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Property ENHANCEMENT.
Holding tangible property assets that are not fully productive can be troublesome. This impact may affect entire markets or be property-specific, directly affecting only owners and tenants. Similarly, prospects remain uncertain when the unrealized potential is elusive in a world still confronted by economic volatility.
Whereas many markets demonstrate significant value appreciation, one current threat is the general lack of affordability. Will a proposed development plan deliver a project that overcomes this challenge, or will it price itself beyond the market? At today’s higher values, requiring ever-larger mortgage loans, the likelihood of higher interest rates will only exacerbate the adverse effect.
Active markets and rising values notwithstanding, not all property owners are in a position to respond if for no other reason than their expertise lies elsewhere – i.e., ‘not all who drive a car are mechanics!’ But, as limits on knowledge, skill sets and experience impede positive change, restricted access to funding is almost sure to do so, putting constraints on any venture.
In parallel, not all purchasers are welcome. Owners are regularly disappointed when an anticipated proposal does not adequately reflect the value they initially perceived. Not realizing the expected potential is more commonplace than one would think, as both property owners and buyers face the issue of being unable to convert. LandScope™, a registered trademark banner, conveyed the premise, emerging from within TruOak Development Services after Findex and Allwest exposed the market need. It dealt with a noticeable market void, addressing raw land requirements and building needs, particularly those requiring a new purpose. Several, having sat dormant for years, were transformed into worthwhile projects.
LandScope™ stood unrivalled in how it approached the marketplace — it added value to a property that it did not own! It was the same market position taken by Findex, its predecessor, and was also released from holding needless capital-intensive inventory and related liability. Each design initiative would reflect individual property characteristics (soil/structural engineering) and property-use designation. This, in turn, created a value-enhanced and sale-attracting development project. Where appropriate or already specified within a ‘proposed community plan’, LandScope™ would tailor its plan to an identifiable end-user market need, matching it to predetermined builder-developer interest. Projects included residential subdivisions, strata-townhouse and condominium properties (mid or high-rise), and commercial office/retail/hospitality buildings – all tailored to an identifiable use.
Every project was research-driven, both from a market and property analysis perspective, establishing the basis for the property development or re-purposed design proposition. The objective was to ‘unlock the mystery’, which often held an underperforming property from realizing its ‘highest & best’ value. The business gave the nod to common sense, first with its unique industry position, avoiding debt or any other ownership liability’, then as a needed resource in a seemingly ‘idea starved’ marketplace.
With Land4ge as Entrepreneurialize Opportunity Corp.’s real estate enhancement arm, the Company calls upon this same approach today, answering various similar challenges!
Here are some historical examples:
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A UNIQUE SOLUTION – TWO EXAMPLES
One:
Google Earth
Minimum setbacks that distanced the adjacent salmon spawning creek from any buildings precluded a typical subdivision layout – i.e., employing a back lane to access the individual lots.
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As a result this plot of land lay dormant for some time unable to secure the required project approvals.
Google Earth
Recalling what would have occurred back home, in 'Cariboo Country', when mountain creeks needed crossing, a practical solution quickly came to mind.
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This was to "drop" a set of two logs across the stream, each set to be covered with a wood deck. Repeating the design for each of the six proposed entry-ways, this 'street-side' bridge, solution eliminated the need for a back lane.
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As the images show, the project secured the necessary approvals!
Two:
Google Earth
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1000 Block West Sixth, Vancouver BC
Before being introduced to this high-profile site, (1000 Block West Sixth St, Vancouver, BC) several developers had weighed-in and passed on the project*.
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Their purchasing enthusiasm soon waned when discovering that this large site also held several large concrete structures.
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Seemingly too costly to demolish given the need to secure market viability, as well, the property remained underutilized for years.
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*An underutilized urban (commercial/industrial) property.
the Sixth Street Solution
Facing a 'demolition cost' of close to half the 'land value' prompted the question:
"When were these buildings built?"
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Answer: The 1920s – which prompted the response:
"Well then... these must be
'heritage buildings'!"
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After some debate concerning declaring this site as having ,'heritage status', and that that might impede City approvals – a concept plan was nevertheless submitted to the City's Planning Department (see rendering).
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As opposed to demolishing the problematic buildings, this mixed-use design instead incorporated the 4structures that previously thwarted development.
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Presented with the assertion that the project would not be viable without the requested 'Heritage Status', and therefore, remaining an 'eyesore', it soon secured all approvals.
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First, the plan eliminated the 'cost-prohibitive' demolition aspect of having to tear down the old, 'concrete & steel' buildings. It then also created additional value. This consisted of a 'heritage bonus,' added another 25,000 Sq. Ft., of 'buildable floor space' to the project.
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​Together, these elemental aspects, not only made the project viable, but lucrative as well. The positive result: a 'value-added sale'.
