Level 3: Land and Development Underwriting

Service Description

For raw or entitled land, a redevelopment site or a proposed ground-up project. The report underwrites the site at its intended use and backs into what the land supports. Scope - Site and entitlement summary: acreage, zoning, future land use, permitted uses, density or FAR, height, setbacks and lot coverage, flood zone, mapped wetlands and soils, water and sewer availability, frontage, access and AADT - By-right yield: buildable SF or unit count under current entitlements, and what a rezoning, land use amendment or replat would change - Land comps: closed land sales per acre and, for entitled sites, per buildable unit or per buildable SF. Acreage tracts are comped against sales of five acres and up - Rent comps for the proposed product: $/SF/yr NNN for retail, office and flex, or rent per unit and per SF for multifamily - Development budget: land, hard costs per SF, soft costs and contingency - Stabilized pro forma on the completed project, and stabilized value at a market exit cap - Untrended yield on cost and the spread to the exit cap - Residual land value: what the project can pay for the land at a target yield on cost, set against the asking price - Open items that gate the value: zoning verification letter, wetland delineation, survey, geotechnical and Phase I Fits Land acquisitions before contract or inside the inspection period, developers screening a site, and landowners weighing an as-is sale against entitling first or a ground lease. Send Address or parcel IDs, the proposed program (use, SF or unit count), and any survey, site plan, environmental or geotechnical work in hand.