interest rates have slowed the market, but there are still good opportunities for certain asset classes in the right market. It’s all about connecting with a partner that knows the local market to help you navigate the overall development process, including planning questions — particularly for mixed-use developments — that cover everything from zoning and parking to individual ownership arrangements and dealership access easements. Stancill: The considerations needed to make sure a deal is supportable, marketable, financeable and profitable can seem overwhelming. A lot of dealers may be interested in mixeduse development but hesitate to get out of their lane. They know dealerships, not commercial real estate. What can their land support, and how do they meet future spatial needs? Thinking through these questions — with the right team at the outset — helps get a project designed, zoned, developed, managed and financed. Pella: In the mixed-use space, you’ve got to consider factors like market rents and lease-up trajectory (for commercial space), along with ground-up construction risks and various proposed uses. Compared to standard dealership buildouts, mixed-use developments require a more complex financing structure for the construction phase and an active commercial real estate oversight during each phase. The ownership structure and capital mix could provide your dealership — or your family — with opportunities to diversify your portfolio and generate additional returns. Smith: Truist can connect dealers with commercial real estate specialists to help determine the best way to enhance the value of your property and to work with your municipality on zoning and permitting. We’ll look at various ways to structure financing to achieve your project goals, minimize risk and cover all the angles — at each stage. If you’re thinking about a construction project, talk to someone on the Truist Dealer Services team who can assemble Truist resources to bring you the perspective and expertise you need. Visit us at Truist.com/DealerServices. Truist Bank, Member FDIC. ©2023 Truist Financial Corporation. Equal Housing Lender. ONE LAST THING ... Did you know that you can enjoy your association news anytime, anywhere? Scan the QR code or visit: dealers-choice.thenewslinkgroup.org Check it out! The new online article build-outs allow you to: • Stay up to date with the latest association news • Share your favorite articles to social channels • Email articles to friends or colleagues There is still a flipping book for those of you who prefer swiping and a downloadable PDF. DEALERS’ CHOICE 54
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