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Land differentiates real estate from alternative
investments as every site is unique. In addition to
its finite supply, land is impacted by macro and micro
market economic factors, location, physical conditions,
accessibility, visibility, and governmental regulations and
incentives. As a non-earning asset in cyclical
business, land is a risky asset. However, buying
land opportunistically with value enhancement through
proper planning and securing entitlements can be very
profitable and lead to controlling significant vertical
investments.
Janko Group's philosophy toward land investment is to:
- Buy land in the path of growth with preference on
"in fill" locations
- Add value through planning and/or entitlement
- Seek government incentives
- Finance with lower leverage, longer maturities and
rate protection
- Have equity partners who have the ability to be more
patient
- Evaluate the option to develop vertically with build-to-suits as well as on speculative construction
- Maximize favorable tax treatment through capital
gains and 1031 exchanges
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