Most homebuilders are not interested in the speculation
or development of commercial land. It is
usually a “necessary evil” in order
to gain the approvals they need from the municipality.
In fact, some homebuilders have a corporate mandate
that they can longer inventory commercial property.
By creating strong partnerships with homebuilders,
MLI has begun to gain access to commercial properties
that have been acquired by the homebuilder, and
buying it from them at a below market price. Or
through land warehousing agreements, MLI may retain
the commercial portion at the per acre price that
the entire parcel was purchased for.
This creates much more
opportunistic returns for the investor while helping
the homebuilder keep commercial property off their
balance sheets.
MLI is continuously looking for commercial developers
to provide exits when the commercial land becomes
viable or to create more joint venture opportunities.
