I have been seeing more instances of municipalities making city-owned properties available to investors as a means to generate revenue instead of costing for maintenance. In some cases, a city will provide more favorable terms like tax advantages or zoning changes to encourage the investment. Real estate investors that research for such opportunities often come out with favorable deals for the long-term.
These situations, like the one linked below, can be very favorable for investors that have done their homework. One aspect not discussed is whether or not properties acquired through a municipality are giving savvy investors a better deal than for other similar properties which are offered privately. Those more common deals typically do not have possible zoning changes, tax incentives, or structured bidding situations.
It's an example of why commercial landlords need to stay on top of possible zoning changes and unused city properties. Knowing what the competition may bring is an important element of operating a real estate business.You never know what opportunities may be nearby if you don't seek them out.
Finding out about a potential acquisition through the municipality could enable an expansion, a separate partnership, or a new project for a current local landlord or investor. However, the existence of an opportunity through a municipality could also result in a competitor entering the marketplace with an advantage.
I remind my clients and students about keeping track of what's going on around your area or properties of interest above and beyond current listings and marketed opportunities. Not having competitors involved could bring an investor in a municipal offering even more advantages.
https://la.urbanize.city/post/santa-monica-offers-three-city-owned-properties-developers
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