You remember the good ol' days, and by the good ol' days I mean the early days of the multifamily development cycle, when land was cheap, sites were abundant, and capital was flowing like the Niagara Falls. You could even build product without having to get $1.50/sf rents back then. Geese, those were great times.
Nowadays however, there doesn't seem to be much low hanging fruit. You want to build a beautiful multifamily product to enhance the community and be the envy of the development world, but you have to value engineer the veneer so that you don't have to charge $1.75 per sf in rents. You try to justify this when you know that the property built down the street in 2012 has a beautiful brick facade and larger unit sizes, and also rental rates at a 20% discount to your pro forma. Everything costs so much now: construction costs, capital, and especially land prices. That brokered deal you just bid on causes you a lot of stress. You wish you had a larger site and you wish you paid about $2 million less for it, but you know your pipeline is dwindling and beggars can't be choosers. You see everybody ramping up their acquisitions and asset management teams, and everything looks a little dark and gloomy at this point in the cycle.
The good thing is that Site Identify might be able to provide your firm with a little bit of sunshine to sustain your pipeline in these more difficult times. Site Identify's property assemblage function is unmatched and allows developers to search for properties with common adjacent owners. First off, Site Identify can allow you to pinpoint zoned sites, narrowing them down by acreage, improvement value, and total value. You can't get this detail from your local county office. If this doesn't pinpoint potential sites, the assemblage function will. Now, when you search for a site with a minimum of 3 acres, Site Identify will search for adjacent parcels with common owners. Three 1 acre sites that would have been missed in a search for three acre sites will now show up, outlined in red. After a few phone calls, what would otherwise have been overlooked could turn into an incredible off-market deal. The power of this search function is unprecedented in the industry.
The development cycle is winding down, and gone are the good ol' days. You might find that there just aren't many good sites left in a market, or you might find some hidden gems that would never have been uncovered without the help of Site Identify. Either way, now you know, and that is powerful knowledge to have. Happy hunting!
The official Site Identify blog
David Morin (co-founder)