Land Development
Land Development 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 development 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
