ILLUSTRATIVE SAMPLE — NOT A REAL CLIENT, PROPERTY, OR OFFER. A fabricated engagement built to demonstrate Rook's representation and deal-analysis work product. Sites, tenants, and figures are invented; market data is sourced and cited. Not investment, legal, or tax advice.
ROOK
BUYER REPRESENTATION & SITE SELECTION · REAL ESTATE DEAL ANALYSIS & FINANCIAL MODELING
Buyer Representation & Site Selection — The Ironbend Yard Allapattah, Miami · T6-8-O · 1.4200 acres
Rook represents the buyer — Vela Ridge Development Partners, LLC · site selection, highest & best use, and land residual · prepared 2026-08-07
Brokerage services through Aterra Real Estate Partners, LLC · v02 — role-language revision of the 2026-08-06 v01; no analysis re-run.
SUBMARKETAllapattah, City of Miami
RECOMMENDED BID$5,750,000
DEVELOPMENT SPREAD+116 bps
PROGRAM212 units · Live Local
§1 · Investment Highlights
Seven programs on one parcel. Five cannot clear their hurdle even if the land is free.
The residual is the bid. $6,354,484 walk-away against an $8,250,000 ask — a 22.98% gap that is arithmetic, not posture.
The envelope is not the constraint. T6-8-O permits 309,275 SF of floor area; the rent tape supports 175,621. 43.2% of the base entitlement is left unbought.
Live Local is a 4% rent haircut, not 30%. The FHFC 120% AMI ceiling is $3,145.50; market rent is $2,835.00, so the 90%-of-market limb binds.
$289,170 of rent given up buys $311,441 of tax relief — plus administrative approval, a statutory parking cut, and the density cap.
Self-performance is worth 29 bps. 6.3113% on the effective basis against 6.0194% gross — a quarter of the required spread.
Escalation is 65.3% of the cost of delay. $286,026 a month, of which $186,818 is Miami cost escalation, not carry.
Stabilized NOI
$4.19M
$19,741 per unit · 212 units
Yield on cost — effective
6.3113%
vs a 6.25% committee floor
Development spread
+116 bps
over a 5.150% exit cap
Land residual
$6.35M
$102.73/SF · $29,974 per entitled unit
§2 · Executive Thesis
Miami is the best apartment market in the South and it currently cannot be built in.
Miami metro carried the lowest multifamily vacancy among large South Region metros in March 2026 — 6.6%, against Orlando 7.3%, Atlanta 7.8%, Houston 8.7%, Tampa 8.8%, Dallas 9.0%, Charlotte 9.3% — and the only positive rent growth in the peer set at +0.7% (MIAMI REALTORS, 2026-04-20). First-quarter net absorption rose 40% year over year (Marcus & Millichap, 2Q26). And inventory growth is projected at 1.6% in 2026, the slowest pace in a decade.
Those facts explain each other rather than contradicting each other. Starts are collapsing in the strongest apartment market in the country because vertical cost, a 2% millage against a 5% capitalization rate, and land still priced off 2021 comparables have closed the development spread. This engagement is therefore not a search for a good location. It is a search for the specific structural exception where the arithmetic still closes.
The exception is the 2026 Live Local Act. s. 196.1978(3), Fla. Stat. exempts 75% of the assessed value attributable to units serving households between 81% and 120% of AMI, in a development with at least 71 such units, provided gross rent does not exceed the lesser of the Florida Housing chart limit or 90% of fair-market rent. In Allapattah the chart limit sits above the achievable market rent — so the binding constraint is 90% of market, a 10% haircut on 40% of the units, and the exemption is worth more than the rent it costs.
What the client asked
Vela Ridge Development Partners, LLC (fabricated) has been outbid on six Miami-Dade sites in eighteen months by buyers underwriting to yields it does not believe. The question was not which site to buy. It was whether there is a price at which any of them works, and what that price is.
What the analysis answers
Three of four candidate parcels have no land residual at all — no positive bid at any price, including zero. The fourth supports $6,354,484 against an $8,250,000 ask. The recommendation is a $5,750,000 opening bid, and a willingness to walk at $6,354,484.
