What is Suburban Land Readjustment?

Land readjustment is a general term used to describe the physical reorganization of property, where original property owners retain their property rights in a new physical format in the new development. Land readjustment is used widely around the world from agricultural and peri-urban settings to densely populated urban centers. Land readjustment applied to a suburban context could have many different ownership structures, however below is an example of land readjustment strategy that follows a ground lease model.

Original property lines

A critical mass of geographically connected properties is needed in land readjustment strategies

Public Space Allotted

Public space owned by the municipality could be acquired not by capital, but by reducing the property taxes on the land cooperative over time. 

Land is Assembled

Homeowners assemble their land creating a jointly owned land cooperative. Ownership is based on home equity. 

Ground Lease Begins

The investor builds and has 100% ownership over the new commercial buildings on the land and enjoys a "no fee" ground lease, until the investment for the condominium property has been fully recovered.

Condominium Built

An investor finances and builds a condominium property for the homeowners in exchange for a "no fee"ground lease on the remaining land for a number of years.  

Ground Lease Expires

Once the ground lease expires, all improvements to the land including the commercial buildings belong to the original homeowners. 

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