River Hill
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Greenroad Land Advisors sought after approximately 2,000 acres in Clarke County, Alabama. The desire was to find land with untapped infrastructure, to provide the opportunity to make low cost, high value improvements. Furthermore, the project scope included selling every acre when complete. This meant GLA needed to capitalize on the high demand for mid-size recreational parcels in the region.
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After visiting eight different properties; researching and evaluating their ecological, topographic, proximity, and various other factors - GLA and the investor made a joint decision to acquire a 2,020 acre property.
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The River Hill property was acquired at a price of $1.9m - approximately $940 per acre.
It was originally listed at over $1,000/acre - and based on our research & analytics, we could have paid a bit more than that - but GLA ended up negotiating it down below, and buying it under market value.
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GLA immediately began to implement the improvement plan - adding & improving internal roads, constructing a rail car bridge over Salt Gut Creek, installing new gates, and adding wildlife food plots for hunting & viewing.
With the improvements in place, GLA then proceeded to survey off 940 acres into 3 separate parcels, and sold them for $1,700/acre ($1.6m); recouping 85% of the original purchase price.
At the same time, GLA ran the process to place the remaining 1,080 acres into a conservation easement - attaining a charitable contribution to the land owner, valued at $2,100,000.
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The remaining acres, that now had the conservation easement attached, were sold at a price of $1,100,000 to a recreational buyer.
This sale brought the total income from the land to $2.7m, along with a $759,000 tax credit that can be carried forward for 15 years.
Half Chance
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An opportunity to acquire 1,080 acres from Westervelt appeared in late 2017. The property was located Marengo County, Alabama; which met one of our investor’s objectives - which included fulfilling familial aspirations as well as preservation. This deal, however, took a different path from what was intended, and Greenroad Land Advisors was able to guide to a good place.
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The ‘Half Chance’ property was acquired at a price of $2.7m - approximately $2,500 per acre.
As mentioned - originally, the investor's strategic objective was to procure the entire property, enabling the fulfillment of specific familial aspirations of growing the family base land holdings in a specific geographic region of Marengo County, AL
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GLA acted fast with improvements; building an internal road system, installing new gates, and adding wildlife food plots for hunting & viewing.
Our meticulously implemented plan resulted in the divestiture of 600 acres via sale of six separate parcels; one of which was bought back - which recouped roughly $1.3m of the original $2.7m
The remaining, contiguous land (480 acres) became an extremely desirable tract to conserve through an easement.
While evaluating the easement, GLA made a fortuitous discovery - the land possessed a substantial amount of clay, suitable for road building. Simultaneously, the state of Alabama was expanding Highway 43. We were able to incorporate the donation of said clay into the easement - which bolstered the charitable donation substantially ($2.24m)
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The remaining acres, that now had been protected with a conservation easement, were valued at a current market value of $1,200,000 and retained by the original owner as a long term asset.
This asset brought the total income and asset value to $2.56m combined, along with a $880,000 tax credit that can be carried forward for 15 years
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