Undeveloped Properties Industry Terminology

The absorption rate for finished lots in this submarket is 60 per year, so our land takedown should be phased over three years.|We underwrote a slower absorption rate given rising interest rates.|County staff asked for our assumptions about absorption to justify the phased subdivision plan.

We need an access easement over the neighbor’s driveway to reach the rear parcel.|Title shows a recorded access easement running 30 feet along the western boundary.|Without a legal access easement, the lender will not close on the land loan.

The tract is currently under agricultural zoning, so density is limited to one unit per 10 acres.|We’ll need a rezoning from agricultural to residential before subdivision.|Agricultural zoning keeps carrying costs low via preferential tax assessments.

Order an ALTA/NSPS survey to verify boundaries, easements, and encroachments before closing.|The ALTA revealed a utility easement bisecting the buildable area.|Lenders typically require an ALTA/NSPS survey for raw land loans.

We’ll pursue annexation to access city utilities and higher densities.|Annexation will move the site into the municipal service area, enabling TIF.|The council’s annexation policy requires a concurrent development agreement.

After setbacks and wetlands buffers, our buildable area is only 18 acres.|The steep slopes reduce buildable area under the hillside ordinance.|We’ll optimize lot yield by maximizing the site’s buildable area.

Because it’s a brownfield, we budgeted for remediation and a Phase II ESA.|State brownfield credits improve the land residual.|Repositioning a brownfield near the CBD can create significant entitlement arbitrage.

The code requires a 50-foot buffer zone along the stream corridor.|We added a landscaped buffer zone to mitigate impacts to the neighboring farm.|Environmental buffers reduce net developable area but help with approvals.

We’ll use cluster development to preserve 40% open space while keeping unit count.|Cluster zoning lets us reduce lot sizes in exchange for conservation areas.|The planning board prefers cluster development near the greenway.

The comprehensive plan designates this corridor for mixed-use nodes.|Our rezoning must be consistent with the comprehensive plan’s future land use map.|Staff cited the comprehensive plan to oppose low-density sprawl.

Donating a conservation easement can generate tax benefits while preserving habitat.|The back 60 acres will be encumbered by a conservation easement in perpetuity.|We’ll offset impacts by purchasing credits from a conservation easement holder.

We need two contiguous parcels to reach the minimum PUD acreage.|The assemblage fails if we can’t acquire the contiguous corner lot.|Contiguous ownership helps with unified master planning.

DOT denied our curb cut permit due to spacing from the signalized intersection.|We’ll consolidate two curb cuts into one for access management.|Curb cut approval is a condition precedent in the PSA.

Our due diligence includes title, ALTA survey, Phase I ESA, and geotech borings.|We extended diligence to complete wetlands delineation and a traffic study.|The seller wants a nonrefundable deposit after due diligence.

A utility easement restricts building over the sewer line.|We’ll secure an easement for stormwater outfall across the neighbor’s land.|Title insurance excepts recorded easements from coverage.

Existing encumbrances include a deed restriction and a utility easement.|We must clear tax liens and other encumbrances prior to closing.|Encumbrances reduce land value by constraining use.

Our business plan is to obtain entitlements and sell to a vertical developer.|Entitlement risk includes rezoning, variances, and PUD approvals.|The entitlement timeline is 12–18 months depending on public hearings.

The EIA will evaluate traffic, noise, air, and biological impacts.|Without a compliant EIA, the agency won’t issue the 404 permit.|Public comments during the EIA scoping meeting were extensive.

The city’s exactions include road widenings and parkland dedication.|We negotiated lower exactions by phasing improvements with absorption.|Exactions materially impact the land residual valuation.

Portions of the site fall within the FEMA 100-year floodplain.|We’ll file a LOMR to revise the FEMA floodplain after channel improvements.|Floodplain constraints reduce net developable area.

The parcel has 600 feet of frontage on the arterial roadway.|Zoning requires a minimum frontage of 80 feet per lot.|More frontage improves access and visibility for outparcels.

Geotech borings revealed unsuitable soils requiring over-excavation.|We need a geotechnical report to design foundations and pavements.|Karst features identified in the geotech increase sitework costs.

This greenfield tract has no utilities—offsite extensions will be expensive.|Greenfield development faces fewer remediation risks than brownfields.|We’re land banking greenfields near the new bypass.

