Convergence Investments

Complete:140 Acre Master Planned Community

Project Details

Property Location:
Sussex County, DE
Property Type:
Residential Resort
Acquisition Date:
Project Cost:
Return Multiple:
280 Single Family Units
Completed Project

Project Summary

Located in Lewes, Delaware and 7 miles from the beach, this 280 home master planned community was placed under contract through a two parcel acquisition strategy. Specifically, two separate purchase agreements were created to segment the acquisition in two parts for the purpose of segmenting liability, and creating a per parcel unit count that avoided time-critical regulatory standards for subdivision. Most notably of these was the avoidance of a Traffic Impact Study (TIS), which is typically a 1.5 year process in Delaware, and is within the critical path of the development timeline.

This project also featured a 170,000 gallon per day private on-site wastewater and disposal system. The level of proposed treatment for the processing of wastewater was such that it would allow for beneficial reuse as spray irrigation along the extensive trail and pathway system within the community. This also allowed for a 100% increase in the density of the project as compared to the original underlying zoning.

The property was placed under contract for purchase in 2003, and after a 3 year approval and permitting period, the contract to purchase the property was sold to an independent developer/investor and is now under construction. Highlights of the project include:

  • Split-parcel Settlement, to allow for the avoidance of a Traffic Impact Study and a significant decrease in the permitting and approval process.
  • Securing a 3 year contract to purchase, with proper entitlement contingencies.
  • Army Corps of Engineers approval of the wastewater treatment and disposal project, as well as the jurisdictional determination for the conveyance of wetlands.
  • All other agency approvals necessary for the development of the site, including non-appealable preliminary site plan approval of the proposed site plan.
  • A density increase of 140 units (total 280) from the original zoning due to a well orchestrated site design and private sewer concept.
  • Sale of the contract to purchase as a “capital asset” to a third party investor for a meaningful return on investment.