Finished Lots
Landing Banking Case Study
In late 2022, we identified a unique opportunity to acquire over 120 finished lots in one of the fastest-growing regions of Central Texas. Our investment thesis was anchored in a broader strategic shift—providing capital solutions to homebuilders looking to remain balance sheet light, while positioning ourselves in markets with long-term structural demand for housing.
Why We Made the Investment
Valuation Discipline:
Our underwriting showed the lots were trading at a significant discount below replacement cost. This provided a strong margin of safety and created asymmetric upside. Our belief was simple: even in a flat or declining market, we’d preserve value; in a growing market, we’d see meaningful appreciation.
Downside Protection:
We focused on finished lots in well-established communities with demonstrated sales velocity. Our view was that, in a downside scenario, these lots would be highly liquid and could be sold to other active builders. This gave us a level of optionality that made the risk profile more attractive than traditional land
Creditworthy Counterparty:
We partnered with a well capitalized homebuilder who had committed to repurchasing the lots, allowing us to generate a predictable return while maintaining ownership of a high-quality, hard asset.
Land Banking 120+ Finished Lots
Strategic Rationale:
We saw this opportunity as a smart place to put capital in the short term. With the right structure and a committed builder, finished lots in high-demand markets like Central Texas offered a way to preserve value while supporting future home construction. Our approach focused on protecting downside risk—backed by careful underwriting, strong market fundamentals, and a clear path to resale if needed.
Driving Outstanding Success for Clients & Investors
Our Strategy: Partner with experienced, well-capitalized homebuilders in communities with solid residential demand and appropriate pricing.
