Land Assemblage & Financing Strategies

[Alec Harris]

I am currently working on my first land assemblage deal, which is comprised of 5 parcels located in a downtown. The largest parcel is owned by the city, while the three other parcels are held by private owners. One of the private owners we have been in talks with is open to selling their parcel. The city is open to selling their parcel. We have been in discussion with another owner who has owned their parcel since the 60's and we believe we can negotiate a sale price. The last parcel owned is a vacant plot of land owned by a single family developer (this will be the tough one). For people who have performed a land assemblage before, what is typically the best strategy to secure all parcels? Which parcel, should you typically go after first? Do you typically execute an LOI with the seller to go under contract and include an option to purchase their land if we are able to acquire the rest of the parcels? What are the typical financing strategies for land assemblage?