§3 · The Client & the Mandate
A builder that develops, not a developer that hires a builder.
Vela Ridge Development Partners, LLC (fabricated)
Mid-sized private construction and development group, Miami-Dade. ~$180M delivered since 2014: four multifamily communities totalling 511 units, two flex-industrial buildings, one mixed-use redevelopment. Self-performs general contracting through Vela Ridge Builders, LLC. Principals, one family office, a small club of repeat co-investors. No fund, no deployment deadline, no obligation to buy.
The structural edge
The 7.0% of hard cost the construction affiliate retains — a 5.0% GC fee plus a 2.0% general-conditions margin, net of the GMP audit credit — is a return of the sponsor's own capital, not a payment to a third party. Both yields are reported: gross, which is what a construction lender sizes to, and effective basis, which is what the sponsor earns on dollars actually at risk.
The four gates
Hurdle
Floor
Achieved
Yield on cost, effective basis
6.25%
6.3113%
Development spread over exit cap
110 bps
+116 bps
Margin on cost
15.00%
16.88%
Equity multiple
1.35×
1.422×
Why 110 bps and not 200. A spread floor states what the capitalization rate can do while you build. At 110 bps, a 110-basis-point widening between today and stabilization delivers the project at cost and returns the equity rather than losing it. Requiring 200 bps in this market is a decision to stop developing — legitimate, but it should be made explicitly rather than smuggled in through a hurdle rate.
Deal-breakers, fixed before any site was toured
Rezoning, land-use amendment or a quasi-judicial hearing required
Off-site utility infrastructure required
Entitlement contingency shorter than 240 days
Assignment to a single-purpose entity or capital partner restricted
Open environmental enforcement or long-term monitoring
A submarket whose rent tape fails at a zero land basis
§4 · Market State
The six numbers the deal is made of.
Rent
Geography
Asking rent
$/SF/mo
Miami metro (891 SF avg)
$2,770
$3.1089
Wynwood
$3,472
$3.8967
Midtown–Edgewater
$3,439
$3.8597
Allapattah
$2,542
$2.8530
Underwritten, new construction
$2,835
$4.0500
RentCafe, as of 2026-08-01, retrieved 2026-08-06. Neighborhood figures normalized to the 891 SF metro average unit. The underwritten rent is the Allapattah stock rate × 1.42 — 104% of Wynwood's blended average and 30% above the metro blend.
Concessions are hidden rent
16.5% of stabilized US units offered a concession in June 2026 at a depth of 11.1% of annual lease value — the highest since the late 1990s; Class A carried the deepest at 11.4% (RealPage via CRE Daily, 2026-07-10). The model carries 6.6% vacancy + 2.5% stabilized concession + 0.5% credit = 9.6% economic loss.
Cost
Input
Value
RLB Miami multifamily band, Q1 2026
$190–$290/SF
Underwritten (Type IIIA over podium)
$196/SF
Structured parking
$58/SF
Miami escalation, RLB Q2 2026
4.99% / yr
Escalation over 26 months
11.1272%
Construction loan, quoted band
5.50%–8.75%
Underwritten rate / LTC
7.15% / 60%
Exit capitalization rate
5.150%
City of Miami combined millage
19.9878 mills
Insurance, coastal Miami-Dade band
$2,200–$2,800/unit
Underwritten (new HVHZ concrete)
$2,050/unit
Property tax is the Florida development problem. At 85% assessed value, 19.9878 mills and a 5.15% cap, 0.85 × 0.0199878 ÷ 0.0515 = 0.3299 — 33 cents of every dollar of NOI, before the exemption. Larger than payroll, insurance, utilities, maintenance and management combined.
§5 · The Parcel & the Envelope
The zoning envelope permits a building the market cannot pay for.
