Sooper CU hired Developco to determine the development possibilities for a 5.77 acre site that was zoned office and sell the property for the highest possible selling price.
Assignment Highlights
- Undertook a campaign that included a highest and best use study, architectural planning, civil planning, municipal investigation, senior housing market research, neighborhood meetings.
- Identified and interviewed senior housing developers who might have an interest in the site.
- Selected MacKenzie House for the acquisition and development of a 100+ unit (100,000 SF) assisted living project operated by Morningstar.
- Although the land was zoned for a future office building, Advisors quickly assessed that this was a poor future office site.
- Collaborated with two senior housing architects for ideas on the site’s possibility for multi-family housing.
- Determined, after considerable investigation, that the property’s Highest and Best Use was for senior housing. The initial market investigation suggested that the demographics were very strong and that there was no competition in the immediate trade area.
- Envisioned a senior housing project and completed the project definition, financial modeling, and proforma analysis.
Results
- Negotiated a price that far exceeded what value would have been as an office site.
- Client believed that the proposed senior housing project (assisted living with some alzheimer units) had little risk and therefore contributed all of his equity as a joint venture partner with the opportunity for future income and profit upon the project’s completed sale.
