Considerations for Waterfront Property Investment

Multicultural real estate developer Marius Fortelni entered the construction sector by launching a cement business based in Nigeria. He went on to manage multiple construction projects in Saudi Arabia before purchasing luxury real estate in the Hamptons and venturing into the New York property market. Today, Marius Fortelni serves as president and founder of Forte Properties, a real estate investment firm specializing in luxury and waterfront properties. 

Waterfront properties come with extra considerations due to distinct environmental factors and complex building regulations. Before investing in a waterfront property, buyers should examine the following:

Insurance Requirements: Waterfront properties may trigger requirements for more comprehensive flooding and homeowners insurance. These properties are also more susceptible to erosion and damage from strong winds. Owners should consider all of these environmental threats to assess insurance costs. 

Water Restrictions: Buyers may want waterfront properties to engage in activities such as sailing. However, many communities have restrictions on shoreline use and the types of watercraft allowed to dock. Buyers should have a strong understanding of local regulations.

Future Construction: Waterfront properties can be directly impacted by new developments thousands of miles away, as debris that flows downstream can impact the property’s value. Buyers should work with a professional to understand land-use laws and if there are any planned developments that may impact the body of water.

Before Groundbreaking - Early Stages of Real Estate Development

As president of Forte Properties in Manhattan, Marius Fortelni connects buyers and sellers of luxury homes, particularly waterfront properties. Marius Fortelni’s professional interests include the preliminary stages of the real estate development process. 

The large investments and long timespans of development projects demands careful attention to the events prior to construction. 

To reduce the unknown factors in development, extensive research must be performed, including market analysis, purchase rights, environmental factors, and surveys. Developers are also responsible for upgrading infrastructure. Securing a construction loan tells potential investors that developers have a good plan in place. Parties buying in at this early stage enjoy higher potential returns than those who invest later.

Essential to pre-building is proper land-use permitting. Permits cover the intended purposes of the property (commercial or residential) and actual building characteristics (density and height). Often the most significant barrier to timely development, land-use issues can include rezoning, disputes and appeals, and complicated, multi-step design plans. 

By contrast, obtaining building permits is relatively straightforward. If the project is compliant with safety regulations and building codes, a permit application is usually the last major step in preparation for construction.