Warehouse with Caretakers
Status: In Progress – Received DA October 2015
Timeline: January 2015 (engaged town planner) – October 2016 (final sale)
Duration: 22 Months
Project Owners: Land Phil Fisher – NC trust will develop this
Total Project Value at Completion: $3,500,000
Project ROI: Profit on total sell is estimated at $300-$400k
Strat title and construction to sell, maybe keep 1. Our concept is to make owning small business and owning a home affordable. This project will be constructed form lightweight structurally strong products to enable affordability, with modern med/high finish interior for the house, rooftop garden to get in touch with nature.
We will use the land (owned) Value $400k and equity in the storage units to help fund the project. We have a private investor that has lent us $400k. We will chase 2 presales and borrow the balance. Due to difference I believe that sales on completion will be easier. Marketing is vital, must be perfect. Working on materials and import options at the moment. Expecting the construction to be $2-2.5m.
Challenges and Solutions:
Issue 1: Independent town planner didn’t like our concept and said she would not support it, and spread her opinion to other governing bodies.
Solution: Find another independent town planner, make sure they have the right attitude to the project and end results.
Issue 2: Council town planner did not like this project, and said she would not support it.
Solution: Speak to the director of planning, have a meeting, be very well prepared, and sell the concept based on what their planning scheme is looking for.
Issue 3: The water board has a 173 agreement on title in relation to the location relative to their settling ponds. They are not looking for development.
Solution: Meet with the water board, offer support of their situation and preparedness to work with them, retaining the 173 agreement on all titles.
Issue 4: Our neighbour (vacant land) objected to the project.
Solution: We sat and had a meeting with him, asking what he didn’t like, then what he wanted. He didn’t like the project, he wasn’t interested in doing a project on his land with us, nor an option on the land; he just didn’t what it to happen. He lodged his objection and we now had delays. With many discussion and continual ongoing further information, we retained the support of the director of planning and council eventually approved the project. They had to give him 21 days to take it to VCAT, he chose not to, so we now have a planning permit and we are going to marketing for presales. Sometimes patience and persistence is the only solution.
Lessons Learned & Investor Comments:
• Have a great team and talk to people, engage them. We spoke to many people before the project went to advertising; we had addressed local land owners and businesses, as well as other developers and agents. We gained an amount of interest and support. We chased letters of support that went
to council before advertising ended. Our new town planner was excited about the project, and prepared to work with us to
achieve our outcome.
• Get to know council planners and engineers etc. Although we had one that didn’t like what we were doing, we spoke to others that gave us info to work with to overcome her issues.
• Most situations will benefit from a preplanning meeting. Ask plenty of questions; get an idea of what they are chasing in their area. Use this to sell your concept.
• Be prepared to compromise (plan b,c,d.)
• Be patient and persistent