What is a real estate Developer?

A real estate developer is an individual or organization that acquires real estate with the intention of transforming it or increasing its value in many ways.  OakGrove Development is always seeking to acquire undervalued real estate assets in great locations with historic value.  A development project might not always be a vacant piece of land or a vacant dilapidated building.  We have acquired buildings that were fully occupied but had some aspects that were missing in reaching highest, best use and value.  Such as buildings with low rents, high expenses, or a less than optimal tenant mix.  So what does is take to be a successful developer?

A successful developer possesses the following qualities:

• A deep understanding of the leasing markets in which they are pursing development.  If they are going to bring a vacant building back to life or transform it into a higher and better use, it is crucial to understand how the end user will value their space.  This knowledge is gained by studying comparable properties in relevant location and actually familiarizing themselves with those products.  It's one thing to understand market data but it requires a hands on approach to term that data into actionable intelligence.  At OakGrove Development, we utilize software systems like the Multiple Listing Service, CoStar and Loopnet to help us with data.  Not only that, we spend considerable amount of time walking properties, networking with brokers and appraisers.

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• Successful development requires a rich understanding of how banks, lending institutions and investors analyze; underwrite property investments.  A developer might have several funding sources involved in a project.  Those funding sources may be investment partner equity, mezzanine debt, construction financing, historic tax credits, brownfield tax credits, economic development agency loans, grants, etc.  Because development involves a tremendous amount of up front capital, it is mission critical as to how a bank is going to look at your project, how an investor is going to look at our project and how a real estate broker will view it.  The reason for this is simple: knowing your exit strategy and financial stakeholders exit strategy.  How are you going to pay your investor back?  How are you going to pay your bank back?  At OakGrove development, we utilize our collective real estate experience of almost 40 years to not only bring the highest and best value to our projects but to also de-risk those projects through our conservative and exhaustive underwriting.

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• Successful development requires relationships with best in breed third parties.  There are many experts, consultants and professionals who play a pivotal role in any project: attorneys, real estate brokers, bankers, architects, accountants, government agencies, environmental consultants, general contractors, etc.  Relationships with the right team members take years to form into the powerful bonds that result in development magic.  Relationships over transactions is a core value in our company.  Because when you find someone who shares your values, has honesty and integrity, who goes above and beyond... you stick by them.  Our relationships are our biggest asset.

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