Myers Development (2006)

In July 2006 ALY Construction became a 50/50 partner in Myers Development, an affiliate of TMG.  Myers Development is currently in the process of developing several of the remaining unsold properties in TMG’s portfolio.  Myers Development will be actively involved in various vertical development projects including mini-warehouse complexes, retirement communities, residential projects, and others.

Timing

As a result of the various forces that drove land prices up in the late 80's and through most of the 90's, there was a substantial decline and readjustment in land prices. Primarily as a result of the real estate syndication business, land prices in many U.S. markets were simply no longer economically justifiable.

The federal government’s active participation in the bulk selling of real estate and major tracts of land through the RTC only hastened the decline. In 1987 the Internal Revenue Service revised its real estate investment tax credit laws. These government actions, along with substantial over-building in many markets, fueled a downward trend in real estate values.

Consequently, TMG restructured itself. While continuing to acquire land investments for the development of affordable housing, TMG continued its research activities throughout the 90’s.

Price adjustments began to correct themselves during the early part of 2001 and a shortage of well-located investment and development land began to develop. In early 2002 TMG once again began broader land acquisition and entitlement activities.