Parameter
Standard, T6-8-O
Program uses
Headroom
Site area
—
61,855 SF · 1.4200 ac
Two contiguous fabricated folios
Density
150 du/acre → 213 units
212 units
One unit off the cap, for the podium module
Floor Lot Ratio, base
5.0 × lot = 309,275 SF
175,621 SF — FLR 2.84
43.2% left unbought
FLR with public-benefit bonus
+25% = 386,594 SF
not pursued
—
Height
8 stories
5 stories
3 stories
Parking, Miami 21 base
1.5/unit + 1 visitor per 10
339 spaces
—
After the 30% transit-corridor Waiver
within ¼ mile of a Transit Corridor
237 spaces
—
Underwritten, Live Local reduction stacked
—
148 spaces · 0.70/unit
To be confirmed by zoning verification letter
Miami 21 standards from miami21.org, "Specific to T6 Zones" and "T6 Parking & Landscape," retrieved 2026-08-06. The parcel, its addresses and folio numbers are fabricated.
Between the Miami 21 base requirement and the underwritten ratio lies $3.8 million of hard cost and roughly 45 basis points of yield. A site outside a transit corridor is not marginally worse. It is a different deal.
§6 · Site Matrix
Four candidates. Three have no land residual at any price.
Site
Submarket · zoning
Site area
Ask
$/SF land
YoC at ask
Spread
Land residual
Score
A · Ironbend Yard
Allapattah · T6-8-O
61,855 SF
$8,250,000
$133.38
6.0608%
+91
$6,354,484
83.2
C · Wynwood Norte Yard
Wynwood Norte · T6-12-O
34,412 SF
$11,600,000
$337.09
4.9221%
−3
$2,398,293 (−79.3%)
54.8
B · Palmetto Junction
Medley · IU-2 industrial
135,036 SF
$5,900,000
$43.69
4.4134%
−134
none
52.8
D · Bird Road Commons
Olympia Heights · BU-2 (rezoning)
97,574 SF
$8,400,000
$86.09
3.7136%
−174
none
28.1
Why the three lose
C · Wynwood Norte — the best rent in the set ($4.55/SF) and the worst geometry. At 0.79 acres the ramp eats the footprint and a 12-story envelope forces Type I concrete at $238/SF. It sells FLR 8.0 and can finance FLR 2.84. Residual is 79.3% below the ask: the dirt should be bought by a condominium developer.
B · Palmetto Junction — fails at a zero land basis (6.442% against a 6.850% requirement), into a market with 2.8M SF under construction at 15.6% preleased (Newmark 2Q26), and outside the client's platform. Three independent rejections.
D · Bird Road Commons — the cheapest land and the least valuable. At a zero land basis the program yields 4.461% against a 5.450% exit cap: the finished building is worth less than it cost with the land free. Plus 1.50 spaces per unit and 28 months of discretionary entitlement.
Seven programs, four tests, one parcel, one land basis of $5,750,000. The ranking on the fourth test is not a judgment — it is a land residual.
Program
Stabilized NOI
Total dev. cost
YoC gross
YoC effective
Exit cap
Spread (bps)
Verdict
3 · Live Local mixed-income rental
$4,185,001
$69,525,286
6.019%
6.311%
5.150%
+116
HIGHEST & BEST USE
1 · Conventional market-rate rental
$3,575,036
$66,295,924
5.393%
5.649%
5.150%
+50
Feasible, not maximally productive
2 · Live Local rental + retail
$3,791,352
$72,435,028
5.234%
5.480%
5.264%
+22
Feasible, destroys 94 bps
6 · Industrial / flex
$670,248
$18,305,644
3.661%
3.786%
5.750%
-196
Fails Test 1 (use not permitted)
7 · Select-service hotel
$1,993,006
$70,449,459
2.829%
2.949%
8.500%
-555
Fails Test 3
5 · Self-storage (Exception)
$669,548
$44,088,960
1.519%
1.581%
6.250%
-467
Fails Test 3
4 · Townhome-for-sale
$26,439,107
$36,786,186
—
—
—
-28.13%*
Fails Test 3
* Program 4 is for-sale: the metric is margin on cost, not a yield. Program 6 (industrial) is excluded at Test 1 — not a permitted use in a T6 transect — and its economics are computed only to size what the legal constraint costs. The answer is nothing: it fails Test 3 by 196 bps on its own.
