All Forum Posts by: Karam Khalil

There is another type of project feasibility that should be explored if you have not already.  I work with developers on similar size projects, either SF/MF/Commercial, etc, but the engineering "due-diligence" is a key in determining the overall project feasibility. 

I am a Civil Engineer & perform due-diligence studies for clients and the basic things to be checked are: 

- Zoning.  If you have a site plan, making sure your site plan fits within the zoning criteria for lot width, depth, side yard lots, etc.  If you dont have a site plan, this is the necessary starting point to determining how much you can fit onto your site. (Unless you plan on doing a Planned Development to slightly modify zoning standards).

- Floodplain classification

- Utilities. What are available to your site & do any City utilities needs to be extended for serving your development.

- Stormwater/Drainage Requirements. Will the City require detention? Very important to know because this often is not anticipated by developers and eats up developable acreage for the need of a detention pond.

I dont have the experience to comment on your question about potential returns, lending, pro-forma, building expectations, etc.  But if you have any questions about engineering or what I touched on, let me know!  I've done a handful of developments in DFW. 

I have not done a townhome development but I am looking to get into townhome development and we identified a few things from the few parcels of land that we have analyzed:

1. Not all areas are suited for townhome development.  For example, even in the hot growth market of the Dallas area unless there is dense development, townhomes are not suited for that area.  

If you are unsure if the area is suited for townhome development hire a consultant to do a market study.

Also, do a search in the area to see if there are other townhomes for sale.

Another way to do it is to talk to a few GCs who are doing development in that area.

2. We found a piece of land that was similar size to yours in an area that was ripe for townhome development but was rectangular in shape.

After talking to a consultant we found that the land was not wide enough to accommodate townhomes on both sides of the rectangular land as we had to account for roads and sidewalks in between the homes and those had to be a specific size based on city rules.

The seller believed that we could fit about 90 townhomes on the almost 6-acre parcel, however, we could fit only 45 to 50 townhomes as the land was not wide enough.