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Projects/Transactions
Residential Land Investment Program
Milestone Realty Services, Inc. has established
a Residential Land Investment Program to provide Investors attractive
rates of return based on opportunities presented by trends in the
Southeast Michigan residential land market and the capital needs
among the market’s
homebuilders.
New residential construction continues at near record pace in southeastern
Michigan:
- SEMCOG, the Southeast Michigan Council
of Governments, reported an eight percent increase over the prior
year in new residential construction with 23,413 housing units
permitted in 2003 for the seven counties comprising SEMCOG.
- According
to the U.S. Census Bureau, more homes were built in Michigan
between 2000 and 2003 than in any other midwestern state.
Michigan’s
149,204 new housing units between April 1, 2000 and July
1, 2003 ranked ninth in the nation.
- The Detroit Free Press reports
that during the same period, there were 17,634 new homes
in Oakland County, 17,547 in Macomb County, and of the 5,140
new homes in Wayne County, 67% were built within the last year.
Milestone’s Residential Land Investment
Program encompasses investing capital in a series of lot banking
transactions to acquire land parcels and finance infrastructure
development for fully entitled residential land. The investments
are structured primarily as mortgages, either as Participating
First Mortgages and/or Participating Second Mortgages.
Milestone’s Residential Land Investment Program is distinguished
by the following:
- The value of entitled residential
land is expected to increase as the region’s
economic and demographic trends support continued demand for new
housing while an increasingly restrictive political and regulatory
environment and infrastructure shortages present supply constraints;
- Well-capitalized
residential land investments fill a capital market void
and fulfill a need among the market’s homebuilders;
- Residential land
investments provide attractive investment returns. Acquiring
entitled land eliminates the most significant components
of development risk and Milestone’s
Residential Land Investment Program structure
provides a pre-determined exit strategy.
Milestone’s experienced real estate advisory
and investment professionals have an in-depth understanding of residential
land markets and are uniquely positioned to implement this investment
strategy as a result of established relationships with leading
homebuilders and land developers.
For more detailed information, including Model Transactions
and Investment Structure Summaries, contact Martin West at
248-591-7105 ext. 1001; mwest@milestonerealtyservices.com. |
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