types, and had a “workforce housing” component with on-site vs. transfer to off-site alternatives which Wye was instrumental in executing for the developer/seller.

Wye Realty engaged multiple national, regional, and local homebuilders in marketing the lots within the community to get “best execution” for the developer/seller, structuring and pricing the deal during the midst of the real estate recession of 2009 – 2012. Similarly, Wye advised the client/seller on a pricing structure which allowed the contract to cover all lots in the community with a single contract buyer, while maintaining pricing flexibility/leverage on the later phases of the job to wait out the recession and price into a stronger market.

As part of its service, Wye met with New Castle County and the successful homebuilder/buyer to negotiate the Workforce Housing component of the project, including analysis of on-site vs. off-site options, as it affected the project pro-forma and projected pace of home sales.

Given the multi-phased project and extended year absorption, the developer/seller required Wye Realty’s continued involvement in the project and coordination of the homebuilder – developer relationship throughout the project timeline, including negotiations of pricing & terms of the later phases of the development.

Value Added:
Wye Realty Advisors performed multiple functions for the developer/seller in the marketing, sale, structuring & pricing of a major land development project, effectively extending the developer’s organizational capacity and capabilities.

Leveraging its relationships within the homebuilder community, Wye identified and secured a strong counterparty land buyer/homebuilder to deliver into the soft recessionary climate. At the same time, Wye structured the transaction to allow the developer/seller to participate in future upside via lot price escalations in an improving economy of the project’s life cycle.

Case Study

Chesapeake Ridge Apartments

Northeast, MD

Services Provided:

  • Development Site Sale
  • Acquisitions

Project Outline:
Wye Realty Advisors represented Wood Partners in the acquisition of 20+ acres in Northeast, Maryland, for the development of a 264-unit rental apartment community, with related amenities, including clubhouse and pool. The land purchase agreement was executed “subject to” the receipt of pending land use approvals and building permits and pending completion of certain offsite infrastructure improvements. Closing was completed on an “approved, un-improved” basis. The transaction was structured with the seller’s retention of a minority stake in the to-be-developed apartment complex and with a seller affiliated entity being retained as the site work contractor for the project development.

Value Added:
Wye Realty sourced the site and identified the potential investor, Wood Partners, based upon the project’s location, leveraging off of the property’s proximity to the Federal Government’s Aberdeen Proving Ground facility, a Base Realignment & Closing (BRAC) expansion site.

Additionally, Wye’s principals were instrumental in the documentation of the transaction and the structuring of the parties’ respective pre-settlement responsibilities in i) municipal approvals, ii) off-site improvements, and iii) governmental bonding. Finally, Wye facilitated coordination between the seller and the investor to complete the approvals, primarily BOCA code compliance and building permitting, on which the closing was conditioned.

Services

Acquisitions Advisory

Wye Realty Advisors understands the multiple roles in the commercial real estate process. Accordingly, we tailor our services to the client’s needs, including acquisitions advisory, effectively “buy side” representation.

Learn More

Mortgage Finance

In mortgage finance, Wye Realty’s principals have relationships with institutional lenders, securitized originators, and local banking institutions to offer the greatest flexibility in addressing a client’s borrowing needs.

Learn More

Investment Sales

Wye Realty Advisors’ professionals maintain relationships with a large contingent of owners and equity investors, including institutions, REITs, developers, and private real estate owners, as well as high net worth individuals.

Learn More