The art of site assemblage
By: J. David Chapman/December 10, 2020
The assemblage of land for development is a time-consuming, complicated process and is one of the biggest challenges in urban “infill” development.
Land assemblage is a tactic employed in land acquisition, where a real estate professional acquires two or more adjacent parcels, combining them into one. The process becomes more difficult depending on the number of parcels and landowners. The success of the assemblage process can not only determine the viability of a given project, but also change the project entirely. Obviously, this complex process is worth it when the value of the whole (the combined parcels) is greater than the sum of the value of the parts (the individual parcels). The process is an interesting intersection of land-use policy and landowner property rights.
One of the most prolific site-assembly experts is Bert Belanger. Bert has the unique ability to “see the site” gained from his undergraduate study of architecture. He can analyze and secure the needed entitlements (zoning and land use) with his ability to practice law, and finally has the expertise as a real estate broker to actually put the entire deal together and market it to clients and produce a needed amenity to the community at large.
Most people don’t like or enjoy change. This is probably the biggest issue we face on city councils around the country. City planners carve out areas for certain land applications such as industrial, residential, office, and retail. People purchase land, or even homes, based on adjacent land-use zoning. The problem is nothing is ever set in stone. This zoning can, and often does, change and zoning maps are updated. They might even be changed by action of planning commissions and city councils. When the “highest and best use” of the land changes and community needs change, zoning often changes.
The assemblage of land is often the catalyst to change zoning to now accommodate a “higher and better use” for the land. This is where it becomes a property rights issue. Those pursuing a land assemblage strategy for infill-development must understand that these people own this property and it is solely up to them whether to sell it to you. It is your vision, not theirs. It requires persistence and trust. It is tough work, but necessary work to change a city!
J. David Chapman is an associate professor of finance and real estate at the University of Central Oklahoma (jchapman7@uco.edu).