Updated about 7 years ago on . Most recent reply
Washington DC South - Land Project
Hi all, I have been on Bigger Pockets for a bit but this is my first time posting... My dad and I have an 1100 acre piece of land south of Washington DC that we already have zoned for a transit oriented development. We are not developers, just the land owners. We are trying to understand some creative joint venture/investment structures. Our project is zoned for over 20 million sqft of “live, work, play” mixed use development. Our goal is to raise between $5 to $20 million so that we can continue to value enhance and market the project. It has been next to impossible to put an accurate valuation on this project because of the size of the project and the fact that it could be a 15-20 year buildout. There are many factors that will affect the absorption and buildout of this project that can either slow down or speed up the time frames. As an example, if we have a large user step up and take a piece of the project, then depending on who the user is and the size of the user, this could speed up the buildout time period. So the question is, what are some creative deal structures where we could attract investors who have patient capital? The land is paid off and free and clear. We are trying to come up with an attractive investment for and investor but since we have no way of knowing how much the property is worth, how can we form a fair deal structure? Any creative ideas are welcome!