Site Selection and Due Diligence: Laying the Foundation for a Successful Project

At Compass Development, we often say that success starts long before the first shovel hits the ground. Site selection and due diligence are the bedrock of any real estate development project, and as an Owner’s Representative, we play a critical role in guiding our clients through this foundational phase.

Our Role: The Right Site, The Right Start

Finding the right site is about more than location - it’s about risk management, entitlement feasibility, utility access, and financial viability. Compass leads and coordinates the entire due diligence process on behalf of our clients. We bring together a team of specialized consultants - civil engineers, environmental consultants, surveyors, attorneys, architects - and ensure every critical box is checked before a deal moves forward.

Here’s what we typically manage during this phase:

• Title review coordination with legal counsel to identify encumbrances or restrictions

• ALTA survey procurement to confirm boundaries, easements, and improvements

• Environmental due diligence (Phase I, and Phase II if needed)

• Utility infrastructure assessment for both wet and dry utilities

• Topography, grading, and drainage reviews to uncover costly sitework challenges

• Zoning and entitlement analysis to evaluate what’s permitted - and what’s not

• Conceptual density studies and feasibility inputs for early pro forma development

• Access, offsite improvements, and civil constraints evaluation

• A pre-application meeting with the authority having jurisdiction (AHJ) to ensure compliance and understanding of requirements from planning, building, fire and public works departments. 

Delivering a Clear Roadmap: Project Plan & Budget

One of the most critical deliverables we produce during this phase is a comprehensive project plan, including a development milestone schedule and a preliminary overall project budget. This plan becomes the roadmap for the entire development. It sets clear expectations around timing, major decision points, and financial commitment—giving our clients clarity from day one.

We tailor each plan to the project’s complexity and intended outcome, aligning stakeholders early and helping our clients make fully informed investment decisions.

How We Add Value: Preventing Costly Mistakes and Enhancing Returns

When done right, this phase can protect our clients from making multimillion-dollar mistakes. Our technical oversight, project experience, and market understanding enable us to:

1. Identify Hidden Risks Early We’ve seen clients fall in love with a site—only to uncover issues that make development cost-prohibitive. Our process surfaces those red flags up front, before significant capital is deployed.

2. Build a Smarter Pro Forma We help our clients refine their financial models with real-world data—from utility tap fees to sitework premiums to entitlement timelines. That makes for more accurate budgeting and deal underwriting.

3. Create Leverage in Land Negotiations Well-executed due diligence gives our clients negotiating power with sellers. If we uncover significant issues, we can often re-trade or walk away with confidence.

4. Set the Stage for a Smoother Entitlement Process We don’t just identify what zoning allows—we look ahead to what it takes to get the project approved. That early insight helps prevent entitlement delays down the road.

The Bottom Line

Site selection is not just about picking a parcel—it’s about making an informed decision that sets your project up for long-term success. As your Owner’s Rep, Compass brings process, discipline, and technical expertise to the due diligence phase so you can move forward with confidence.

Because when the foundation is solid, everything else is easier.

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We are excited to create real estate development solutions that become a part of a community. If you would like to explore a commercial real estate or multifamily development project or joint venture, contact Michael Shohet at mshohet@compassdevco.com.