Financing Mechanisms: Top-Selling MPCs Mid-Year 2019

How are master-planned communities financing and constructing public infrastructure? RCLCO recently teamed up with Launch Development Finance Advisors to investigate, and found that 88% of the 50 top-selling master-planned communities utilized special purpose taxing districts. In addition, Launch and RCLCO have calculated the estimated net proceeds for a sample home in the Top-15 MPCs using average prices.

The joint Launch/RCLCO study confirms that the private sector is playing roles that used to be primarily fulfilled by municipal governments with respect to constructing public infrastructure. Carter T. Froelich, Managing Principal of Launch observes that “The private sector now routinely uses public sector tools such as tax-exempt bond financing through special-purpose taxing districts including, but not limited to, community facilities districts (CA, HI, AZ), Special Improvement Districts (NV), Metropolitan Districts (CO), Public Improvement Districts (NM, TX), Municipal Utility Districts (TX) and Community Development Districts (FL) to create successful large scale development projects.”

Every year since 1994, RCLCO has conducted a national survey identifying the top-selling MPCs through a rigorous search of high-performing communities in each state. Our most recent report, The Top-Selling Master-Planned Communities of Mid-Year 2019, highlights the top line sales figures of the leading MPC’s. In addition, RCLCO maintains a robust database of MPC research, to better understand such issues as infrastructure finance, recreational and social amenities, marketing, buyer profiles, market segmentation strategies, housing products, commercial development, town centers and more. For more information, contact us.

Learn more about Launch Development Finance Advisors

Article and research prepared by Todd LaRue, Managing Director, and Karl Pischke, Vice President.

Additional research support was provided by Josh Ball, Sevan Douzdjian, Ryan Guerdan, Kara Perusse, Lorren Royston, Eric Whinnen, and Morgan Zollinger.

Disclaimer: Reasonable efforts have been made to ensure that the data contained in this Advisory reflect accurate and timely information, and the data is believed to be reliable and comprehensive. The Advisory is based on estimates, assumptions, and other information developed by RCLCO from its independent research effort and general knowledge of the industry. This Advisory contains opinions that represent our view of reasonable expectations at this particular time, but our opinions are not offered as predictions or assurances that particular events will occur.