Our business model is unique so our considerations in identifying appropriate properties reflect that uniqueness, in addition to some of the factors developers traditionally evaluate. Further, since we wear more hats than a developer, the type of analysis we conduct differs.
We’ve identified six (6) subjects that are of prime importance to us in evaluating and, ultimately, ascertaining properties that are appropriate for our projects.
The most common consideration in the field of real estate is Location. The old adage is that the three most important concerns in real estate are location, location, location. While location is an important concern, it is not the only concern for us. However, when evaluating location, we ask a number of questions, including the following.
Is the property located in one of our core areas? We chose the name Develop in Daytona because that is the area we want to focus on. Downtown Daytona and Beachside are our primary target markets as well as other downtown areas in the Greater Daytona Beach area. As county residents involved in the business community for decades, we know what our community needs. We’ve worked with property in incorporated Volusia, Ormond Beach, Port Orange and other areas outside Daytona itself.
What features does the property have? We like properties with a river view, like our Goodall and Rio Vista properties or that are walking distance to such amenities as Main Street (our Oleander and Rio Vista properties.) It appeals to us to know that our properties are in City redevelopment zones or historic or Main Street districts. We then know that there is local, governmental commitment to the neighborhood. We also consider whether the neighborhood is transitional enough to benefit from redevelopment? We want our work to make a difference so we prefer neighborhoods where changes to just one or a few houses have a big impact. Conversely, if there are a number of properties available, we consider the impact that bulk purchases and redevelopment would have. Similarly, we look at infill lots in order to provide new construction that both complements the existing structures and benefits existing owners. Sometimes, larger lots allow us more flexibility; other times, we can be creative with smaller lots and take advantage of non-conformities with the lot that are grand-fathered in.
What features does the structure have? In looking at existing structures for rehabilitation, we prioritize certain elements of the structures. It is the character or the style of a structure that oftentimes first catches our eye. We like structures with features that represent a certain period in history. Architectural styles such as Mid-Century Modern, Craftsman, Mission, Mediterranean and Victorian are some of our current interests in the Daytona area.
Other features that speak to our aesthetic include fireplaces, high ceilings, and original floors that are in good shape. Some of our properties have included floor to ceiling windows, porches, and double-glazed windows.
The structure must be structurally sound and must have either a workable existing layout or a footprint that we can use to accomplish our plans.
What legal issues exist? Some of the types of issues that can crop up can include title problems, encroachments or other encumbrances. We analyze these issues to determine what remedies are available and whether the issues can be resolved within a reasonable time.
What are the financial requirements and benefits of the project? In addition to the listing price of the property, we look at the value of the property, including the circumstances surrounding the listing (bank-owned or foreclosure, estate sale, divorce). We consider the financing available for both acquisition of the property and the necessary construction. We take into account the estimates of contractors and architects. In addition, we research to determine whether there are financial incentives available, including grants or low-interest loans.
What is the ambience of the property? Although this consideration is not as tangible as the others, our passion for real estate leads each of us to derive a sense from the property. As a team, we evaluate the intangible characteristics that make an impression on each of us and decide together whether this element of the checklist is met.