Land Development &
We are developing a new residential community in the Colorado Springs, Colorado area in 2019. The Colorado Springs metro area is one of the hottest housing markets in the United States. Home values have skyrocketed more than 9% annually for three consecutive years and are forecasted to increase another 7% in 2019. The average property price is approximately $350,000 for a home on an average lot size a sixth of an acre.
We are excited to be entitling 829 acres of land in Falcon, CO, just northeast of Colorado Springs, into approximately 150 lots for homes with acreage. These new homes will rest on 3 to 5 acres and be priced near $325,000. Falcon lies at the edge of the Colorado Springs metro area. It retains a rural feel but skips long commutes for residents. These lots will feature beautiful mountain views and will fulfill the area’s high demand for housing at an affordable price. With nearly no preliminary marketing, more than a dozen buyers have already submitted letters of intent on these properties in 2 weeks.
As an investment, we project an annual return of 25% over approximately a 3.75-years. This would yield a return of approximately 93% and a 41% internal rate of return over the term of the project. We project cash flow to begin at 18 months, however we expect to start pre-sales around the one-year mark. This will allow us to begin returning capital earlier in the project.
We have an amazing team in Colorado who will take this project through the entitlement process. Bill Guman, president of Williams, Guman, & Associates, has been a planner in Colorado Springs for more than 40 years. During the past 8 years, Bill has a 100% success rate for moving projects through entitlement. With our combined experience we are excited to turn this land into a beautiful community in Colorado’s stunning Pikes Peak region.