Source: Tom Reimers, President, (949) 852-8288 x28
As we begin to approach the fall, you can bet the weather will cool down but the apartment market will continue its hot streak. The Los Angeles Infill Team has been paying close attention to apartment rental trends and has seen favorable signs for continued rent growth.
Apartment rental rates in Los Angeles continued on their strong path of growth as seen in year-over-year data in the second quarter 2012. Average rents for all types of rental units increased 5.3%. The biggest surprise may be the average YOY growth seen in both two and three bedroom townhome units. Rents in two bedroom townhome units increased an average of 13.8%, while rents in three bedroom townhome units increased 17.2%. Townhome and three bedroom units have seen a large boost in pricing as many families displaced by foreclosure try to find units large enough to accommodate them. Several buyers, including investors and developers, are paying close attention to these statistics and are pushing to purchase properties with the ability to build and rent townhomes then convert them to condominiums as the for-sale market improves. Average occupancy rates have continued to tick upwards and touched 95.5% in Q2 2012 for metro Los Angeles.
These are strong signs keeping the search for apartment land deals atop the list of many builders and developers. The Los Angeles Infill Team at Land Advisors recently transacted on a rental townhome project and has a handful of other apartment deals under contract. Our team is well versed in the local rental market and eager to discuss available and active apartment projects.
The following news articles highlight the strength of the rental market in Los Angeles and throughout Southern California.
Source: Chris Gomez-Ortigoza, Marketing Consultant
Land Advisors Organization, the Nation’s largest residential land brokerage and advisory firm, has hired Robert S. McFarland, M.I.R.M. as a Marketing Consultant, adding to its unique depth of residential land industry experts.
Mr. McFarland is teaming up with Land Advisors’ Marketing Consultant David Landes, specializing in residential land sales in the San Diego County submarket.
“I am thrilled with the opportunity to join Land Advisors,” commented Mr. McFarland. “The firm is the best in the business, and offers land sellers and land buyers the most thorough market insight and knowledge.”
With over 30 years of experience evaluating real estate development as an appraiser, homebuilder marketing executive, and consultant, Mr. McFarland is an expert real estate development consultant.
Mr. McFarland is a long-time resident of San Diego County and will work out of the firm’s San Diego office. Mr. McFarland can be reached at (760) 207-6871, and at email@example.com.
Land Advisors Organization – California Division is pleased to announce the closing of “Walnut III,” a ±20-acre residential subdivision located at the northeast corner of Cypress and Walnut, in the City of Fontana, County of San Bernardino. YH Walnut, LLC sold the 74 single family lots to D.R. Horton (NYSE: DHI) for an undisclosed amount.
Land Advisors’ San Bernardino Team, which is based out of the firm’s Irvine office, represented the buyer and the seller in the transaction.
Walnut III is located just south of the 210 Freeway, west of Sierra Avenue. The lots are 7,200 minimum square feet, and were sold in fully improved condition with an approved final map.
“The Walnut III lots were the only finished lots available in Fontana,” remarked Land Advisors Senior Marketing Consultant, Winn Galloway. “The purchase will afford D.R. Horton the opportunity to commence vertical construction immediately and add coveted 2012 home deliveries to their business plan.”
For more information about Land Advisors’ San Bernardino Team, contact Doug Jorritsma at (949) 852-8288 ext. 13/ firstname.lastname@example.org, and Winn Galloway (949) 852-8288 ext. email@example.com.
The Land Advisors’ High Desert Team recently closed a multi-million dollar sale on a five-subdivision portfolio in the High Desert. Collectively, the five land assets consist of 364 residential lots in varying stages of development. A private investor (represented by John Reeder of the Mimi Song Company) purchased the portfolio with the intent to hold for the long term. Land Advisors represented the portfolio’s seller (a lender), in the transaction.
The details of the five portfolio assets include:
- “Barcelona Heights II” is located within the City of Hesperia and consists of 91 single family lots with a minimum lot size of 5,801 square feet. The lots were sold in “partially finished” condition with a recorded final tract map.
- “Copper Crest” is located within the City of Hesperia and consists of 71 single family lots with a minimum lot size of 6,000 square feet. The lots were sold in “mostly finished” condition with a recorded final tract map.
- “Autumn Glen IV & V” is located within the City of Victorville and consists of 66 single family lots with a minimum lot size of 7,000 square feet. The lots were sold in “mostly finished” condition with a recorded final tract map.
- “Falcon Point II” is located within the City of Lancaster and consists of 131 single family lots with a minimum lot size of 7,000 square feet. The lots were sold in unimproved condition with an approved tentative tract map.
- “Adelanto-5” is located within the City of Adelanto and consists of 5 single family lots with a minimum lot size of 7,000 square feet. The lots were sold in “mostly finished” condition with a recorded final tract map.
“This was a challenging transaction due to the nature of five different subdivisions (and two counties) involved in the sale,” noted Land Advisors’ Senior Marketing Consultant Randy Coe, who has been selling residential land in the High Desert for about 10 years. “However, this was the largest remaining Bank REO finished lot opportunity in the submarket, and offered a significant value for the buyer of the portfolio,” he said.
