Powered land flip
$150-250K/MWAssign the contract before closing to a developer, who closes on the land. The option fee credits against the price.
- Called
- $100K
- Distributable
- $1.65M
- LP result
- $90K → $964K
Texas powered land · one LLC per site
Own the value that builds before the first meter is set.
A developer puts little money into a site before the utility confirms power. Most of the value shows up during that wait. Pick a site and commit to it. $100K is due at closing and the rest is called for that site only as it clears its gates. At the close gate, sell the powered land, sell a designed shell, or buy the site yourself at a price set up front.
The value gap, one site
Your position, net of debtCapital called
Due at closing$100K
Flip, distributable$1.65M
Shell, distributable$5.73M
LP multiple, flip10.7x
Illustrative model, not a forecast. One site with a $500K commitment and $100K due at closing. Land under contract at about $250K plus $10K per MW. The flip assigns the contract before closing at month 8, with the option fee credited; the shell exit closes with 70% debt, calls the rest, and sells at month 12 after about $200K of engineering and design. Distributable figures are after the land price, debt, the development fee ($5K per MW), the management fee ($1,000 a month) and formation costs, and before sale costs and taxes.
The market
Everyone wants ready-to-energize sites, so everyone pays full price for them
Capital lines up for the finished product. The discount sits upstream, in sites that are controlled but not yet confirmed.
ERCOT large-load queue233 GW
Requested by late 2025, nearly four times the year before. Over 70% of it is data centers. Utility Dive
Buy 10 MW of powered land$2.0M
At $150K to $250K per MW for land with confirmed power. Illustrative midpoint.
Develop it with us$100K
Due at closing on a $500K site commitment. Covers the flip path; no land equity. Illustrative.
The offer
Partner with us and you become the developer
We bring the sites
A backlog of Texas powered-land sites, sourced and screened by a development team that has built seven Texas sites since 2021.
You fund the cheap part
Earnest money, utility studies, survey and title. $100K at closing; the rest is called for that site only, one gate at a time.
We invest alongside you
The GP puts 10% into every site and runs it through the process.
You vote on the exit
Sell the powered land, add design work and sell a powered shell, or buy the site yourself at a price set up front.
The process
How a site comes to market: eleven steps in five phases
Written from closed Texas deals. Power gates everything: no contract without a capacity screen and no closing without written capacity from the utility.
Phase 1
Control
Months 0 to 2- 01Sourcing
- 02Capacity screen
- 03Contract with a long close
Gate: 5 MW+ available, meter inside about 6 months
Phase 2
Confirm
Months 2 to 5- 04Utility confirms capacity
- 05Survey, title, zoning
- 06Utility design and route
Gate: capacity confirmed in writing
Phase 3
Close
Months 5 to 8- 07Debt financing
- 08Closing
- 09Exit election
Gate: loan funded; LPs pick the exit
Phase 4
Design
Months 8 to 12- 10Engineering, design, permits and utility agreements
Shell path only. Gate: design package complete
Phase 5
Energize
Month 12 on- 11Build-out and energization
Done by the buyer, or by you as the developer
On our team's closed deals: terms to executed contract in as little as 6 days; closing to energization in 4 to 9 months.
Three exits
Flip the contract, build it yourself, or sell a designed shell
The GP recommends an exit at the close gate and the LPs can switch it by majority vote. Figures are for a 10 MW site under contract at $350K with a $500K commitment, at the midpoint of each range, after the land price, debt, the development fee and the management fee, before sale costs and taxes.
Develop yourselves
Pre-set $/MWAny LP can take over the contract at the powered-land price set in the site notice, then close and build.
- Price
- $2.0M
- Price set
- In the site notice
- Buyer’s own share
- Credited
Powered shell exit
$500-700K/MWClose on the land with about 70% debt, add about $200K of engineering and design, then sell a designed, permitted site.
- Called
- $422K
- Distributable
- $5.73M
- LP result
- $380K → $3.40M
Capital by gate
Small checks early. Each gate releases the next one.
Each site has its own commitment, $500K standard. The $100K due at closing covers the flip path on a 10 MW site with about $37K to spare. The rest is called for that site only. Sites with buildings can need a larger option payment.
| Tranche | What it buys | 10 MW | Gate to release the next | If the gate fails |
|---|---|---|---|---|
| 1 Control | Option or earnest money, capacity screen | $15K | 5 MW+ available, meter inside about 6 months | Walk. Loss capped near $15K |
| 2 Confirm | Utility studies, survey, title, legal | $30K | Capacity confirmed in writing | Walk. Unused capital returned |
| Fees | Formation and management fee to month 8 | $18K | None | Paid from the $100K |
| 3 Flip | Assign the contract before closing | $0 | Buyer or LP signs at the pre-set price | Close if needed (about 70% debt) |
| 4 Shell | Closing ($125K), design and permits ($205K), half the development fee ($25K), fees | $359K | Design package complete | Shell exit only, sale at month ~12 |
| Due at closing | $500K commitment; GP 10%, LPs 90% | $100K | Covers the flip or develop exit | $422K called for the shell |
Incubator projects
Two Texas sites, each offered on its own
Location, owner and parcel are shared under NDA. Outcomes are illustrative until each capacity screen returns.
