Land

Entitlement, assemblage, land banking and pre-development financing.

Land is the hardest asset in commercial real estate to finance and the least standardized. There is no NOI to underwrite. Lenders underwrite the entitlement path and the exit, which means the credibility of the plan and the certainty of the takeout do more work than the appraisal does.

Proceeds, recourse and carry are all negotiable in ways stabilized debt is not, which makes preparation unusually valuable.

Where the capital comes from

Banks, typically recourse at conservative leverage; seller financing and subordinate seller paper; private credit and bridge; participating and profit-share structures where the lender takes some entitlement upside in exchange for proceeds; and land banking with a structured takedown schedule.

What we underwrite

• Entitlement status and precisely which approvals remain
• Utility and capacity commitments, and what is merely indicated versus contractually committed
• Carry cost and interest reserve sizing through a realistic entitlement timeline rather than an optimistic one
• Agricultural exemption status and rollback tax exposure
• Title, access and frontage continuity across parcels
• Takedown structure and release prices for phased sales

Representative experience

A $115M bank-debt land assemblage in East Austin. Assemblage financing is its own discipline: multiple parcels, staggered closings, release provisions, and a lender who has to get comfortable with a collateral position that changes shape at every takedown.

This material is for general educational purposes only and does not constitute legal, tax, or financial advice. Terms, programs and requirements change and apply differently to specific transactions; confirm current requirements with qualified counsel and licensed professionals. Gibson Capital Advisors is a debt advisory firm and does not make loans.