Lot Takedown Agreement

The negotiated price per lot can be set for the duration of the contract, degenerate during the agreement, or even be lower in the initial phase, and then higher to benefit from a price increase. DEALMAKERS: Atlantic Co. will purchase land identified by a developer, who will provide the necessary infrastructure and resell the finished land to the developer under a flexible sales contract. “Before, everyone was a vertical builder. They did it all: they bought the land, got the permissions, put in place the improvements, and did the construction and sale,” says Grebow, who founded The Atlantic Co. (TAC) in 1995. That has never happened, and I do not expect it to happen; The land allowed is too valuable,” he says. But our option agreements are not based on a certain performance, which allows project owners to unsubscribe. It leaves us a precious piece of soil that is approved and improved. Perrin also said that Greencrossing`s Landbank program not only helps reduce the risk of project ownership when acquiring land, but also provides additional balance sheet protection for project owners during the development process. Under typical terms of a transaction, the developer would enter into not only a lot option contract with the company, but also a construction contract in which Perrin`s company would mandate the contractor as contractor to complete the development of the lots and reimburse the company for its development costs.

The net effect is that the owner holds the horizontal cost of the developments as well as the cost of pre-purchasing its books, Perrin said. Land Banking allows project owners to retain land earlier in the development cycle without having to advance large sums of capital for the acquisition or development of the country. A typical activity of the Regional Bank is structured in such a way that a partner of the Regional Bank buys a property on behalf of a construction partner and receives a count from the client to ensure the purchase. The contracting authority then accepts a drawing schedule in which it would purchase at regular intervals a certain number of lots for the value of the country, plus some fees until the agreement is paid. If the contracting authority has abandoned the drawing options, the prize shall be cancelled. Once the rights are in place, the company acquires the land, implements the improvements – “the roads, the pipes, everything,” Grebow says – and then sells the land to the owner, either on a lump sum or as part of an agreed but extremely flexible operating plan. The nine-year-old company will purchase the land identified by the client, plan the entire infrastructure and sell the finished land to the client under a flexible sales contract based entirely on the delivery plan provided by the client. To date, Perrin said no agreement had been signed. However, he said the company, which has Private Equity capital from the East Coast, is poised to close four or five $5 million to $15 million regional banking transactions over the next 12 months. “We try to be as flexible as possible so we can offer a service,” says Grebow. And apparently, the owners think it`s a good service. “The concept of our off-balance sheet business is not complicated,” says Grebow.

“The Atlantic Co. delivers finished land to project owners. We buy land of considerable size identified by the owners, but who want to buy as finished land; We use the improvements and sell the land to the client. “Between these types of deals and our own deals, when and where we could, I realized it was a good deal,” Grebow says. .

This article was written by: SignEx