DYC Realty owned 40 acres on East 96th Street, in Carmel, Indiana, an area of emerging high retail land values. The owner’s desire to realize the property’s highest and best economic value was threatened on several fronts. The floodway of Carmel Creek reduced the usable acreage and thereby the land value by approximately 50%, an adjacent residential neighborhood was opposed to commercial development in their backyard and the property depth required the creation of a rear lot. The property also lacked a corner location at an intersection that could further add to the value. RESOURCE Commercial Senior Vice President Ross Reller, while at his former firm, had to address each of these mitigating factors, create a land plan optimizing the usable acreage, and identify multiple market buyers, ready, willing and able to close simultaneously on multiple parcels.
“RESOURCE Commercial SVP Ross Reller, while at his former firm, had to address each of these mitigating factors, create a land plan optimizing the usable acreage, and identify multiple market buyers, ready, willing and able to close simultaneously on multiple parcels.”
- , , DYC Realty
Ross assembled a team of engineering and legal professionals to tackle the valuation issues. Paul I. Cripe, Inc., was retained to redesign the floodway and obtain a letter of map revision from the Indiana Department of Natural Resources. This increased the usable acreage from 20 acres to approximately 35 acres. Meridian conducted a highest and best use analysis of the remaining acreage and recommended the creation of an auto park, an assemblage of multiple car dealers located in a single setting.
Purchase contracts were negotiated with two competing local dealers, Tom Wood Lexus and Tom O’Brien Chrysler, to occupy the two parcels fronting on 96th Street. A remainder parcel located behind the two dealers was also designated for auto dealerships. It would be accessed by a central boulevard separating the two front dealers. A building setback and line of site easement was also created to protect the value of the remaining parcel. Meridian assisted the legal team of Nelson & Frankenberger in representing the interests of the buyers and sellers to the adjacent neighborhood association and in the municipal approvals with the City of Carmel. A sale closing late in 2000 resulted in sale proceeds to DYC in excess of $5,500,000 for approximately 3/4 of the original parcel’s acreage.
Note: We have several professionals with substantial client transactional experience prior to joining RESOURCE Commercial, which is included above.