3 · Live Local mixed-income
+116 bps
212 units at the density cap. 85 units (40.1%) at ≤120% AMI, clearing the 71-unit s. 196.1978(3) minimum by 14. Administrative approval, 0.70 spaces per unit, 75% ad valorem exemption on the set-aside.
1 · Conventional rental
+50 bps
186 units, no set-aside, no exemption, 1.12 spaces per unit, 10-month entitlement. Feasible — the building is worth more than it cost — and its land residual is $208,225, three cents on the dollar of the ask.
2 · Mixed-use with retail
+22 bps
172 units plus 14,500 SF of ground-floor retail. Destroys 94 bps of spread. No land residual at any price — the retail is the reason. See §9.
The rent restriction is not what it sounds like
Line
Amount
Derivation
Market rent
$2,835.00 /mo
700 NRSF × $4.05/SF
FHFC 120% AMI ceiling, blended 1.25-person household
$3,145.50 /mo
($94,400 × 0.75 + $136,200 × 0.25) × 1.20 × 30% ÷ 12 — City of Miami limits eff. 2026-05-01
Binding limb: 90% of fair-market rent
$2,551.50 /mo
The chart limit is inoperative here. A 10% haircut, not 30%.
Annual rent given up (85 units)
$289,170
$7,212,240 unrestricted − $6,923,070 restricted
Annual ad valorem relief
$311,441
$1,277,871 unexempted tax − $966,430 exempted
Net NOI effect of the trade
+$22,271
Plus administrative approval, the parking cut, and the density cap
§8 · Yield Bridge
Why Program 3 beats Program 1, one lever at a time.
The Live Local structure is net +16 bps, not +46. The rent give-up costs 30 before the exemption pays 46. Any analysis quoting the exemption without the give-up is quoting half a trade.
The parking reduction beats the density increase — 20 bps against 15. That is why "within ¼ mile of a Transit Corridor" is a hard screen and not a preference.
Administrative approval is worth 15 bps on schedule alone, before counting the discretionary denial risk it removes, which has no basis-point equivalent.
§9 · Ground-Floor Retail, Isolated
$759.62 per square foot to build. $420.31 per square foot when finished.
Gross rent @ $32.00/SF NNN — 75% of the $42.50 Miami-Dade average asking
$464,000
Less 12% structural vacancy and 3% non-reimbursable
($67,930)
RETAIL NOI
$396,070 — $27.32/SF
Retail exit capitalization rate
6.500%
RETAIL YIELD ON COST
3.5959%
RETAIL SPREAD
−290 bps
Every square foot of it destroys $339.31 of value, and it costs the blended program 94 basis points of development spread. Ground-floor retail is underwritten into mixed-use projects because lenders like the diversification and planners like the streetwall — not because it earns anything. Where a guideline compels a commercial frontage, build the minimum and price the concession explicitly. On this parcel nothing compels it.
§10 · Development Budget
$69,525,285 · $327,949 per unit · $203.35 per square foot of gross building area.
Hard cost
Amount
Residential GBA 175,621 SF @ $196/SF
$34,421,775
Structured parking 50,320 SF @ $58/SF
$2,918,560
Sitework, civil, demolition & offsite
$1,850,000
Environmental — Phase II & DERM closure
$185,000
Subtotal, today's pricing
$39,375,335
Hard contingency @ 5.0%
$1,968,767
Escalation @ 4.99%/yr over 26 months = 11.1272%
$4,600,457
TOTAL HARD COST
$45,944,559
Escalation is reasoned, not assumed.(1 + 0.0499)^(26/12) − 1 = 11.1272% — the RLB Miami rate compounded over the program's own schedule: 7 months of administrative entitlement, 7 of permitting, 12 to the construction midpoint. It adds $4,600,457, more than three-quarters of the land price. Contingency sits beneath escalation, not on top: contingency covers scope drift, escalation covers the market. Conflating the two is the most common way a development budget understates itself.
