Case Study

Background:
A major real estate developer held 200 acres of office-zoned property in an infill location near a major mall that languished during the slowdown of 2000-2003. The considerable carry costs on a property that had been purchased several years prior were creating a burden for the developer. Placing the land into production in an accelerated fashion was essential to maximizing the parcel’s profit potential. The conclusion was to convert the suburban office park to a mixed use development.

• Prepare a revised master plan and financial feasibility of the parcel to include office, retail, and residential uses in a mix that will maximize profit potential to exceed earlier return expectations
• Apply for the re-zoning of the parcel and proceed with the public approval process to modify the acceptable uses to include retail and residential.
• Select partners or sell the residential and retail segments, retaining the land most suited for office development.

• Successfully re-planned the site to incorporate single family and multi-family uses in addition to suburban office. Ancillary retail was incorporated as a link between the office and residential-designated areas.
• Completed a six-month re-zoning process through the City, which included public hearings and meetings with adjacent property owners. The final plan incorporated adjacent owner thoughts on the specific location for single and multi-family uses. The re-zoning application was unanimously approved by City Council
• Sold nearly 50% of the property to a residential developer, which increased the overall return on investment and generated cash proceeds that were re-invested well ahead of the proforma timeframe.
• Executed a final plan that permitted development of multiple uses at the same time, leading to enhanced benefits to the community by 1) modifying office use to high-end residential development adjacent to existing single family housing and 2) accelerating City and County receipt of higher ad valorem taxes.