SPACE, Land & Redevelopment
THE NOMA APPROACH TO Brokerage and Predevelopment
Most brokers will simply look at comparable sales in the market place to justify a land value, put up a sign, some snazzy marketing and hope to get to closing. But that is not going to yield the best returns to the owners and is a passive approach to getting a redevelopment that is great for a community. A better strategy is the NOMA approach; at NOMA we look at land value from a developer’s point of view—land value is mostly function of how much density can fit on a site. Our job is do everything we can to identify and lessen the risks of developing a site to realize that density. We then do a full development analysis of a site, pushing the opportunities of potential development, and THEN we back into a land price. This approach, though more time consuming and a bit more costly in the front end, undoubtedly, maximizes the value to the owner.
Our multistep approach to brokering property
Why are you selling?
Is it a quick close to liquidate a liability, is it to get the most money out, is it more important to have money over a long time period? Perhaps it’s leaving legacy to the community or maybe you want play a part in the development. We also want to help you look at tax advantages of various economic partnerships. Can you help facilitate financing for a developer by offering your land as equity to get better terms and thus bettering your bottom line? Getting your goals on the table is paramount.
Circle of Risks
We then use the Circle of Risks, created by Peter Allen at the University of Michigan, used in hundreds of developments around the state, as a template for identifying and eliminating risk of developing a site.
We analyze the most important strengths of the site: these are the Powers Of Ten and provided to potential buyers in the marketing package.
redevelopment & placemaking best practices
We look at redevelopment & placemaking best practices (i.e. Urban Land Institute), pulling from economically and environmentally sustainable developments from around the world and provide metrics to potential buyers on those “sister developments”.
Usually with the help of civil engineers and local architects we develop massing studies based on the underlying zoning and codes, paying special attention to variances and opportunities to densify the site and increase opportunities for placemaking. At this point also we might order an updated survey and do a Phase 1 environmental study. Again, we want to lessen risks for you, the owner.
As part of our services we create various development proformas unique for your site based on those massing studies, using the most recent market data for the various variables.
Through these exercises we come out with a tight range of land values, predicated on various levels and types of redevelopment of your site.
Pertinent Development Information
All of the information we create goes into a “Developer’s Portal” we create in NOMAres.com/developmentname or its own unique domain. This will be a real time repository of all information pertinent to development of the site. We make sure all buyers have the same and complete information. All questions are submitted and answered through the site, not unlike other online purchases.
The Finishing Touches
Of course we use site signs and digital marketing on various real estate development search engines with the architectural renderings illustrating the potential of redevelopment but we also we hand pick local and national developers we think would be perfect to develop the site. We will send them the website and follow up with direct contact to the decision makers of the firm letting them know of the opportunity and what we can do to make them excited about partnering.
We hope this approach leads to more than a few interested parties. But our job is not done. We vet the buyers; we want to make sure they can close. We want to get into their heads and hearts too: what are their goals?
We create a purchase agreement and/or development agreement that satisfies both parties, however our job is to look out for and protect you, our client.
We push to get to closing! At closing, our hourly fees are reimbursed back to you and we get paid our commission.
But even after closing, we might stick around at your behest if you need us for leasing and management opportunities!
Our fees are also negotiated depending on the project. Let’s have lunch together and see if we would be a good fit for you.