The appraisal’s HBU is suburban residential with a PUD overlay.|Changing the HBU via rezoning drives entitlement arbitrage.|We analyze HBU before setting the land offer price.

Impact fees for water, sewer, and roads total $18,000 per lot.|We modeled impact fee credits from the offsite trunk line we’ll construct.|Rising impact fees are suppressing lot absorption.

Site plan shows primary ingress/egress on Main Street with a right-in/right-out.|We need cross-access for secondary egress onto the collector road.|DOT limited our egress movements due to traffic conflicts.

We’re assembling five parcels to create a 40-acre development site.|Holdout risk is the biggest threat to the assemblage.|Assemblage premiums must be baked into the land pro forma.

The REIT is land banking tracts along the growth corridor.|Land banking allows us to control sites ahead of infrastructure expansion.|Carrying costs must be minimized when land banking raw acreage.

Using the land residual method, the justified land price is $85,000 per acre.|Higher exactions reduce the land residual.|We stress-tested the land residual against slower absorption.

There’s a mechanic’s lien from prior fence work on the property.|All liens must be released or insured over at closing.|Tax liens can derail a land sale if not addressed early.

We’ll pursue a lot line adjustment to square up the parcel for better yield.|A minor lot line adjustment avoids a full subdivision process.|The county requires new legal descriptions for the lot line adjustment.

We’ll purchase wetland credits from a mitigation bank to offset impacts.|Mitigation bank prices have doubled, impacting our sitework budget.|No nearby mitigation bank means on-site restoration may be required.

After constraints, the NDA is 24 acres out of 40 gross.|Yield analysis uses NDA to estimate lot count.|Reducing buffers increases NDA but may face public pushback.

NIMBY opposition could delay our rezoning hearings.|A robust community engagement plan can mitigate NIMBY concerns.|Expect NIMBY sentiment near the existing low-density neighborhoods.

We secured a 24-month option to purchase pending entitlements.|The option fee is credited to price if exercised.|Options de-risk land carry while we pursue zoning.

We’ll carve out two retail outparcels along the highway frontage.|Outparcel sales help fund the backbone infrastructure.|Fast-food users are competing for the corner outparcel.

The corridor overlay district mandates enhanced landscaping and signage.|An overlay can add design standards without changing base zoning.|We must comply with the flood overlay in addition to the PUD.

The Phase I ESA found a recognized environmental condition from a former orchard.|Without a clean Phase I ESA, the lender won’t proceed.|Phase I recommended limited soil sampling near the old tanks.

A PUD gives us flexibility on lot sizes and mixed uses.|We’ll negotiate a PUD guidebook outlining development standards.|The city prefers a PUD to ensure cohesive master planning.

We’ll submit the preliminary plat for the first 120 lots.|Final plat recording triggers utility tap fees and lot closings.|The plat shows new rights-of-way and easements.

Our land pro forma includes takedown timing and interest carry.|Sensitivity analysis in the pro forma tests absorption and fee scenarios.|The lender wants to review our infrastructure pro forma in detail.

Our proffers include parkland dedication and a turn lane.|The developer agreement phases exactions with recorded plats.|We negotiated impact fee credits within the proffer package.

The county requires 30 feet of additional ROW along the frontage.|We can’t place structures within the recorded ROW.|Dedication of ROW occurs at final plat.

Front setbacks are 25 feet; sides are 10 feet.|Setbacks plus easements constrain the buildable envelope.|We requested a minor setback variance for corner lots.

Perc tests passed, so lots can use individual septic systems.|Poor perc results mean we need larger lots or community sewer.|The health department witnessed the perc test last week.

Phase 1 subdivision creates 78 single-family lots.|Minor subdivision allows up to four lots administratively.|Subdivision approval is contingent on utility capacity letters.

We’ll obtain an owner’s title policy with survey coverage.|Title insurance will insure over the old unreleased deed of trust.|The lender requires a loan policy at closing.

We’ll purchase TDRs to increase allowable density on the receiving site.|Selling TDRs monetizes value while preserving the sending area.|The TDR program can shift growth away from rural zones.

The site sits outside the UGB, limiting near-term entitlements.|An expansion of the UGB could unlock our land bank.|UGB policy focuses infrastructure within designated areas.

The delineation identified 4.2 acres of jurisdictional wetlands.|USACE accepted our wetlands delineation map last month.|Wetlands buffers will reduce our net developable area.