Land Acquisition Managers are the “tip of the spear” when it comes to homebuilding and real estate development. Every house, apartment, or commercial building must be built upon a plot of land, and before any vertical construction can get going, someone has to go out, find land, purchase it and get it entitled. After years of entitlement work, that piece of land then moves through the development process (ie it is surveyed, broken into lots, graded, outfitted for dry and wet utilities) before it finally is ready for building construction to begin. So Land Acquisition is a crucial component to keeping any developer’s project pipeline full. These land deals predate construction of new homes or apartments by years. Buy too little land, the builder or developer is behind competitors in being able to bring to market viable housing projects; buy too much land or overpriced land, and the builder or developer risks going bankrupt. It’s a tight rope to walk, and it all falls on the shoulder of these individuals – part salesman, part financial accountant, and part legal expert. In this blog post, we will discuss the role of a Land Acquisition Manager, the types of companies that typically hire them, sample company names, the basic career path in Land Acquisition, and the challenges and business cycles associated with the job. We will also provide insight into the local and regional differences of acquiring land to build on in different states or regions.
Role of a Land Acquisition Manager
The Land Acquisition Manager is responsible for identifying new land acquisition opportunities that align with the business plan goals of the region. They use a variety of tools and techniques to gather information on specific sites or areas, including online appraisal district maps and municipal maps. This information includes utilities, zoning, topography, entitlement status, and other development-related information that can be used to assess each site. The Land Acquisition Manager also maintains a tracking log of viable tracts and comparable transactions and follows municipal agendas weekly to understand what active projects an acquisition opportunity for may be partially entitled, fully entitled, or finished lots.
One of the essential functions of a Land Acquisition Manager is to establish relationships based on integrity throughout the real estate community. This includes landowners, brokers, municipal employees, engineers, developers, attorneys, land planners, and other stakeholders. They attend networking events to generate new contacts and source deals, and they follow up on leads through relationships and news gathered from a variety of media sources.
Due diligence is an essential part of the Land Acquisition Manager’s job. They assist with zoning requirements, architectural requirements, utility availability, surveys, title work, rollback tax estimations, soil reports, financial analysis, environmental reports, work proposals, preliminary engineering, and land planning. They use tools like Google Earth and other mapping tools to create exhibits and track land opportunities, incorporating utility information, floodplain, and net acreage into map exhibits.
The Land Acquisition Manager also assists the land team with the preparation of financial proformas, plugging in assumptions including timing, pricing, product lineup, sales pace, municipal fees, and other costs associated with development to determine the viability of proposed land acquisitions and appropriate offer prices. They update and maintain proformas as assumptions change and populate CMA’s to help understand how the proposed product line up and pricing compares to other communities in the market area. They also create reports from market research resources such as Zonda, Metrostudy, and other data resources to help determine consumer’s product preferences.
Finally, the Land Acquisition Manager assists in the preparation of LOI’s based on the terms discussed with acquisition leadership. They also prepare detailed land packages with relevant support data and exhibits for submittal to the Asset Management Committee to seek approval of real estate transactions. They also prepare update memos during the acquisition period as well as during development and post-closing.
Companies that Typically Hire Land Acquisition Managers
Land Acquisition Managers are typically employed by real estate development companies, home builders, and construction companies. These companies are focused on acquiring land and developing it for commercial or residential use. Some of the top companies that hire Land Acquisition Managers include:
Toll Brothers
Lennar Corporation
D.R. Horton, Inc.
PulteGroup, Inc.
KB Home
Basic Career Path in Land Acquisition
After gaining experience in the role of a Land Acquisition Manager, there are several potential career paths available. One option is to advance within the company to a more senior position, such as a Director of Land Acquisition or a Vice President of Land Acquisition. In these roles, individuals would be responsible for overseeing multiple regions and managing a larger team of Land Acquisition Managers. They would also be responsible for setting overall land acquisition strategy and goals for the company, as well as negotiating larger and more complex land deals.
Another potential career path is to move into a related field, such as real estate development or real estate finance. For example, some Land Acquisition Managers may transition into roles as Development Managers, overseeing the planning, design, and construction of new developments. Others may move into roles in real estate finance, such as Asset Managers or Investment Analysts, where they would be responsible for managing the financial performance of real estate assets. When builders and developers are not buying land, these individuals will often work directly for land brokers, land developers or land bankers and help their former employers offload excess supply via land dispositions.
Regardless of the career path chosen, continued education and networking are important for career advancement in land acquisition. Many Land Acquisition Managers choose to pursue advanced degrees, such as an MBA, a Juris Doctorate (JD) or a Master’s in Real Estate Development, to gain a deeper understanding of real estate finance, law and strategy. They may also seek out professional certifications, such as the Certified Commercial Investment Member (CCIM) or the Society of Industrial and Office Realtors (SIOR), to demonstrate expertise in their field.
Networking is also important in land acquisition, as it can help individuals to identify new opportunities and build relationships with industry professionals. Land Acquisition Managers may join professional organizations, such as the Urban Land Institute (ULI) or the National Association of Home Builders (NAHB), to connect with others in their field and stay up-to-date on industry trends and best practices.
Overall, the career path for a Land Acquisition Manager is one that offers many opportunities for advancement and growth. With a strong understanding of real estate finance and strategy, as well as excellent communication and negotiation skills, individuals in this role can make a significant impact on the success of their companies and the communities they serve.
Additional Resources:
1. Urban Land Institute (ULI) – The ULI is a nonprofit organization that provides education and research on land use and real estate development. Their website includes articles, reports, and events related to land acquisition and real estate development.
2. National Association of Home Builders (NAHB) – The NAHB is a trade association for the home building industry. Their website includes resources and events related to land acquisition and residential development.
3. International Right of Way Association (IRWA) – The IRWA is a professional association for individuals involved in land acquisition and right of way. Their website includes education and networking opportunities for members.
4. Zillow Research – Zillow is a real estate website that provides data and analysis on the housing market. Their research section includes reports and articles on topics related to land acquisition and real estate development.
5. Metrostudy – Metrostudy is a provider of data and analysis on the housing market. Their website includes reports and analysis on land acquisition and residential development trends.
6. National Association of Realtors (NAR) – The NAR is a trade association for real estate agents and brokers. Their website includes resources and events related to land acquisition and real estate development.
7. Real Estate Development Matrix – The Real Estate Development Matrix is a tool developed by the ULI that provides an overview of the real estate development process, including land acquisition.
8. Harvard Joint Center for Housing Studies – The Joint Center for Housing Studies at Harvard University conducts research and provides analysis on the housing market. Their website includes reports and articles related to land acquisition and residential development.
These resources can provide valuable insights and information for individuals looking to learn more about land acquisition and real estate development.
About TalentWoo Real Estate Staffing
The real estate recruiters and headhunters at TalentWoo have been working with residential builders and developers for well over a decade, and we have a strong network of Land Acquisition professionals in all 50 states. If your company is looking to hire Land Acquisition Managers, or Directors of Land Acquisition please give us a call. We have helped Fortune 500 Homebuilders, large Wall Street Backed single-family and multifamily residential companies, as well as commercial REITs.
