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Land development
Land development
infrastructure
Overview
 When
raw land is even modestly improved, the price
per square meter can increase substantially on a
percentage basis. The construction of a simple
access road to an ocean view property can double
or even triple the value of that property. New
electrical and water infrastructure also has an
excellent ROI.
Relatively inexpensive property improvements
such as "clearing" and "cleaning" are important
and can dramatically improve the "curbside
appeal" of a desirable property and therefore
the resale price of essentially "raw acreage".
Planting significant numbers of fruit trees,
creating small ponds within rivers, and
constructing a distinctive "entrance" to a
property with some well tended landscaping can
generate a high payback.
Water and Electricity
Requirements
 Putting
in electricity to the lot line is very useful
for the resale of the land to a developer as
well as adding great value to the property. It
is apparent to most developers that electricity
is sometime difficult to install especially in
the interior of the country. There is an
important
learning curve of how to solicit and apply for
electric rights.
Water is another vital asset to appreciating
land values. Having a good water reserve and
infrastructure plan for a development will
significantly increase and firm up the final
selling price.
Assurance of adequate water is always a much
greater risk than installing an electrical grid.
Drilling a new well can be expensive and the
flow results are never predictable. Therefore,
we have carefully cherry picked all of our
properties making sure there are abundant water
sources, easy electric access as well as good
accessibility
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Main Access and Arterial Roads
 The
"main access road" is typically the "last mile from a municipally well maintained paved
road such as the road to El Valle or the Lajitas
road.
By an "arterial road" we mean any roads within a
development typically to a vantage point with an
ocean vista.
By far the main value to a property is derived
from the "main access" road. The better this
access road, in terms of twists and turns, width,
and length of well-paved surface, the more value
is added. Women, the main decision
maker typically for such a property, are
particularly conscious of well-paved and well-planned
roadways.
More
Landscaping and Planting
Opportunities
Dollar for dollar, careful landscaping can
add a great deal of value to a property if
sufficient time is available to let the
plantings mature. Small plantings become
attractive trees in a few years and can enrich a
barren piece of land.
Fruit trees in particular can add considerable
value for the average baby boomer client.
A location for a "flower and tree nursery"
should be considered seriously for each the
properties in the portfolio. This approach is
used by Altos Del Maria. They make various
plants and trees available to their clients at a
reduced cost and the entire project is improved
by client labor (typically through a hired
gardener). Therefore we have mimicked this
approach and have organized a "vivero" with more
than 1,000 new plants, fruit trees and palms.
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Entrance Way Opportunities
A "sense of arrival" is important to optimize
the value of the portfolio
properties. Some of the best projects, such as
Coronado, Altos Del Maria,
Punta Barco, Las Nubes, and Vista Mar all have a
formal entrance way with a
small office for a security guard.
The actual architecture need not be elaborate
but careful attention to
detail is critical and will be noticed by the
discerning potential client.
The detail includes the surrounding plantings,
signage, color schemes,
materials used, quality of finishes and the road
surface.
It is recommended that a consistent image is
presented at every development
site at least 6 months before it is put on the
market for resale.
 It
may be desirable and cost effective to utilize a
"two-phase"approach.
The first phase would include the construction
of an entrance with
appropriate plantings but without a "security
guard office" as this feature
is not yet required. When the property finally
goes on sale, the second
phase "security guard office" could be
constructed on existing footings for
this purpose as an integrated element to the
entrance.
Our architects have designed for us an exclusive
gate design which we have
already implemented in Pedasi and will shortly
also be built in Coronado
Heights and El Espinito.
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