I was looking at Southern Land Co's portfolio map online and what stood out to me is they have sold several of their developments. While there's nothing suprising about this in general, I guess I sort of envisioned them holding onto these properties for a while but maybe not the case. Take for example, the recently completed Nove at Knox in Dallas. Their website says it was sold. A quick search online didn't really reveal any major news articles about this (not that I looked very hard) but sure enough, a California company owns it now per DCAD website: https://www.dallasca...1526000D05A0000
What are the reasons why developers sell their properties soon after completion? Here's a few ideas, but I would be interested to hear from anyone with direct experience on this business or which of these do you predict will resonate for the future of Deco 969?
Residential high-rise developers build and sell their properties for various reasons, depending on their business objectives and financial goals. One reason is to generate revenue by selling the property after its completion, thereby realizing a return on their investment. Developers may also want to use the capital they receive from the sale to fund other projects, pay off debts or invest in new ventures. Another reason could be that they specialize in developing and constructing properties, but do not have the resources or expertise to manage the property long-term. In such cases, selling the property may be a more viable option than holding on to it and managing it themselves. Additionally, selling the property allows developers to mitigate their risk, as the real estate market can be volatile and unpredictable. By selling the property, developers can lock in their profit and avoid the potential downside of holding onto the property if the market were to decline. Ultimately, the decision to sell a residential high-rise property is based on various factors, including market conditions, financial goals, and business strategy. (Source: OpenAI)