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Land Assemblage

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Land Assemblage

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A tactic employed in land acquisition, where a real estate professional acquires two or more adjacent parcels, combining them into one. Land assemblage can be a time-consuming, complicated process – with the complexity increasing exponentially depending on the number of parcels and land owners. However, the complex process is worth it when the value of the whole (the combined parcels) is greater than the sum of the value of the parts (the individual parcels).

For example, a residential real estate developer acquires four 50 acres parcels, from four different owners, each worth $100,000 (4 x $100,000). After assembling the 200 acres (50 acres x 4), the new single parcel is worth $500,000.

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