The importance of forming relationships with influential private and public stakeholders as part of the acquisition process becomes even more important for the development process. Not only do most large fund managers lack the patience to invest in these relationships, but also they beholden to “beat the pref” and, therefore, lack any incentive to invest the time to establish them. The unfortunate consequence of this reality is that unlocked entitlement value is never harvested, which is the best opportunity for financial reward in a development transaction.

By keeping investor preferred returns low, Henna can invest in new markets and still allocate the time to form the critical relationships with community business leaders, city planners, mayors, council persons, the Chamber of Commerce, the Convention and Visitors Bureau, and even local activists to ensure the maximum and best use and value of the land is ultimately delivered to all stakeholders. Of course, in Henna’s home markets these relationships are already in place. In addition, a major part of our local partner screening process is gauging the strength of the local partner’s relationships.

“Patience is a Virtue” and “Persistence gets the job done” are both maxims that equally apply to the development process. Managing their inherent dissonance is the secret to effective development that will produce social and economic vitality for Henna’s public stakeholders, as well as monetary and personal fulfillment for its partners.