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Research · Field Notes

How Districts
Create Value

Value is made by assembling and master-planning the whole, not by buying finished buildings.

Seven comparable districts · The value-creation mechanism · What it means for Edgewater
The Thesis

The value is in the assembly

A single building is bought at retail. A district is created. Across the most-cited mixed-use and innovation districts of the last two decades, the largest, earliest gains came not from vertical construction but from controlling underused land, assembling it, securing entitlements, and master-planning a coherent whole. That work converts a set of ordinary parcels into an entitled platform worth far more than its raw basis, and opens a buildout opportunity many times larger again. The capital that funds the assembly captures the steepest part of the value curve. At Edgewater, Now City plays that role as master developer: assembling and entitling the district, then developing and holding the phases as a long-term owner-operator, with the option to bring in best-in-class specialist builders on individual parcels.

Low-basis land

Nearly every comparable district started on underused land at a modest basis: a highway corridor, a brownfield, federal or port land, an aging harbor, a ballpark parking lot. The entry point is the opportunity.

A modest unlock

The platform-creation capital is small next to the value it releases, and its largest line, infrastructure, is mostly funded by public and project sources. The developer equity at risk is the highest-leverage capital in the project, and the hardest to access later.

A platform, then a buildout

Once assembled and entitled, the platform is worth a multiple of its basis, and it carries a full-buildout opportunity an order of magnitude larger, delivered in phases over a decade.

The Mechanism

Five moves that make the value

The pattern is consistent enough to read as a sequence. The value compounds at each step, and the return on capital is highest at the front, where the assembly and entitlement happen.

01
Control the land

Take low-basis, underused parcels under control through purchase, option, lease-to-own, or contribution.

02
Assemble

Stitch separate sites into one contiguous, developable district, the step a single owner cannot do alone.

03
Entitle & plan

Win the zoning and master plan, and stage the early infrastructure that makes the whole buildable.

04
Platform value

The entitled, master-planned district now trades at a large step-up over its raw-land basis.

05
Phased buildout

Deliver vertical product in phases, with recurring liquidity windows, against the unlocked opportunity.

The earliest equity, funding control, assembly, and entitlement, is the largest source of value creation, while the heaviest cash line, infrastructure, is mostly carried by public and project sources. It is also a position rarely open to outside capital, because it is taken before the district visibly exists.
The Comps

Seven districts, one curve

Comparable mixed-use and innovation districts, ordered by acreage. Read across a row to see the land basis, planning and entitlement spend, and infrastructure investment add up to the total platform-creation capital, which a district then converts into a large platform value and, over a decade, a multibillion-dollar buildout. Every figure in the final column is total development investment, what it costs to build the district out, on a consistent basis: across these precedents, the completed market value is rarely disclosed publicly, so we do not imply one. Infrastructure is broken out because it is the largest line, and, as the next section shows, the one most often carried by public and project sources rather than developer equity. Figures are illustrative, drawn from public reporting for the comparables and from Now City planning estimates for Edgewater.

District Acres Initial land basis Planning & entitlements Infrastructure investment Total platform-creation capital Platform value after entitlement & infrastructure Full buildout investment
Edgewater West Salem, OR 22 $30M ~$20M public / project ~$50M at buildout ~$650M
Mission Rock San Francisco, CA 28 ~$100M to 200M ~$50M to 100M ~$300M to 400M ~$450M to 700M ~$750M to 1.2B ~$2.5B
The Yards Washington, DC 48 ~$50M to 100M ~$30M to 60M ~$100M to 200M ~$180M to 360M ~$400M to 700M ~$2.0B
Harborplace Baltimore, MD 20 ~$50M to 100M ~$25M to 50M ~$50M to 100M ~$125M to 250M ~$250M to 500M ~$900M to 1.0B
195 District Providence, RI 26 ~$20M to 50M ~$20M to 40M ~$50M to 100M ~$90M to 190M ~$150M to 300M $800M+
Port Eastside East Hartford, CT 30+ ~$30M to 60M ~$20M to 40M ~$75M to 125M ~$125M to 225M ~$200M to 400M ~$850M
Cortex St. Louis, MO 200 <$100M ~$50M to 100M ~$100M to 250M ~$200M to 450M ~$500M+ ~$2.3B to 2.5B
Edgewater enters at the smallest land basis and the smallest GP platform-creation capital in the set, and its infrastructure is largely carried by public and project sources rather than developer equity, which is the point: the value-creation work is still ahead, and the position is still open. Edgewater's value is projected at buildout rather than as a separate platform value. Buildout-investment figures reflect full-buildout totals where published (Mission Rock ~$2.5B; The Yards ~$2.0B private; Cortex a $2.3B to 2.5B master-plan target against $1.33B invested to date); the Providence, Baltimore, and East Hartford figures are private development capital announced or attracted. Comparable figures are approximate and reflect different eras, geographies, and accounting; they are directional, not like-for-like. Edgewater's estimated value at buildout is shown separately below as a Now City projection, not a comparable figure.
Infrastructure

The largest line, and who funds it

Infrastructure, roads, utilities, grading, and the public realm, is usually the biggest component of platform-creation capital. Across these districts it is rarely carried by developer equity alone. It is funded through a public-private stack: public participation, urban renewal and tax-increment financing, state grants, infrastructure debt, and contributions from the vertical projects the infrastructure makes possible. The developer and GP equity share is a minority of the total, which is what keeps the equity at risk small relative to the value created.

