Advisory - Capital Controls
Pre-Acquisition Construction Feasibility Studies in Charlotte & the Southeast
A land parcel looks like a spreadsheet until a builder walks it. We put real hard-cost and schedule data behind your pro forma before your earnest money is at risk.
What does a construction feasibility study cover before a land purchase? A construction feasibility study evaluates site work and grading conditions, utility capacity, stormwater requirements, zoning and entitlement risk, and realistic hard-cost and schedule assumptions for a specific parcel, producing a go/no-go recommendation and a defensible cost basis before the developer closes on the land.
Most development pro formas are built on assumed costs
By the time a developer engages a general contractor, the land is usually already under contract or closed. That means the hard-cost assumptions baked into the acquisition model were built by a broker's pro forma template, not by anyone who has actually built on comparable ground in that market.
A feasibility study reverses that order. It puts a builder's cost basis, schedule realism, and site-specific risk in front of the developer while the land is still under contract and the earnest money is still refundable.
What we evaluate on the parcel
- Site work and grading Topography, cut-and-fill balance, rock likelihood, and unsuitable soils that can quietly add six or seven figures to site costs.
- Utility capacity and tap fees Water, sewer, and electrical capacity at the parcel, including whether off-site extensions or capacity upgrades will be required.
- Stormwater requirements Detention and water-quality obligations under local and state stormwater ordinances, and the buildable area they consume.
- Zoning overlays and entitlement risk Overlay districts, rezoning timelines, and conditions of approval that affect schedule and buildable program.
- Hard-cost benchmarking Cost-per-square-foot and unit-cost assumptions grounded in current regional construction pricing, not national averages.
- Schedule and carry-cost modeling A realistic construction duration and the carrying cost of capital across that duration, not an optimistic developer's-model timeline.
How we run a feasibility study
1. Site walk and civil review
A JFD representative walks the parcel and reviews available civil, survey, and geotechnical data to identify site conditions the pro forma may not reflect.
2. Utility and jurisdictional inquiry
We confirm utility capacity and tap fee exposure directly with the serving authorities and review the applicable zoning and stormwater requirements.
3. Cost basis build
We build a hard-cost estimate grounded in current regional pricing and comparable project data, not a generic per-square-foot multiplier.
4. Schedule and carry-cost model
We model a realistic entitlement-to-completion timeline and translate that schedule into a carrying-cost impact on the capital stack.
5. Go/no-go recommendation
We deliver a written recommendation with the specific cost, schedule, and entitlement risks that support or undermine the acquisition.
What the owner receives
- A written feasibility report with site, utility, and entitlement findings
- A builder-grade hard-cost estimate for the proposed program
- A schedule and carry-cost model tied to that estimate
- A clear go/no-go recommendation before earnest money becomes non-refundable
Why this matters most for out-of-state capital
A developer based outside the market is relying entirely on secondhand information about site conditions, local utility bureaucracy, and jurisdictional entitlement timelines. A feasibility study replaces that secondhand information with a builder's direct assessment before the land is bought, which is exactly when it's still cheap to walk away.
Answers
Frequently asked questions
How long does a construction feasibility study take?
Most feasibility studies are completed within two to four weeks, depending on the responsiveness of utility authorities and the availability of existing civil and geotechnical data for the parcel.
Should a feasibility study happen before or after signing a land contract?
It should happen during the due diligence period, after the parcel is under contract but while earnest money remains refundable, so the findings can still change the deal terms or trigger a walk-away without financial loss.
Does a feasibility study replace a geotechnical or civil engineering report?
No. A feasibility study incorporates available geotechnical, civil, and survey data into a builder's cost and schedule assessment; it does not replace the engineering studies themselves, and we will recommend commissioning those studies where none exist.
Can a feasibility study be used to support a lender or investor package?
Yes. The written feasibility report and hard-cost estimate are commonly included in lender due diligence packages and investor presentations because they carry more weight than a broker's pro forma alone.
Does JFD perform feasibility studies outside North Carolina?
Yes, feasibility studies are part of JFD's advisory practice across its six-state footprint of Virginia, Kentucky, Tennessee, South Carolina and Georgia, in addition to North Carolina.
Before you close on the land
Get a builder's cost basis before your earnest money is at risk
A feasibility study during due diligence is the cheapest insurance policy in the entire development process.