Real Estate | Community Development | Future Opportunities
Developing Vibrant Communities
We are primarily focused on acquisition of real estate for the first and second move-up markets.
Forestar's existing undeveloped land holdings can offer opportunity for future development and value creation. In addition, we focus on the acquisition of real estate for residential and mixed-use master plan communities, primarily for the first and second move-up buyers – the largest segments of the new home construction market. Our investments are either wholly-owned or in ventures and are typically targeted for approximately five year time horizons. Geographically, we concentrate on sunbelt markets, primarily the major markets of Texas, Atlanta, the Carolinas and Nashville. These markets represent the vast majority of the future population and employment growth and resulting demand for new homes over the next 30 years. Our target return hurdles are a 35% return on costs (including an imputed cost of funds), which generally equates to a mid-to-low 20's IRR.
U.S. Estimated Future Population Density Change
Source: Woods & Poole