Development Land Assemblage

Development Land Assemblage

Diaz Commercial launches its Land Assemblage Group with an eye toward developing greenfield and greyfield sites. Land Assemblage is the process of packaging two or more adjacent properties to create a larger parcel with higher and better use, which usually results in a higher market value. As a result, there is a financial benefit to acquiring and selling property as part of a land assemblage.

Buyer Benefits (The Developer)

Assembling land for development is a tedious task that requires patience, strong communication skills, and the ability to bring multiple property owners together and agree on prices and terms. However, the profit potential can be exponential if the assembled land provides an opportunity for a project that would otherwise not be possible on a smaller footprint. In a land assemblage transaction, the developer will almost always have the advantage because they tend to be better versed in understanding the real estate market and construction costs and have the experience to structure deals.

Seller Benefits (The Adjacent Property Owners)

Just as developers require mental agility to arrange land assemblages for development, most property owners also find it challenging to understand their combined property value and what is ultimately a fair sales price while leaving room for the developer to profit. However, it is worth it for neighboring property owners to invest the time and effort in considering the sale of their properties as part of a land assemblage because serious real estate developers understand the value of assembling well-located land for development and may be inclined to pay a premium for each participating property if purchased together.

The Key to Land Assemblage Success

Preparation, education, and transparency are the prime components to achieving success in land assemblage transactions. Both the developer and property owners must clearly understand their purpose for engaging in a land assemblage transaction and prepare accordingly. For the real estate developer, this means understanding the potential uses for the assembled land and whether it is economically feasible to achieve their intended financial returns. The consortium of adjacent property sellers needs education on the value of selling together as a group rather than individually. Ultimately, transparent communication will be the transaction driver, with both the buyer and seller being upfront about their intended results from the beginning, as is required in any real estate transaction.

The Value of a Land Assemblage Broker

Lastly, having an experience land assemblage broker provides the added benefit of unifying the property sellers and bridging the communication with the potential developers. Connect with our firm and learn more about our value contribution to the land assemblage process.

Comments are closed