We received an inquiry from a homeowner in Esbjerg who wanted to sell their property. They had an idea that a store could be established on their land since their neighbor was SuperBrugsen.
We inspected their property and assessed that an apartment project would be preferable. However, it was not financially viable because the plot was too small. Therefore, we approached two additional neighboring homeowners and asked if they would be willing to sell their properties at a good price. They agreed, and with three combined plots, an apartment building project became feasible.
Through a customer analysis, we identified the requirements and expectations of potential apartment buyers and assessed the location. Based on this, we developed a project description.
The three plots were transferred into a company.
The company had three owners:
We assessed and advised that the property should be designed for local couples aged 50-70, well-educated, and financially stable. At the time, there were no real apartment projects in Esbjerg catering to this demographic.
The critical factor—or the “dark horse”—was whether this target group would be willing to live near the industrial harbor, which was the closest neighbor to the west.
The municipal planning department acted as a sparring partner throughout the development process. In order for the project to comply with legal requirements, a specific local development plan had to be implemented, with an estimated processing time of approximately eight months.
There was, however, significant local protest from residents of a nearby apartment building, as their sea view would—though only minimally—be obstructed. However, a view is only borrowed, not owned, and therefore, this was not a valid objection.
A few local contractors were invited to submit bids. The project was tendered with a high degree of method flexibility for the contractor. The cheapest bid was not chosen; instead, we selected the contractor we believed could complete the project smoothly—without conflicts, unexpected additional costs, and within the agreed timeline.
A key criterion was that the contractor had their own in-house technical design department. This ensured that they would construct what they themselves had designed. During the design phase, our role was solely to ensure that the architectural integrity remained intact.
During the local planning approval process, the condominiums were put up for sale through a well-established local real estate agent. Sales contracts were conditional on the approval of the local plan by the municipal council.
The real estate agent was selected based on their knowledge of the target buyer group. Our underlying strategy was that, in addition to receiving a commission for selling the apartments, the agent would also have the opportunity to sell the buyers’ existing villas—a far more lucrative transaction. This approach ensured that the real estate agent was highly motivated to secure sales.
From a financial feasibility standpoint, luxury apartments were the most profitable. However, smaller units—and thereby a higher number of apartments—also made economic sense. While these would be sold at a slightly lower price per square meter, their construction costs would be proportionally lower as well.
At the time, Esbjerg already had a number of apartment projects in this segment. Selling smaller, more budget-friendly apartments would likely have taken longer.
If the investor had preferred to retain the property for rental purposes, a project with smaller apartments would have been more suitable. However, the preference was to sell the units.
The building was designed by an architect specifically for this purpose, and a scale model of the house was built. This helped present the project attractively to the target audience and, indirectly, to local politicians who needed to approve the local zoning plan.
We assessed and advised that the property should target local couples aged 50-70, well-educated, and financially stable. At that time, there were few apartment projects in Esbjerg catering to this demographic. The critical question—or “dark horse”—was whether this group would be willing to live near the industrial harbor, which was the closest western neighbor.
The investor required proof of sufficient market demand before construction commenced. A minimum of 50% of the apartments needed to be sold before breaking ground.
When the local plan was approved, the sales target was nearly reached, and construction was initiated.
The contractor executed the construction process smoothly. During the building phase, we supervised the architecture, schedule, progress reports, and contract terms. Our role was to oversee the project on a high level.
All our construction projects are developed in collaboration between the contractors, our team, and the developer. The process is solution-oriented and based on mutual respect. For instance, we do not insist on minor architectural details that might be insignificant in the grand scheme but could result in substantial unforeseen costs for the contractor.
This particular project had a complex foundation and basement due to groundwater pressure and storm surge protection requirements.
After approximately ten months of construction, the building was completed, and the final inspection was conducted. The project was delivered on budget and within the expected timeframe.
The project was completed on budget and within the expected timeline.
The final apartment was sold shortly before the building’s completion.
The property underwent both its 1-year and 5-year post-completion inspections without any major issues—only minor cosmetic defects, which the contractor resolved.
Resale prices for the apartments have significantly exceeded their initial purchase prices.
In all our project development work, the overall process remains similar, even though the output varies significantly across different sectors—commercial, retail, residential, industrial, leisure, hotels, and more. However, we also advise, when necessary, that a given project has no viable development potential.
Ladegaard Architecture
Part of Ladegaard Group ApS