Investment Strategy | NAV Capital Partners

The Thesis

Why R-75 → RSM Creates Value

DeKalb County's Northern Avenue corridor contains large R-75 parcels — single-family zoning — that are dramatically undervalued relative to their RSM rezoning potential. The RSM (Residential Small-Lot Mixed) designation enables townhome density, which commands 3–5× the per-unit land pricing that national builders pay. NAV Capital's edge is the ability to identify, control, and rezone these parcels faster than institutional competitors.

Zoning Comparison

R-75 vs. RSM: By the Numbers

Category	R-75 (Current)	RSM (Target)
Permitted Use	Single-family detached only	Townhomes, rowhouses, small-lot SF
Min. Lot Size	7,500 sq ft per unit	1,800–2,400 sq ft per unit
Typical Density	4–6 units per acre	14–18 units per acre
Land Value (per acre)	$150K–$220K	$600K–$900K
Builder Demand	Low — limited builder appetite	High — Millrose, DRB, DR Horton active
Exit Strategy	Retail/individual sale only	Institutional builder exit — bulk purchase
Comparable Exit (Northern Ave)	N/A	$6M+ — Inline Communities comp
Value Creation	—	3–5× appreciation through rezoning

Execution

The RSM Playbook: Step by Step

Our repeatable 4-step process transforms undervalued R-75 land into premium entitled builder sites.

Identify & Control

Source adjacent R-75 parcels in Northern Ave corridor through off-market outreach. Execute option contracts or purchase agreements to control land below market value.

Assemble & Survey

Consolidate multiple parcels into a single entitle-able assemblage. Commission boundary surveys, title searches, and environmental reviews to prepare the rezoning package.

Rezone to RSM

File RSM rezoning application with DeKalb County Planning Department. Engage community input sessions. Coordinate with county staff to achieve approval for townhome density.

Execute Builder Exit

Deliver fully entitled RSM land package to Tier 1 builder. Close at $6M+ valuation based on Inline Communities comparable. Distribute proceeds per operating agreement.

Market Validation

Inline Communities — The Comparable That Defines Our Exit Price

The Inline Communities transaction on Northern Avenue in DeKalb County is the most important data point in our underwriting. A comparable assemblage of R-75 parcels — rezoned to RSM for townhome development — transacted at approximately $6 million. This is not a projection. It is a closed transaction on the same street as our active pipeline.

This comparable validates three things: (1) DeKalb County approves RSM rezoning on Northern Ave; (2) National builders buy entitled townhome sites here; (3) The exit price is $6M+ for a comparable assemblage. Our job is to replicate this transaction at 712, 700, and 686 Northern Avenue.

$6M Closed
Comparable

Builder Relationships

Exit Buyer Priority List

Our exit strategy targets builders with proven Georgia activity, active townhome programs, and appetite for entitled land packages.

Millrose Properties

Publicly traded land spinoff from D.R. Horton — buys entitled lots at scale

Primary

DRB Group

Active townhome builder in DeKalb County — direct market overlap

Primary

D.R. Horton

Largest US homebuilder — consistent Georgia land buyer

Secondary

Lennar Corporation

National builder with Atlanta townhome presence

Secondary

NVR / Ryan Homes

Light-land model builder — strong Southeast expansion

Tertiary

Smith Douglas Homes

Georgia-based attainable housing builder