In recent years, financial institutions and property owners have faced the possibility of becoming land developers. Plans devised in the good times fell short and stepping into the position of the developer or builder promises greater returns than a bulk sale.
Seldom do these parties have development expertise. The inherent complexity of partially finished improvements, financial security agreements, and permits and approvals (often on the verge of expiration) are usually beyond the expertise of banks and most property owners.
Case study: Bayview Woods
Arcadia’s Director of Infrastructure, Jim Weidner, has led a major single-family community in Cecil County, Maryland on behalf of a large regional bank. Arcadia advised the bank on contract negotiations with the builder, NVR, re-established relations with local conservation and public works authorities, and contracted and managed the remaining site improvements. We spearheaded the dedication of public roads from the bank’s special purpose entity to the Town. And since Ryan Homes sold 34 houses in 12 months, the bank not only achieved the best price for the lots but did not have to carry the lots very long.