California’s Central Coast is seeing an uptick in investment and development activity as developers and builders find pockets of opportunity with residential land projects emerging from distressed situations. Notorious for its high barriers to entry, the Central Coast sub-markets in Santa Barbara, San Luis Obispo and Monterey Counties remain supply-constrained.
Several newly acquired land projects have either broken or are breaking ground in the coastal towns of Carpinteria and Santa Barbara, while a robust student-housing and rental market keeps San Luis Obispo (SLO) at the top of land wish lists. These projects will bring the first new home product to this sub-market in several years.
Other markets from Paso Robles to Salinas continue to attract investment attention as well.
Source: Matt Power, Senior Marketing Consultant for California’s Central Coast sub-market. For more information on land activity in this area, you can reach Matt at Land Advisors’ Santa Barbara Office at (805) 845-2660.
San Diego Marketing Consultant, David Landes, (858) 568-7428 had this to report on the San Diego County land sub-market today:
Improved lots are still in strong demand.
Carlsbad continues to supply most of the new product with projects in the master plans of The Foothills, La Costa Oaks, La Costa Greens and La Costa Ridge. DR Horton, KHovnanian, Standard Pacific, Pulte, Davidson, Taylor Morrison, William Lyon, Colrich and Cornerstone are all active in this market.
New projects in San Elijo Hills are also cropping up. Lennar is under construction on a new attached project and another large, public builder is currently under contract on some of the remaining lots at the top of the hill.
The apartment groups continue to be aggressive. Several projects are under contract along the 78 Corridor from Vista through San Marcos.
Several improved lot offerings are in the works along the 56 Corridor up through Del Sur and Rancho Santa Fe. Look for transactions by year end.
Standing out as an anomaly among most other California residential land sub-markets, Orange County apartment and single family building activity appears to be cruising along through the global economic waves. According to MarketPointe, new home sales volume increased 17% in OC in the 2nd quarter of this year.
Multi-family Market: Dirt entitled for apartment use is currently trading above $2 million/acre throughout the County. “Hot” areas seeing the most activity and highest value include Huntington Beach, Irvine Business Complex (IBC), and Anaheim’s Platinum Triangle.
The Irvine Company (TIC) is proceeding with the construction of three new apartment projects around the I-405/I-5 interchange area (also known as the Spectrum). This is as the Company is completing its 1,500-unit “Park” community where occupancy rates are averaging 97% and rents are averaging $2.09/sq. ft., according to RealFacts.com. The three new TIC apartment communities will bring another 4,800 units online by 2013. The 1,677-unit Cypress Village apartment rentals are to begin early in 2012, with construction concluding by the end of next year.
Master Plan Activity: Two master planned communities in OC — Tustin Legacy and Rancho Mission Viejo — are moving along, and are both currently interviewing homebuilders and developers for the next phases in their development processes.