In a separate transaction, the High Desert Team also recently led the closing of “Tuscany III” in Victorville. The transaction consisted of 142 unimproved single family lots with an approved tentative tract map. A private investor purchased the subject lots from Mojave & Onyx LLC for, with the intent of holding the project until the housing market returns.
Land Advisors Organization – California Division is pleased to announce the closing of “Lerno Verhagen,” a ±516-acre planned community within the City of El Centro, County of Imperial. The property was sold in its current condition as active farmland, with an approved specific plan for ±1,700 dwelling units.
Land Advisors’ Coachella/Imperial Team, which is based out of the firm’s Palm Desert office, represented the buyer (private investor) and the seller (lender) in the transaction.
With several other sizable Imperial Valley transactions already under its belt, the Coachella/Imperial Team was able to drive value for the seller by leveraging its knowledge of the submarket and access its extensive yet focused network of key industry relationships.
“Given the prime location of this asset, this transaction was a tremendous ‘win/win’ for both buyer and seller,” stated Land Advisors Marketing Consultant, Stone James. “Imperial County is a terrific submarket for farmers and long-term land developers.” He explained how the region is home to significant farming operations as well as several critical governmental organizations such as U.S. Border Patrol, U.S. Immigration and Customs Enforcement (I.C.E.), and the California Department of Corrections.
Land Advisors Organization – California Division is pleased to announce the closing of Village at Broad Street (Parcel II), where Presidio Capital Partners, Inc. with Fuller Apartment Homes, Inc. purchased 28 for-rent apartment units from H&D Maymont, LLC for an undisclosed amount.
The ±1.41-acre Parcel II was the last remaining parcel available for sale within The Village at Broad Street. The project is located in close proximity to downtown San Luis Obispo, east of Emily Street between Roadhouse Avenue and South Street. The Village at Broad Street is a mixed-use development that includes a newly opened Fresh & Easy Neighborhood Market and 42 multi-family affordable apartments. ROEM Corporation developed the affordable living component and finished construction in January 2012.
“The downtown area of San Luis Obispo has always been a very desirable location, and The Village at Broad Street project further enhances the quality and vitality of the area,” stated Land Advisors’ Senior Marketing Consultant Matt Power, who has been tracking residential land activity in the Central Coast region of California for about ten years. “San Luis Obispo is a unique submarket and continues to draw interest from the building community.”
Land Advisors Organization – California Division is pleased to announce the closing of a 21-unit apartment building, where Steve Porretta purchased the Burbank property from Essential Assets, LLC for $4,200,000.
Land Advisors’ Urban Infill Team, which is based out of the firm’s Pasadena office, facilitated the multi-family property sale by assisting Mr. Porretta with a 1031 Exchange.
In 2011, the Team assisted Mr. Porretta with the sale of his Silver Lake property, “Waverly Terrace Townhomes,” which included 63 unimproved townhome lots with a recorded final map.
Mr. Porretta then needed to find a reinvestment opportunity and looked to Land Advisors’ market knowledge and extensive network of industry contacts for purchase options. Through its list of industry relationships, the Urban Infill Team was able to source the off-market 21-unit apartment building, and represented Mr. Porretta and Essential Assets, LLC in the transaction.
“Mr. Porretta needed something very specific,” noted Land Advisors’ Senior Marketing Consultant Richard Byrd. “By calling on our industry contacts we were able to provide several opportunities for Mr. Porretta to choose from.”
Land Advisors Organization is very proud to announce the hiring of legendary real estate veteran Mackey (“Mac”) O’Donnell. Mr. O’Donnell brings to Land Advisors his extensive development industry experience throughout the private and public sectors, in addition to his remarkable residential land transaction resume.
In his new role as Senior Marketing Consultant at the California Division of Land Advisors, Mr. O’Donnell joins the Riverside County Team, working in partnership with R. Jeffrey Spindler and F. Brian Carricaburu, both of whom also have extensive experience selling residential land throughout the State of California.
“We are absolutely thrilled to have Mac on board at Land Advisors,” commented Mr. Spindler. “He brings to our firm superior insight, integrity and deal experience. With the addition of Mac to our group of talented advisors, the California Division of Land Advisors is poised to offer our clients the very highest level of expertise and knowledge in the industry.”
Known by most in the land development/homebuilding arena for his role as co-founder and president of land brokerage firm O’Donnell/Atkins, Mr. O’Donnell has a lengthy resume that proves his remarkable leadership and innovative ability to find the most valuable land opportunities. At the firm’s peak in 2005, O’Donnell/Atkins had grown to six offices and forty brokers statewide, with $1.6 billion in annual land transactions.
“It’s great to be back in the game,” remarked an enthusiastic Mr. O’Donnell. “Land brokerage is a passion for me, and Land Advisors is a dynamic group of professionals that offers exceptional quality service to its clients all over the U.S. I am excited to join the team, and I’m confident that Land Advisors Organization provides the best platform in the industry to assist clients in making complex land decisions.”