New Member from Alaska, Investing in North Dakota

[Jeff Kovac]

Hello, my name is Jeff Kovac. My wife and I are Alaskan residents currently operating a small business in the oil fields of North Dakota. Found one of BP’s forums during a commercial real estate search. Checked out the site and joined. I’m now spending less time surfing and more time learning. Thank You to the staff, contributors and frequent forum participants for sharing their insight.

Kind Regards

[Bill Gulley]

I see I missed 2 mentions, I breezed through....

Jeff, I saw where you were addressing the issues of the are, lack of planning, highest and best use, options and on to the bst types of tenants and ground leases.

Congrats on the closing. I see you did some due diligence and mentioned a feasibility study, that is the first step. The City should be assisting with input as to what is needed, but what might be needed is not always the highest and best use of the property or in your best interest. I would first get with a MAI appraiser for a narrative appraisal of highest and best uses. If one is not local, it seems you have the ability to do more research on this basic aspect. Seems you are in a big hurry and the land isn't going anywhere....

1 1/2 acres, depending on the shape of the parcel, is too small for a SFD project and it sounds like due to location that's not a good option. Residential use on such a parcel need to be with a high concentration, 30/40 units, perhaps more. Sounds like retail or a mixed use of high concentration residences with retail would be a better option.

Better yet, could be to have a long term lease, ground lease and have a franchise develop. CVC or Walgreens, Steak n Ale, Red Lobster, etc.
This is the easiest way out for a land owner, but you'll need great negotiation skills playing with the big boys and you will need an attorney.

Consider condo-ized office retail, each owner builds to specs and purchases, sell or lease the land. I'd not retain any maintenance issues being out of state, but if there is a good local property management type there, it can be a long term contributor to profits and reason for shorter lease adjustments on common areas. Gotta set a strategy.

Just because you have a developer headed your way is no reason to jump on a proposal, there aren't but four coners to that intersection. If it's a prime location, time is on your side.

As to partners, I'd suggest you exhaust the possibilities without a partner first. Sell and walk, ground lease, build to suit (commercial condo office/retail) or lease-long term option.

There is my dimes worth. Keep us informed, good luck.... :)