Transit-Oriented Development (TOD)

Many cities throughout the world are developing TOD policy and preparing strategic plans which aim to reduce automobile dependency and increase the use of public transit. As a result, mixed-use residential and commercial areas are being designed that typically have a center with a transit station or stop (train station, subway or rail station, tram stop or bus stop) that is surrounded by relatively high-density development with progressively lower-density development spreading outward from the center.

Vantage Point Real Estate Development Management, LLC senior professionals are well-versed in these TOD’s in which patrons use transit at all times of day. The design of these projects offers excellent pedestrian facilities such as high-quality pedestrian crossings, narrow streets and a tapering of buildings as they become more distant from the public transport node.

Our senior professionals have also responded to the criticism that TOD’s have the potential to spur gentrification in low-income areas. In some cases, TOD can raise the housing cost of formerly affordable neighborhoods and push low- and moderate-income residents farther away from jobs and transit. To counter these concerns, our senior professionals have pointed out that TOD has the potential to benefit low- and moderate-income communities by better linking workers to employment centers, creating construction and maintenance jobs, and encouraging investment in areas that have suffered neglect and economic depression. Further, we have noted that TOD development reduces the overall cost of housing in the region by contributing to housing supply and reducing transportation costs – – both of which can have a greater impact on these households since they spend a larger share of their income on transportation relative to higher-income households.

One of the unique capabilities of our senior professionals is a specialization in public/private development advisory services. These services include the negotiation and problem-solving assistance needed to focus on securing agreements from developers, lenders, property owners, tenants and government agencies involved in TOD projects. Tools used in reaching successful agreements include analyzing market opportunities for TOD projects, undertaking pro forma financial analyses, creating value capture funding strategies, performing economic and fiscal impact evaluations, conducting developer solicitation/evaluation /negotiations, and packaging public/private partnership projects that comprise TOD’s.