Current Real Estate Market Requires Creativity
Land prices have doubled, and in some cases, tripled, in recent years. Couple that with construction costs and impact fees continuing to rise. As market conditions continue to make it harder and harder to get development projects to pencil and move forward to ground break, we’ve continued to further our mission of creating meaningful places in our communities.
Our strategy for navigating the current market has been twofold:
– Engage construction early
– Partner with public entities
Engaging early with our strategic partner, Brinkman Construction, allows us to solidify our budget and manage to that number. It gives plenty of time for design progression and value engineering ideas to be discovered.
Another important factor that’s driving our current portfolio is partnering with municipalities, Urban Renewal Authorities, and Downtown Development Authorities to execute on community-driven projects. We have several large projects either completing, currently under construction or in the pipeline that have relied heavily on public support to move forward. The Exchange and Portico in Fort Collins, The Foundry in Loveland, and the Boardwalk Backlot Development in downtown Windsor.
At The Exchange, the City of Fort Collins and Downtown Development Authority invested in the project to address outdated and unusable infrastructure including the replacement of crumbling clay utility lines, updating sidewalks within rights-of-way and adding an irrigation system.
To support The Foundry project, the City of Loveland provided land for the project, waivers of use-tax and development fees, and the investment of $17.6 million in public improvements including the construction of a public parking garage.
Beyond the investments from public partners, their buy-in has been invaluable. We’ve been able to align the vision of these community-centered projects with the overall vision of the municipalities to ensure we’re building meaningful places while also catalyzing economic growth. Everyone wins with this model – local businesses, community members, municipalities, and developers searching for success late in the market cycle.