Soft cost, fee, land and financing
Amount
Architecture, engineering & consultants @ 5.0%
$2,297,228
Impact, permit & connection fees @ $12,400/unit
$2,628,800
Legal, land-use counsel & entitlement
$840,000
Survey, geotech, Phase I/II, threshold & testing
$640,000
Builder's risk, GL & subguard @ 2.2%
$1,010,780
Tax & insurance during construction
$520,000
Marketing, lease-up & concession reserve
$1,293,200
FF&E, amenity & model units
$1,010,000
Soft contingency @ 5.0%
$512,000
TOTAL SOFT COST
$10,752,009
Developer fee @ 3.75%
$2,126,121
Land
$5,750,000
Loan fee @ 1.0% of a 60% loan
$417,152
Capitalized construction interest
$4,535,445
TOTAL DEVELOPMENT COST
$69,525,285
Less retained self-perform margin @ 7.0% of hard
($3,216,119)
EFFECTIVE BASIS
$66,309,166
Hard cost
$45,944,559 · 66.1%
Soft cost
$10,752,009 · 15.5%
Land
$5,750,000 · 8.3%
Financing
$4,952,596 · 7.1%
Developer fee
$2,126,121 · 3.1%
§11 · Land Residual
The residual is the disciplined bid. The asking price is information about the seller.
STEP 1 Stabilized net operating income $4,185,001
STEP 2 Required yield on cost = 5.150% exit cap + 110 bps floor 6.2500%
STEP 3 Maximum supportable effective basis = NOI / required yield $66,960,013
STEP 4 Add back retained self-perform margin (7.0% of hard cost) $3,216,119
STEP 5 Maximum supportable total development cost $70,176,132
STEP 6 Financing load = (0.60 x 1.0% fee) + 6.5234% interest ratio 7.1235%
STEP 7 Maximum cost before financing = Step 5 x (1 - 0.071235) $65,177,121
STEP 8 Less total hard cost ($45,944,559)
Less total soft cost ($10,752,009)
Less developer fee ($2,126,121)
---------------------------------------------------------------------
LAND RESIDUAL $6,354,484
Asking price
$8.25M
$133.38/SF · $38,915 per entitled unit · yields 6.0608%, +91 bps — fails
Land residual — walk-away
$6.35M
$102.73/SF · $29,974 per unit · −22.98% to ask
Recommended opening bid
$5.75M
$92.96/SF · $27,123 per unit · −30.30% to ask
Negotiating room
$604,484
Reserve against the Phase II scope and the parking determination
Land residual by program
Program
Required YoC
YoC at a zero land basis
Land residual
vs. the ask
3 · Live Local mixed-income rental
6.250%
6.973%
$6,354,484
-22.98%
1 · Conventional market-rate rental
6.250%
6.275%
$208,225
-97.48%
2 · Live Local rental + retail
6.364%
6.046%
none
no bid at any price
6 · Industrial / flex
6.850%
5.910%
none
no bid at any price
5 · Self-storage
7.350%
1.884%
none
no bid at any price
7 · Select-service hotel
9.600%
3.273%
none
no bid at any price
4 · Townhome-for-sale
18.00% margin
-28.13% margin
none
no bid at any price
Program 3's residual is the workbook's live closed-form solve. An independent cross-check that re-runs the full month-by-month construction draw at every candidate land value returns $6,344,746 — a 0.15% variance arising because the closed form holds the capitalized-interest ratio constant. Disclosed, not reconciled away.
Five of seven programs cannot clear their hurdle even if the land is free. That column is the state of the Miami development market in August 2026, and it is why finding and proving the parcel is the product rather than a supporting document.
§12 · Sensitivity
Where the deal breaks.
