LAND 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.
