The Parapet LLC

Real Estate Development

 Thank you for the chance to introduce you to our newest real estate development opportunity!

The Parapet LLC, is now developing two large parcels in the City of Memphis.

These side-by-side parcels total over 10 acres of undeveloped and virgin land.

With our due diligence completed and assumptions validated we can confidently state these as free and clear of any title issues whatsoever as shown by the  Chicago Title Insurance Company

In real estate development, we know that zoning is everything.  You might find acreage and think that you can get a zoning variance so that you can build. In theory, that is a true statement. It is also true that you may find your application variance denied and not having any recourse and now you are stuck with land you can't develop. 

We aren't relying on speculation because this acreage is already zoned RU-3.  This land was designated by the City of Memphis to attract developers to construct new housing to address the continuing housing crisis that is only been exacerbated the last few years. Both parcels are zoned RU-3 for multi-family construction up to three stories.

First we had a new land survey, performed by Campbell Surveying.

Then we had the land checked out for any unseen issues by having a Phase One Environmental Site Assessment performed by BH&M Environmental and engineering has been provided by one of the Mid-Souths top companies, The Reaves Firm

Now let’s talk about that all important term,  Road Frontage.

Measuring approximately 2 blocks long  (914+ feet) and one block deep (474+)  and it features a Corner Lot for maximum diversity.

All utilities are available at the street, and the water supply has been recently updated and improved to provide sufficient flow for development of multi-family units. The main frontage is on a newly paved avenue and wide enough to accommodate 4 lanes of traffic, though it is lined for two lanes.

(Speaking of Streets, this property is located on St. Elmo Ave, and it is hard not hear the theme song from St. Elmo’s Fire playing in your head every time you think of it).

Now I realize that this is where property description typically concludes, but there are a few more details that only serve to underscore the opportunity.

This property is held in a Land Trust. What does that mean for investors? Total anonymity. Because the Land Trust holds the title, the owners (beneficiaries) are anonymous. Nuisance lawsuits are halted before they are started.

When a property held in a land trust is “sold” it describes the process where current beneficiaries meet with the buyers, an attorney, and a notary and the paperwork is signed and notarized. Period. That is it, when it comes to closing.

There are no publicly recorded documents and again, this guarantees total anonymity for the next beneficiaries as well

 I do have one thing left that I want to get included here before I forget.  I’ve already stated that is zoned specifically for multi-family and what we have found through our engineers is that it can multi-family units can be developed “By-Right”. What does that mean for developers? Project approval is done in house with the Division of Planning and Development (DPD)

There are no public notices, no requirements to advertise and hold community meetings, no fights with the neighbors, and no presentation to the City for approval!

I was ready to wrap it up here but then I realized that there was one other very important thing for developers. 

The City of Memphis now allows new construction (up to six units) to be built under residential code! That’s means a lot less construction cost and time. No sprinkler systems! We used to have to present separate drawings for electrical, plumbing, and mechanical which was more time, hassle, and money and all those restrictions are now erased. Read more about how Memphis is making life easier for developers here Memphis Development.

We have a new Federal Administration that is set on reducing regulations. We have a new City Mayor, Paul Young.  As the President of the Downtown Memphis Commission and the former Director of Housing and Community Development for the City of Memphis Division of Housing and Community Development Mayor Young is a strong ally and advocate of new housing. 

The economy is rebounding, interest rates are coming down and so are the  Cap Rates.

For builders, finding suitable land to build new housing is not an easy thing to do, the competition is fierce and like the old saying goes. "They aren't' making anymore of it"