Investment Opportunities

Conservation Easement Investment Opportunities

Direct Investment & Placement
A basic strategy is for the investor to directly acquire property which is under development pressure but which is suitable for conservation. By following the limited development approach, an investor can generate a return from the ultimate sale of reserved development rights and can also generate tax deductions from the conservation element. While this strategy is most suited to larger projects and requires a longer time frame and more direct involvement, it can be a very beneficial option for an investor or investor group with a high AGI.

Land Exchanges
For an investor involved in 1031 exchange programs, conservation-oriented properties can be particularly attractive. Properties can be identified where the landowner, seeking to create preserved green space but without the ability to effectively realize the economic benefits of doing so, has conducted the required planning and analysis and may even have a conservation easement prepared and appraised. By acquiring this property, the 1031 investor has the option of placing (recording) the easement in the year acquired and realizing the tax benefits in that time frame, or of holding the property to pursue alternative investment strategies.

Other Opportunities
Other types of conservation-oriented investment opportunities may be available as well. Some owners seek to bring partners into their established investments prior to completing a conservation-oriented plan so that the various benefits can be distributed to reflect each partner’s needs and objectives. In other cases, syndicated interests may be acquired in real property investments that are structured to include a conservation-oriented option. These can be attractive to qualified investors who are seeking to participate in what could be a conservation-oriented project but who are targeting smaller and more passive investments.