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LAND ACQUISITION

Axis Point Developers remained active developing new premium residential gated communities during the recent recession. Utilizing minimal, and often not debt financing, this strategy has proven to be successful. While demand for premium lots did, in fact, drop significantly, the existing supply was absorbed, and the predicted lot shortage (under supply) has occurred. For this reason, we are seeking new land acquisition opportunities. Brokers, land sellers, investors,
and financial institutions are encouraged to submit tracts for review. If we choose not to acquire the tracts you submit, we may be able to refer you to others who might be interested in the tracts you submit to Axis Point. You can learn more about suitable tracks by going to Current Developments on this website. Below are site plans of current developments which are examples of the kinds of tracks which will be considered for acquisition.

CURRENT DEVELOPMENT SITE PLANS

 

DEVELOP FOR OUR ACCOUNT OR YOURS

We are pleased to consider developing land for builders and investors who prefer to not manage the development process. This is usually done on a fee plus a percent of the profits basis.

 

GENERAL LAND ACQUISITION CRITERIA

Land Price

We are seeking tracks which can be purchased at reasonable prices, approximately similar to pricing in 2005 and 2006.  Development land prices became over inflated shortly after that time and with increased cost of construction, and lower lot revenue associated with reduced demand and tighter builder margins, it is not workable for either the home builder or the Axis, the developer, to over pay for land.

Tract Size

The preferred tract size is approximately 30 to 70 acres. Why, because these tract can typically be sold out with two builders in one of two development phases. We will consider larger tracts in the 100 to 200 acre range depending on land purchase terms and requirements.

Entitlement and Feasibility

In all cases, the land will need to have access to utilities either in a MUD or municipality.  With normal land pricing, in virtually all cases the tract will need to either be in a MUD or be able to be annexed into a MUD.

Drainage is continuing to be an increasing problem.  In fact, obtaining a CLOMA and LOMR are more time consuming and expensive as more detailed hydrology work is now often required and there is increasing risks of late policy changes by government bodies with the potential of complicating feasibility.

The EPA together with the US Army Corps of Engineers are very much continuing to expand their reach to claim more and more land as jurisdictional thus requiring wetlands permits or rendering the land not developable.  With recent changes, Individual Wetlands Permits are even more expensive, far more time consuming, and less predictable than in the recent past.  Stated differently, mitigating an acre of wetlands cost one to two times more the typical land purchase price.

Moreover, there are increased requirements for endangered species and archeological surveys.

All of these entitlement problems must be resolved prior to closing on the land purchase as well as satisfaction of usual due diligence work such as zoning, tile, geotechnical and environmental surveys.

Location and Market

We wish to acquire tracts which are in the immediate path of growth or are considered to be in-fill locations.  Access to excellent schools, modern shopping, good transportation corridors, and expanding employment base are all important.  Our typical lot buyers are the top production builders, both regional and national.  They will only consider locations which have “high appeal” to home buyers and that drives our site selection.

Sites where the market is not yet ready either because of demand or because infrastructure is not available will not be considered.

We are not developing for custom home builders.

 

 

© 2015 Axis Point Developers, LLC
Contact Axis Point at JWatson@apdllc.net, 281-932-4143 Maintained by Yale Street Creative