By Nicholas Leider
KEEPING DEALS IN THE PIPELINE
A CCIM candidate in Atlanta keeps his pocket full of potential deals in affordable housing by leaning on Site To Do Business to save time and money .
Affordable housing is a complicated market . Unique variables can quickly turn a straightforward deal into a hairy proposition . Synthetic ceilings on rent levels , for example , can make it harder for a potential development to pencil . Increased government regulations and standards , meanwhile , are stacked up opposite tax breaks and other economic enticements for developers . The regulations go beyond market forces by measuring housing and social need with census-tract-level statistics pointing developers to more effective and equitable outcomes .
Jeff Thompson , principal at Acacia Realty Advisors in Atlanta , understands the details matter with so many i ’ s to dot and t ’ s to cross . A CCIM candidate , he leverages the mapping features of Site To Do Business and Esri ’ s Business Analyst to efficiently and exactly examine potential developments for his clients .
“ I can kill a deal or know if it ’ s got a future within an hour ,” Thompson says . “ With the mapping tools , once I ’ ve established certain parameters , I can pinpoint exactly what I need — looking at the proximity of a supermarket , post office , restaurants , and other important uses . ”
Considering the involvement of government entities in developing affordable housing , sites are often scored according to certain criteria . Knowing how to navigate this process is key to Thompson ’ s ability
Developers understand the existing complex restrictions in the site-selection process , so it ’ s not feasible to be ultra-specific in terms of geography . to provide clients with the best potential developments .
“ It ’ s a different scenario than dealing with private equity ,” he says . “ In that case , you can say the nearest grocery store is 0.6 miles away and [ investors ] aren ’ t going to sweat that . But I know having a store within a half mile will improve my overall score — so that ’ s why it ’ s so important to be exact in mapping sites .”
With developers a bit beholden to state and federal requirements for certain aspects in affordable housing building sites , Thompson has a bit more leeway with his clients . They understand the existing complex restrictions in the site-selection process , so it ’ s not feasible to be ultra-specific in terms of geography without the proper data to disseminate .
“ People always have subjective things they like or don ’ t like in a deal ,” he says . “ One spot may be too rural and another could be too urban — but I ’ m trying to fish for a particular kind of fish .”
Locating workable sites for affordable housing is also an exercise in both quality and quantity . Working with his clients on a longer timeline than a single project , Thompson has multiple deals in his pocket at a time . If zoning becomes a problem for one or the financing falls apart in another , it ’ s important to have options .
“ Let ’ s say I have eight sites I ’ m looking at now . If my No . 1 option dies , then all the rest
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COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE FALL 2021