Financing Chicago Lincoln Park Development

[Mancill S.]

I am representing a client that is relocating and the space they currently occupy is located in a great area in Lincoln Park in Chicago. I have a pro forma all worked out and the profit potential is over $3 Million. I have property, architecture and development plans all in place.

I am lacking the financial ability to do the project myself. So I came here seeking advice on if I should just offer the property on the open market and colllect a commission or is there a good way to seek out private investors that may be willing to partner on this deal?

All opinions are welcomed Thank you

Stewart

[Joel Owens]

So you are a broker or agent??

If a qualifying head broker of your company then you do not need approval but if an agent you need to ask your broker for approval before handling this type of project. Development is not covered in many E and O policies for brokerages as it is a highly litigated and claim ridden niche of real estate. So many things need to happen right to make a development successful.

Now taking the approach you are the broker or are an agent with brokerages approval then have you listed this property yet?? If so the next step is to determine the properties highest and best use. You might have architecture and development plans but that might not get your client the most money. Also if time has lapsed since the plans were drawn up the county or city might have changed plans for the area. Also the highest and best use for getting the most money might not be approved with the master land use plan. So then the next step becomes you need to figure out the next best highest use that will get your client the most return and be approved by the local muni.

A big factor is time as well. How fast does your client need their funds and a closing?? That will dictate selling price. The more a developer has to do with a development the less they pay the seller as their cost and time rises to make it successful.

If you are not licensed as a broker or an agent then you will need to take a different approach to getting paid rather than commission.