Legacy Alliance’s multifamily team was one of the first firms in the U.S. to spot the cost:benefit trends moving away from acquisition/rehab model and on into new development.
With what seemed like a glut of inventory available for nearly seven years, the hot rental market has been tightening up likely candidates for purchase, and prices are going up as well making slim margins even thinner.
“We’ve been tracking this all the while, and finding the right deals for our investor partners, but we saw the signs pointing to the viability of new development as a strategy,” said Brad DeYoung.
“Fortunately, we’re a nimble development company, and we’re moving forward with fee-dev projects in pockets where land costs have been right, and growth planning is strong.”
While the company does solo development, Legacy Alliance’s partners also structured the firm as an ideal fee development partner.
“First, we built in a system of checks and balances based on our extensive work as both developers and owners’ reps during up and down markets,” Said Partner Chris Leavell. “Then with a strong market research and ‘scout’ team, we’ve identified niches where everything points to strong, steady growth.”
“We’ve all been through the bubbles,” added Partner Fred Hopkins. “But the difference is we prepare and research and map out next steps so there aren’t surprises in the process. Our clients, partners and lenders get the latest info, so they’re always in the loop.”
That’s not to say that property acquisition and rehab is dead and gone. In some markets it can still be the strongest strategy. But, in many of the Southwest markets where Legacy Alliance is active, the firm is now opening up opportunities for its clients.
If you would like to learn more about Legacy Alliances fee development expertise, contact us today.