Project A
10 MWStep 1 of 11: capacity screen next
- Location
- Greater Houston, CenterPoint
- Land contract
- $350K
- Commitment
- $500K; $100K at closing
- Called, flip / shell
- $100K / $422K
- Flip at $2.0M, LP
- $90K → $964K
- Develop yourselves
- Take over at $2.0M
- Shell at $6.0M, LP
- $380K → $3.40M
Project B: powered building
14 MWStep 1 of 11: capacity screen next
- Location
- Greater Houston, CenterPoint
- Purchase price
- $2.5M with building
- Commitment
- $500K; $100K at closing
- Option, 6 months
- $275K, called after closing
- Called, flip
- $327K
- Flip at $4.2M, LP
- $294K → $1.26M
- Develop yourselves
- Take over at $4.2M
- Flip range $3.5M to $5.0M
- LP 3.0x to 5.8x
Option fees credit against the purchase price. After the land price, debt, the development fee ($5K per MW) and the management fee; before sale costs and taxes. Project A flips at $200K per MW (LP 7.7x to 13.7x across $1.5M to $2.5M) and sells as a shell at $600K per MW; Project B flips at $300K per MW.
How we work
One LLC per site. You pick the site.
Investors (LPs)90% of each site
First Meter Partners GPManager, 10% of each site
Development companySources and develops each site; $5K per MW, half at closing or assignment, half at sale
$500K commitment, $100K at closing
10%, manages for 2% or $1,000/mo
development agreement
Site LLCOne per site. Holds the contract, the land and the utility capacity.
secured note
owns
sale at exit
LenderAbout 70% of land cost, only if the site LLC closes
Powered siteLand, capacity, design package
Exit buyerA developer, a shell buyer, or an LP
Site terms
- Vehicle
- One Texas LLC per site; each site is its own offering
- Commitment
- Set per site, $500K standard; LPs 90%, GP 10%
- Due at closing
- $100K; the rest called for that site only
- Management fee
- Greater of 2% a year and $1,000 a month, until the site sells
- Development fee
- $5K per MW; half at land closing or assignment, half at sale
- Preferred return
- 8% per year, compounded, on called capital
- Promote
- 20% to a 2.0x LP multiple, 30% to 3.0x, 40% above
- Exit election
- GP recommends at the close gate; an LP majority can switch it
- Develop-yourselves price
- Powered-land $/MW, set in each site notice
- Term
- Until the site sells; 3-year target, plus extensions
Distribution waterfall
- 1Return of capital
To each LP until its contributions are returned.
- 2Preferred return
8% per year, compounded.
- 380 / 20
Until the LP has received 2.0x its capital.
- 470 / 30
Until the LP has received 3.0x.
- 560 / 40
Everything above 3.0x.
10 MW, $500K commitment, midpoint, after all feesFlip LP $90K → $964K · GP $10K → $688KShell exit LP $380K → $3.40M · GP $42K → $2.33M
GP figures include its 10% capital. The promote is calculated for each site on its own. The summary of terms and the site documents are under Docs. Not an offer to sell securities; each site is offered separately, only to verified accredited investors, through its own definitive documents.
Risk
What can go wrong, and how each risk is handled
The utility cannot deliver
Screen before contract, written capacity before any flip or closing, and walk with the loss capped at the option and studies already spent.
No exit buyer
Three exits, including taking the site yourself at the pre-set price, or holding through energization.
Energization slips
The land and shell exits sell before energization, so the buyer carries the build schedule.
A crowded substation
Check the ERCOT queue around each station before spending on the site.
One site per investment
Each LLC holds one site, so there is no diversification inside it. Take more than one site to spread risk. Shell work is a fixed-scope package, called only after that exit is elected.
Closing and debt
Most sites flip before closing. When a site LLC does close, real-estate notes at about 70% of land from a relationship bank.
Decide
Pick a site. Each one is its own offering.
Project A
10 MW$500K commitment. The $100K due at closing covers the flip path.
Project B
14 MW$500K commitment. $100K at closing, then a call for the $275K option on a powered building.
1NDA
2Site notice and data room
3Subscription and accreditation
4$100K at closing