LakeStar will work with you to define your real estate investment objectives and evaluate the risk to reward ratio associated with an identified property, and engage and report on the following areas of due diligence:
Achieving the highest and best use for a property requires a thorough understanding of the local market and working closely with elected officials and their staff to obtain annexation and zoning of property or a possible restructure of the existing zoning. Municipalities grow and mature at different times and for different reasons, with each community having its unique goals and aspirations. We will meet with local planning agencies and elected officials to ensure congruence between your real estate objectives and the local government’s vision for a subject property. Incongruence of vision can significantly impact a property’s value - for better or worse. We work hard to communicate how your proposals not only achieve a municipality’s goals, but also increase a community’s overall value by generating additional property and sales tax revenue.
Numerous factors influence the value of a property and its ability to generate additional value. For example, a site’s physical and environmental characteristics such as topography, floodplains, wetlands, and soil conditions can impact, delay, or altogether prevent future development approval of a proposed development. Additionally, the availability, capacity, and proximity of utilities in relation to a site’s location are significant considerations and each must then be quantified and managed. If easements are not in place for the extension of utilities, annexation contiguity, or roadway expansion, the purchase of a property should either be contingent upon obtaining these easements or appropriately priced for the risk associated with their absence.
Thorough research of availability of debt and equity including terms, cost, and sources is critical during due diligence. LakeStar maintains longstanding relationships with capital providers and will assist in finding the necessary capital sources to realize your real estate objective. In doing so, we will seek the optimal balance of debt and equity to maximize return on your equity while not overleveraging and absorbing unnecessary risk.