A Recognized Asset Class
Real estate development, particularly residential land development, is widely recognized as a productive investment vehicle as institutional capital and private equity investment firms across North America have invested hundreds of millions in land and development over the past few years since 2011.
Although the amount invested is significant, it represents only a fraction of the total market potential given that the appetite for more land has been suppressed because the large institutions and private equity firms, do not have reliable access to a consistent flow or pipeline of well qualified or packaged opportunities that demonstrate transparent and profitable exit strategies.
The timing for this new venture is ideal as high net worth capital and institutional investors are aggressively pursuing strategically located raw land and development opportunities throughout the United States. As such the majority of America’s most active home builders who are acutely aware of the nascent housing market recovery are eager to partner with well capitalized developers that can deliver lots reliably in the right locations.
Suncrest Management believes that the current lull in the overall economic recovery, the relatively anemic housing recovery, the country’s consistent and predictable demographics, and the subsequent pent up housing demand creates an optimal opportunity for investment in multi-family and single family residential land development in select Suncrest Markets.