Convergence Investments


Complete: 180 Acre Master Planned Community

Project Details

Property Location:
Sussex County, DE
Property Type:
Residential Resort
Acquisition Date:
8.2.2002
Project Cost:
$2.8MM
IRR:
218%
Return Multiple:
6.4
Size:
360 Single Family Units
Status:
Completed Project


Project Summary
Located in Lewes, Delaware and 5 miles from the beach, this 360 home master planned community was one of the first projects in the area to qualify under the newly expanded AR-1 Cluster Overlay. Critical to this approval was a section of the property located in the Sussex Sewer District, and the incorporation of a 15 acre, 3,000,000 gallon per day, on-site private wastewater disposal system. The development strategy took proper advantage of the increased density available for the planned high level of wastewater treatment.

The property was placed under contract for purchase in 2002, 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:

  • 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 180 units (total 360) 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