Much of the Valley’s best located developable residential land was acquired at vastly discounted prices by sophisticated, distressed-asset investors during the market crash of ’07-’09.
These land investors typically are passive, eschewing active development to maintain capital gain treatment. However, they are keenly aware of the profit potential of converting their land into finished lots. The Fund will provide these landowners a financing vehicle and structure affording capital gains treatment on sale of finished lots.
The development risk to the land investor is minimized with a purchase and sale agreement in place with a homebuilder, providing an ideal solution for the land investor.
- Provides the capital necessary to develop lots while preserving the capital gain status of assets purchased during the downturn.