Typical infrastructure funding mix

Public participation25% to 50%
Urban renewal / TIF20% to 40%
Developer equity10% to 25%
Infrastructure debt10% to 25%

Illustrative Edgewater program (~$50M)

Urban renewal / TIF$17M
Public grants / state programs$5M
Infrastructure debt$10M
Vertical project contributions$10M
Developer / GP equity$8M
Total$50M
In the illustrative ~$50M Edgewater program, developer and GP equity carries roughly $8M, under a fifth, with public sources (TIF plus grants) at about $22M, infrastructure debt at $10M, and contributions from the vertical projects at $10M. Edgewater sits within the Riverfront-Downtown Urban Renewal Area, which supports the tax-increment component. Illustrative planning-level estimates for discussion, subject to public approvals and final structuring.
The Cases

Underused land, made into a district

Each of the comparables began the same way Edgewater begins: a champion took underused land under control, assembled and entitled it, and master-planned a district that was worth far more than the parts.

Mission Rock

Twenty-eight acres of Port of San Francisco land beside Oracle Park, long used as a ballpark parking lot, master-developed by Tishman Speyer with the San Francisco Giants. Entitlement turned it into a roughly 3.6 million SF waterfront district planned for about 1,200 homes at a 40% affordable target, with office and lab space and eight acres of parks. A first phase of four buildings and China Basin Park opened in 2023 to 2024.

28 acres · ~1,200 homes · ~$2.5B invested at buildout
Source: ULI ↗

The Yards

Forty-eight acres of former Washington Navy Yard land on the Anacostia River, master-developed by Forest City and now Brookfield with the support of a $90M city PILOT. Federal land became a mixed-use riverfront neighborhood planned for up to 3,400 homes, more than two million SF of office, 400,000 SF of retail, and 7.5 acres of park, anchoring the fastest-growing neighborhood in the DC region.

48 acres · up to 3,400 homes · ~$2.0B private investment
Source: The Yards ↗

Cortex Innovation Community

Two hundred acres of formerly blighted industrial land in St. Louis, master-developed by a nonprofit backed by five anchor institutions, on a master-plan target of $2.3B to 2.5B. The $1.33B invested to date has drawn 400-plus companies and 5,400 jobs, generated $2.1B in annual regional output, and lifted property values in its ZIP code faster than anywhere else in the region.

200 acres · 400+ companies · $1.33B invested to date
Source: Cortex ↗

195 District

Twenty-six acres freed when Interstate 195 was relocated through Providence, master-planned by a state redevelopment commission. The reclaimed highway land has drawn more than $800M of private investment, the Wexford Innovation Center now home to 260-plus companies, Brown University, and 1,100-plus homes built or in development, with more in the pipeline.

26 acres · 260+ companies · $800M+ invested
Source: 195 District ↗

Port Eastside

A roughly thirty-acre Connecticut River frontage in East Hartford, assembled for an approximately $850M mixed-use redevelopment: about 1,100 homes, retail and entertainment, a riverfront greenway, and a pedestrian bridge to Hartford, supported by around $100M of public funding.

30+ acres · ~1,100 homes · ~$850M development
Source: Port Eastside ↗

Harborplace

Twenty acres at Baltimore's Inner Harbor, master-planned by MCB Real Estate, a $900M to $1B rebuild of the iconic 1980s waterfront into four towers with about 900 homes and more than 200,000 SF of commercial space, with roughly $400M for the public realm, approved by city voters in 2024.

20 acres · ~900 homes · ~$900M to 1.0B
Source: Our Harborplace ↗
Community Value

Value that lands in the community

The same assembly that creates platform value also creates jobs, tax base, housing, and talent retention that compound for the city around it. A district is one of the few real-estate moves whose payoff is shared by its neighbors. The figures below come from each district's own impact reporting; methods, vintages, and scopes differ, so read them as directional evidence of magnitude rather than like-for-like.

$50M
Platform Capital
$30M
Land basis
● incl. $5M Sponsor contribution
$20M
Working capital
Assembly & Value Creation
Control, entitle, and activate the full 22-acre district
~$650M
Development pipeline unlocked across four phases
~$1.0B
Stabilized asset value at completion
Multiple Exits
Rolling recapitalizations and phase-level dispositions, Y4 / Y6 / Y8, with optional Year 10+ Opportunity Zone hold

Illustrative district-scale figures, company underwriting (June 2026). Infrastructure is largely carried by public and project sources, so the GP capital at risk is the catalytic slice shown above. Build-out is targeted complete across all four phases in Year 8, with the final phase stabilizing ahead of Year 10.

Illustrative, planning-level estimates for discussion, not a forecast or an offer. The infrastructure share of platform-creation capital is largely carried by public and project sources, so developer and GP equity at risk is a minority of the total (see Infrastructure). Comparable figures are drawn from public reporting and vary in era and method. See District Capitalization for the capital structure and the Innovation District for the vision.
The Takeaway

Value is created in
the assembly.

The districts that compounded value did the unglamorous early work first. Edgewater is at that moment now. See District Capitalization, or learn more at nowcity.co.