Grid 1 — hard cost per SF × exit capitalization rate · development spread in bps
Hard cost $/SF \ Exit cap
4.65%
4.90%
5.15%
5.40%
5.65%
$176
+200
+182
+164
+144
+125
$186
+176
+158
+139
+120
+100
$196
+154
+135
+116
+97
+77
$206
+133
+114
+95
+75
+55
$216
+113
+94
+75
+55
+35
Grid 2 — market rent per NRSF × hard cost per SF · effective-basis yield on cost
Market rent $/NRSF \ Hard cost $/SF
$176
$186
$196
$206
$216
$3.65
5.952%
5.736%
5.536%
5.349%
5.175%
$3.85
6.368%
6.138%
5.924%
5.724%
5.537%
$4.05
6.785%
6.540%
6.311%
6.098%
5.899%
$4.25
7.202%
6.941%
6.699%
6.473%
6.262%
$4.45
7.619%
7.343%
7.087%
6.847%
6.624%
Green clears the 6.25% floor. Red is below the 5.150% exit cap — the building would be worth less than it cost.
Grid 3 — land price
Land price
$/SF land
$/entitled unit
Total dev. cost
YoC effective
Spread (bps)
$3,500,000
$56.58
$16,509
$67,063,053
6.5547%
+140
$4,500,000
$72.75
$21,226
$68,157,379
6.4443%
+129
$5,750,000
$92.96
$27,123
$69,525,286
6.3113%
+116
$6,344,746
$102.57
$29,928
$70,176,131
6.2500%
+110
$7,250,000
$117.21
$34,198
$71,167,379
6.1588%
+101
$8,250,000
$133.38
$38,915
$72,266,024
6.0608%
+91
$9,500,000
$153.58
$44,811
$73,639,329
5.9426%
+79
Rent is the deal. At $3.85/SF the land is worth nothing; at $4.25/SF it is worth roughly $11 million. That is why a live engagement replaces the portal average with a unit-type-level survey of the five closest lease-ups before the second deposit goes hard.
§13 · Entitlement & Delay Carry
$286,026 a month — and 65.3% of it is escalation, not carry.
Hard-cost escalation @ 4.99%/yr on the escalated base
$186,818
65.3%
TOTAL COST OF ONE MONTH OF DELAY
$286,026
100%
The entitlement path
Path
Months
Risk
Live Local administrative approval (underwritten)
7
Ministerial — no rezoning, no hearing, no commission agenda
Miami 21 conventional, warrant + waiver
10
Administrative, longer
Rezoning + comprehensive-plan amendment
22–34
Discretionary, with denial risk — a deal-breaker
Three months between the administrative and conventional paths is worth $858,078 — fifteen per cent of the land price.
Delay
Total dev. cost
YoC eff.
Spread
Result
Cumulative cost
Base case
$69,525,286
6.3113%
+116
Clears
$0
+3 months
$70,497,969
6.2237%
+107
Below the 110 bps floor
$972,683
+6 months
$71,478,920
6.1378%
+99
Below the 110 bps floor
$1,953,634
+9 months
$72,468,241
6.0536%
+90
Below the 110 bps floor
$2,942,955
+12 months
$73,466,034
5.9709%
+82
Below the 110 bps floor
$3,940,748
+18 months
$75,487,452
5.8103%
+66
Below the 110 bps floor
$5,962,166
+24 months
$77,544,019
5.6555%
+51
Below the 110 bps floor
$8,018,733
The deal survives ninety days of slippage and not much more. Twelve months of delay costs 34 basis points — more than the entire value of the sponsor's self-performance edge. So the LOI buys schedule from the seller rather than from the market: a 240-day entitlement contingency with three priced extensions of 45, 45 and 60 days at $150,000, $200,000 and $300,000 — 34.96%, 46.62% and 52.44% of the cost of the delay each one purchases, and every dollar credited against the purchase price at closing. The buyer is indifferent to using them; the seller is paid for certainty.
§14 · Risk Register & Recommendation
What can still move the residual, and by how much.
