Ch 11
Residential Land Uses
1
Outline
I. Types of Residential Development
II. The Real Estate Development Process
III. Millford Hills Case Study
IV. US Assets Group
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I. Types of Residential
Development
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single-family detached houses
single-family attached houses
 row houses/townhouses
 plexes
 patio or zero-lot-line houses
multifamily residences
(rentals, condos or coop)
 garden apartments (2-3 floors)
 mid-rise apartments (4-8 floors)
 high-rise apartments (> 8 floors)
manufactured homes
second homes (timeshare concept)
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II. The Real Estate Development
Process
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I. concept development
II. feasibility analysis
- legal analysis (zoning compliance)
- market analysis:
delineation of the market area
analysis of demand & supply factors:
 employment
 disposable income
 population
 household characteristics
 absorption rate
 competing projects
 other
- financial analysis
III. development of land & building or improvements
IV. marketing/selling
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III. Millford Hills Case Study

Real Estate Today Feature p. 236
Milford Hills Project involves the purchase of a piece of land
and a house for $
and the sale of
lots at
$30,000 each.
- What are some important observations from the financial
analysis?
1. Is this a good analysis?
2. When do cash inflows start?
3. What is the largest cumulative negative CF and when does
it occur?
4. What are 2 characteristics of the real estate development
industry?
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V. US Assets Group
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Developers vs. Builders
US Assets Group – Background Information
Projects:
-

Hunters Green (Tampa)
Vizcaya (LBK)
En Provence (LBK)
Beau Ciel (Sarasota)
Orchid Beach Club (Lido Key)
Founders Club (Sarasota)
Important Factors for Success
- Market knowledge and experience is very important
- Stay in your geographic area of expertise
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7
Actual and Projected Housing
Starts as of Q4 2011
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Ch 12
Commercial and
Industrial Land Uses
9
Outline
I.
II.
III.
IV.
V.
Shopping Centers
Office Buildings
Industrial Facilities
Lodging Facilities
Special-Use Properties
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I. Shopping Centers

Shopping Centers grew after the advent of which invention?
Types of Shopping Centers:
→ neighborhood shopping center

(30,000-100,000 SF leasable area, on 4-6 acres)
→ community shopping center
(discount or junior department store: 100,000300,000 SF leasable area, on 10-30 acres)
→ regional shopping center
(1-3 full-line department stores:
300,000-750,000 SF, on over 30 acres)
→ super-regional shopping center
(4 or more full-line department stores: 750,000-
1,000,000 SF)
→ other types of shopping centers
- factory outlet centers
- specialty shopping centers
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Shopping Center Development

Important factors in the feasibility
analysis:

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trade areas (primary and secondary)
market size
competitive survey
site location
tenant selection
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II. Office Buildings
Office buildings are categorized by:
→ quality and amenities (class A, B, C, D)
→ location
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central business districts (CBD)
secondary office nodes
office parks
→ single vs. multi-tenant buildings
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III. Industrial Facilities


Types of businesses:
- manufacturing
- warehousing
- distribution
- garage space
- research & development
Important Issue: Pollution
CERCLA (Comprehensive Environmental
Response Compensation & Liabilities Act of
1980)
Includes:


National list of polluted properties
Innocent landowner act
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IV. Lodging Facilities
Types of Lodging Facilities:
→ commercial/convention hotels
→ highway or airport hotels and motels
→ resort hotels
→ extended stay hotels
 Risk level of hotels
 Ownership of Marriott and Ritz Carlton
hotels

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V. Special-Use Properties
Examples:
→ hospitals
→ nursing homes
→ schools
→ marinas
→ power plants
→ sports complexes
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
Key variables for a market analysis of a baseball
stadium
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