Why a Yield Study is Important

By Bruce Firestone | Uncategorized

Nov 14

When representing a seller who is selling a development site, it’s important to convince him or her to authorize a yield study so that potential buyers know what type of return they might get when they buy and build on that land. If you leave it to potential buyers, they will discount yield by quite a bit in order to buy a site at less than asking price and then add density afterwards.

A yield study is an inexpensive way to level the playing field. Here’s a study done by Leo Clement for a 1.6 acre development site on Fernbank road in Ottawa ON.

Leo did 3 scenarios that demonstrate the property can accommodate 21 towns and 2 bungalows (plan A) or 12 towns and 28 stacked units (plan B) or 52 stacked units (plan C).

image

image

image

Here is more info on this opportunity.

For Sale

5441 Fernbank Road, Ottawa ON K2S 1B6

List Price: $995,000 ($14.28 per sf)

Location: west end Ottawa ON Property Type: land suitable for development in fast growing Kanata.Area: 1.6 acres (229′ x 303.9′ approx)

Development SiteDevelopment Site

Yield: Client-commissioned yield study suggests property can accommodate 21 towns and 2 bungalows or 12 towns and 28 stacked units or 52 stacked units.

Remarks: Surrounded by residential sub-divisions built by Cardel, Metric, Monarch, and others. Walmart and more major commercial developments nearby. Can see Canadian Tire Centre to north. High school has been approved for adjacent property on eastern boundary. Excellent location for plaza, retirement residence, condo or other ancillary uses. Property comes with farmhouse and storage building. Originally part of Wilson farm. Sold for land value only. Directions: From Ottawa, proceed west on Highway 417. Exit at Terry Fox Drive interchange. Proceed south on Terry Fox Drive, turn west on Fernbank and look for realtor sign.Brochure: www.old.dramatispersonae.org/images/5441-fernbank-available.pdf

MLS # 907178

image

image

image

image

image

Spread The Word

Never miss a tip, insight, or strategy

Stay up to date and get my latest blog posts in your inbox. One insight could make all the difference in your returns, and your retirement.

>