I’m currently looking at a land bank lot in Metro Atlanta and weighing different ways to approach it. It’s not a perfect lot, but it’s in a developing area with some potential. Curious how others would approach something like this; build, hold, or pass?
Happy to share more details if anyone has experience with similar deals.
Brooke, for me, it would depend almost entirely on the factors behind the "not perfect" description.
Before deciding whether to build, hold, or pass, I'd want to understand:
• Current zoning and highest/best use
• Utility availability and capacity
• Topography, drainage, and floodplain considerations
• Entitlement or variance requirements
• Comparable land and finished product values
• Estimated development timeline
We've seen plenty of lots that looked challenging at first become strong opportunities once the development path was clearly understood. Conversely, we've also seen "cheap" lots become expensive due to permitting, infrastructure, or carrying-cost surprises.
From a financing perspective, lenders also tend to look closely at entitlement status, infrastructure readiness, sponsor experience, and exit strategy when evaluating land and construction opportunities.
What specifically is making you hesitate on this parcel—zoning, utilities, access, topography, floodplain, or something else?
Brooke, for me, it would depend almost entirely on the factors behind the "not perfect" description.
Before deciding whether to build, hold, or pass, I'd want to understand:
• Current zoning and highest/best use
• Utility availability and capacity
• Topography, drainage, and floodplain considerations
• Entitlement or variance requirements
• Comparable land and finished product values
• Estimated development timeline
We've seen plenty of lots that looked challenging at first become strong opportunities once the development path was clearly understood. Conversely, we've also seen "cheap" lots become expensive due to permitting, infrastructure, or carrying-cost surprises.
From a financing perspective, lenders also tend to look closely at entitlement status, infrastructure readiness, sponsor experience, and exit strategy when evaluating land and construction opportunities.
What specifically is making you hesitate on this parcel—zoning, utilities, access, topography, floodplain, or something else?
Appreciate the thoughtful breakdown, Steve. Right now, the biggest question marks are around utilities and entitlement timeline, with a bit of uncertainty on development costs given the surrounding comps. Everything else looks workable on paper, but those two factors are what could really shift the feasibility.
I’m digging into those details further before making a call on whether it’s a true build opportunity or better left as a hold.