Private Residential land‑bank REIT & JV capital platform
Keeping Land Off The Balance Sheet (and Why That Matters)
Balance‑Sheet Friendly by Design
Most public and large private builders are moving toward land‑light models for a reason: tying up excess equity in land hurts returns, leverage metrics, and flexibility.
Our structures are designed to:
- Shift land ownership to Prodigy or a Prodigy‑led vehicle
- Leave you with options or contractual rights to lots, rather than title to the underlying land
- Support accounting treatments (subject to your auditors’ conclusions) that can help keep certain land exposures off your balance sheet or treated differently than direct ownership
The end result: you still have line‑of‑sight to the lots you need over the next 12–60 months, but with less capital intensity, lower holding risk, and greater flexibility if market conditions change.
(Exact accounting treatment depends on your auditors and applicable standards; we do not provide accounting, tax, or legal advice.)
What This Means for Your Business
- More starts with less equity: Recycle capital from dirt into vertical construction and operations.
- Smoother land pipeline: Pre‑planned options and takedowns reduce “feast or famine” land buying.
- Risk‑managed cycle exposure: If the market slows, your option structures and takedown schedules give you more levers than outright land ownership.
- Cleaner story to investors and lenders: You can articulate a clear, land‑light strategy supported by a dedicated land‑bank capital partner.
Structures We Use
Flexible Structures
We don’t believe in forcing every deal into one box. Instead, we use a small set of proven structures that builders already understand.
Lot Option Programs
We acquire and hold the land or finished lots. You receive:
- A call option or series of options on lots within a community
- Pre‑agreed option fees and strike prices
- A schedule that lines up with your targeted starts and closing.
This gives you control without ownership. You secure long‑term lot supply while limiting upfront land spend.
Rolling Takedown Structures
For larger communities or multi‑phase pipelines, we’ll set up a rolling takedown:
- Prodigy closes on the land or larger tract
- You commit to phased lot purchases (monthly, quarterly, or milestone‑based)
- Each takedown is sized to your current sales velocity and financing plan
You avoid a large one‑time land purchase and instead match land spend to actual demand, while still locking up the site and limiting competitive risk.