All Forum Posts by: Corey Williams

There is a lot more to unpack here than just construction cost.  

Industrial sites can have clean dirt for sure but they can also have contaminated soils that can carry a high cost to remediate.  It could also be zoned industrial but maybe nothing has ever been built on it. 

What are the surrounding uses?  Does this one site make sense to rezone for residential. Is the whole area being redeveloped?  

You may have all of these answers already but most of my career has been researching potential development parcels for zoning, utilities, environmental concerns and feasibility so vague questions like this without much context get my wheels turning to help out and make sure you have all of your bases covered.

This is a really challenging question to answer and it’s not a one answer fits all.  You can permit and build on some wetlands and some you cannot.  Without writing a book to answer with all of the scenarios, you would be best served by talking to a wetland specialist in your area.  

I work for a developer and have never seen a one page purchase agreement. We do have a one page LOI or Letter of Intent. Contractually it isn't a legal document but it summarizes the terms of a potential deal. It is the equivalent of a handshake deal that locks you into the negotiations of the actual purchase agreement.

I'd press the EASY button on this one and connect with a local CRE Broker to help you out. I know agents and brokers don't like passing on clients or potential deals but you could partner and gain some valuable experience. Who knows, maybe you'll discover commercial real estate is a fit for you.

This quote from your post leads to a lot more questions than can be answered in a forum post.

"I recently onboarded a client who is looking to do a larger scale commercial deal, ideally NNN retail or industrial, not residential."

What does "looking to do a larger scale commercial deal" mean?  Do they want to buy an existing shopping center, or industrial building? Do they want to buy land and develop a ground up commercial center or industrial park? If they are buying an existing one, will it be a newer turn-key property or have some value-add potential?

Good Luck!

Thank you Chad Jarrah . Thank you Linval T. For the links. I'll be sure to check them out.

I joined BP in 2008 but it's been a long time since I've been committed to visiting the site, reading and commenting on posts. I'm looking to network close to home as a start. Contractors, wholesalers, lenders, developers, investors, etc... If you're on this site and you call Central Indiana home then we should connect. With over 20 years of experience in real estate I'd love to write a new chapter and I would like your help. Right now I'm getting reacquainted with this site and will be looking to define my goals and business plan over the next few weeks. In the meantime feel free to reach out.

Depending on how long ago he developed the lot you could check with the local Planning Department. If it was recently they will have a set of plans that he had to submit to get his permits. This won't be an "AS-BUILT" set of plans but at least they would show you where they were supposed to be built. Anything submitted to the city is public record and you can get copies of whatever you need.

This is just another option. Billy's comment was also a great option and you can even contact the sewer or water department because they would have had to approve the developer plans before he built it so they should know where they are.

Entitlements is essentially getting permission from the municipality to build what you want on a site with regards to use, density, building height, setbacks, traffic impacts and environmental issues. Each municipality has their own ordinance that defines the process to entitle you to build your project and most of them are different.

The quick answer is to locate a site then determine if it is a parcel in a city or county, then contact the Planning & Zoning Department that has jurisdiction and they can guide you through their process. Essentially this is my job. Our acquisitions department locates sites throughout the midwest and east coast and lets me know how many units they desire. Then I contact the Planning & Zoning Department, Building Department, Utility Companies, Highway Department, Board of Health, etc., basically any department that I can think of that would need to review our plan. Some municipalities are more user friendly than others. For instance some P&Z Depts. consider themselves a "one stop shop" and they have a nice neat little packet that explains the entire process to you. Others have poor communication between the different departments and you are own your own to obtain every reivew and approval you need.

My first question is always, what is the current zoning? Then, is multi-family allowed in the current zoning? If the property is zoned properly then great, move on. If not then you will need to follow the rezoning process. Usually a boundary survey and legal description are required, beyond that it depends on the municipalities requirements. Sometimes that's all you need, other times you need a detailed site plan and some elevations of buildings, depending on the size and scope of your project. Detailed plans are being required more and more. The reason is a developer used to be able to turn in a survey and say I would like to build apartments on this site and the city would say okay without knowing what they will look like or how tall they might be. Now days, neighbors and the adjacent public are becoming more outspoken about what gets built around them and the zoning process is the only time they get a chance to voice their opinion. So now developers have to make commitments about what they build, like, how many buildings/units, how much brick or stone, and these committments are then recorded as a requirement.

Even though all cities are different the rezoning process is probably the most consistant. Beyond zoning, it's a crap shoot as to the process and time frame required to obtain entitlements. Some cities can get you through in 6 months and others can take 2 years depending on how many agencies have to get involved.

I'm rambling a bit now and I know you were looking only for reference material which Jon pointed out the Urban Land Institute which is a great resource and the place you should start. After you poke around there a bit feel free to post more questions here. After all that's what this website is for and no better people to ask than those with experience.

A quick google search gave me the following link with some general information regarding well and septic systems. Every State and/or County Department of Health is a bit different in their regulations. I searched North Carolina which I assumed is where the lots are.

http://www.bae.ncsu.edu/programs/extension/publicat/wqwm/wm1.html

The best organization for retail strip centers and development of them is the International Council of Shopping Centers. They have local chapters that meet frequently to discuss trends and deals. This organization is where you will find retailers, attorneys, developers, contractors, engingeers, architects. anybody who is anybody, it seems, is a member of ICSC and you can find them at ICSC.org. That's where I would start. Your question demands a very detailed answer but if you had some specific questions I could do my best to help you out.

As far as the "aged" building situation goes it depends on the surroundings. Some "old" retail centers are still in a very active areas and can simply be given a facelift. Others have fallen apart with the area and it takes a community effort to bring them back. Each situation is different.

The following link is to a part of town that I drive through frequently and is a prime example of how to turn an area around. The housing was and is still holding its value but the retail had vacated to the "new" developments. This may be a little more ambitious that you had in mind but sometimes it takes this kind of effort to make something work. http://www.binford71.org/index.html.