Risk
Exposure
Mitigation in the LOI or the diligence plan
Parking determination
The largest single unresolved item. The underwriting does not survive a ratio above 0.95 spaces/unit
Entitlement Approval No. 4 — written parking determination required before the contingency is waived
Achievable rent
$0.20/SF moves the residual by ~$2.2M
Unit-type-level survey of the five closest lease-ups inside the 90-day feasibility period
Hard cost
$10/SF moves the spread by ~19 bps
Three GMP proposals — the sponsor's affiliate and two third-party bidders — with audit rights on the 7.0% retained margin
Live Local exemption persistence
$311,441/yr of NOI; ~$6.05M of exit value if a buyer discounts it entirely
FHFC certification pre-check plus a Property Appraiser conference before the second deposit goes hard. Annual recertification required; the local appraiser makes the final determination
Environmental / DERM
$185,000 carried; a former metal-fabrication yard
Phase II inside feasibility; dollar-for-dollar price reduction up to $600,000 of excess; termination right above it
Entitlement schedule
$286,026 per month; 90 days of cushion
240-day contingency with three priced extensions, each credited to price
Exit capitalization rate
25 bps of widening costs ~19 bps of spread
The 110 bps spread floor exists to absorb exactly this
Impact-fee estimate
$7,762/unit of the $12,400 is an allowance, not a citation
Written estimate from the Miami-Dade Impact Fee Section; flagged in the workbook audit tab
Recommendation. Acquire the Ironbend Yard at an opening bid of $5,750,000 — $92.96 per square foot of land, $27,123 per entitled dwelling unit — with a walk-away at $6,354,484. Build 212 units under the Live Local Act structure: five stories of Type IIIA over a single-story concrete podium, 700 net rentable square feet average, 148 parking spaces at 0.70 per unit, 85 units reserved at or below 120% of area median income. Ninety-day feasibility period, 240-day entitlement contingency, three priced extensions, unqualified assignment rights. If the seller will not clear the residual, walk.
The gap between the asking price and this bid is not a view about Allapattah, which is one of the better places in Miami-Dade to be delivering housing in 2029. It is the measured distance between a land market still priced off 2021 comparables and a development budget priced off 2026 costs — and the discipline that closes it is the willingness to publish the residual, bid it, and walk.
§15 · Scope, Role & Disclosures
What Rook is doing on this engagement, and what it is not.
Licensed buyer representation
Rook provides buyer representation and site-selection advisory as licensed real estate brokerage services through Aterra Real Estate Partners, LLC, a licensed Florida real estate brokerage. Spencer Bomstein is a licensed Florida real estate sales associate (license SL3433067); all brokerage activity is conducted through and supervised by the brokerage. Brokerage compensation is fully negotiable — there is no standard, customary or prevailing rate, and none is stated or implied anywhere in this package.
Analysis: included, or standalone
The highest-and-best-use analysis, the feasibility work, the land-residual model and the development proforma are real estate deal analysis and financial modeling. Where Rook represents you, they are included in the representation engagement and are not billed separately. The same work can be contracted on its own, without representation, for a flat fee — in which case it is not a brokerage service.
Search-side only
Rook represents buyers. It does not take listings and does not represent sellers. That is a business commitment about the engagements Rook accepts, not a statutory duty owed under Florida brokerage law.
Brokerage relationship
Under Florida law a licensee is presumed to operate as a transaction broker unless a single agent relationship or no brokerage relationship is established in writing. The relationship is established in writing at the time of engagement, and the applicable disclosure is delivered then. Nothing here asserts fiduciary duties or undivided loyalty.
The land residual is not an appraisal. Rook does not issue USPAP-compliant appraisals. The $6,354,484 residual is a feasibility-driven bid derivation — the price at which the client's own program, cost basis and 6.25% required yield on cost are exactly satisfied, solved backwards. It is not an opinion of market value, it was not developed under USPAP, and it must not be relied on, cited or represented as an appraisal. Where an opinion of market value is required, engage a state-certified appraiser.
Rook does not perform investment-advisory or asset-management services and does not prepare private placement memoranda. Nothing here is legal, tax or accounting advice. Vela Ridge Development Partners, LLC, Vela Ridge Builders, LLC, the four candidate parcels, their owners, addresses, folio numbers and asking prices are fabricated; market data are drawn from named public sources with retrieval dates of 2026-08-06.
