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Dallas Garland Limited Partnership (1983-1984)
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The following case study illustrates how a land parcel's value can be improved by obtaining full entitlement and a Final Map, thus bringing the property to a construction-ready state and immediately marketable. The Myers Group actively began researching the Dallas marketplace in 1982. In early 1983, Chase Econometrics declared Dallas, with its population of close to one million, the fourth fastest growing metropolitan area in the United States. Dallas' influence caused Garland's population to increase by 70% in the previous decade to 145,000 people. Garland's population was projected to double to 290,000 within the next 10 years.
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Garland avoided becoming a "bedroom community", by attracting its own industries, which employed 17,000 workers. In addition, it had
more white-collar employees than Dallas
itself. One hundred families
a week were moving to Garland, attracted
in part by low taxes and excellent
schools and recreational amenities.
In August 1983, after following TMG's customary research and investigation procedures, a 17-acre parcel located four miles north of Garland's business district was purchased. The property was strategically
located along State Highway 78, with
frontage on intersecting Crist Road.
During the holding period, TMG ordered a boundary survey of the property and utilized its in-house engineering team to create a concept plan, (at right), to support a successful application for rezoning.
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Through efforts of The Myers Group, the legal development density of the property was nearly doubled. The parcel was converted to a higher and better use capable of generating greater income. The land was then worth considerably more to a developer. In addition, the land had become construction-ready and thus ready for immediate development.
After only 16 months, the Dallas Garland
partnership's property was sold to
a developer who built a 113,000 sq.
ft. shopping center on the site. Major
tenants now include an Alpha Beta supermarket and a Skagg's drugstore.
Additional one-acre sites were offered at $8 to $10 psf in 1985. The property was purchased for $1.13 psf in 1983.
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SUMMARY
- Dallas
Garland LP
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$842,326 |
Architecture, Eng. & Planning
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$16,800 |
Real
estate taxes |
$42,600 |
Resale price (11/84) |
$2,450,000 |
Gross
appreciation |
$1,607,674 |
Holding
time: |
1
year &3 months |
156.8%
ANNUAL PROPERTY APPRECIATION
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