Investors Prepare for Future Growth in Inland Empire’s “Ag Preserve”

Senior Marketing Consultants Doug Jorritsma and Winn Galloway (or “Team SB,” as they are affectionately known in the halls of Land Advisors’ Irvine office), are witnessing a rush of investors to the “Ag Preserve” area of the Inland Empire.  The Team has closed four significant land transactions recently within the New Model Colony master plan as investors position themselves for future growth in Inland Empire land values. 

The four deals collectively consist of over 140 acres of unimproved land zoned for residential use. Each of the subject transactions was purchased by private investors from lenders looking to unload distressed assets.  The properties’ buyers plan to hold the land for up to five to seven years, depending on the rate of market recovery.

The South Ontario/New Model Colony is considered to be an “A” location within the Inland Empire. Ideally located near where the Counties of Orange, Riverside and San Bernardino intersect, this submarket offers remarkable accessibility to major Southern California employment centers and new home development potential. 

Doug Jorritsma, an Inland Empire land specialist with Land Advisors since 1999, has extensive experience selling land and residential lots within the Ag Preserve, which includes Ontario, Eastvale, Chino, and Norco.  He has sold over 6,000 lots for consideration in excess of $375 million in this submarket alone.

“As the market recovers, the New Model Colony will see increasing interest from homebuilders,” remarked Jorritsma.  “While homebuilder activity has been nearly nonexistent in the New Model Colony, the area is well positioned to see tremendous growth and future development opportunities.”

Winn Galloway, who is also an expert on land activity in the Ag Preserve and surrounding areas stated: “Land values are holding steady which is currently attractive to investors.  In comparison with 2005 land values, investors are able to purchase residential lots at incredible discounts offering an excellent opportunity for patient money to get big returns.”

In 2010/2011, Jorritsma and Galloway together closed 28 land transactions, which consisted of over 7,000 residential lots throughout the northwest Inland Empire for consideration in excess of $192 million.

New Model Colony Master Plan: The New Model Colony encompasses 8,200 gross acres and will allow for the development of 31,188 residential units on 5,196 acres.  It is bound by Riverside Drive to the north, Milliken Avenue and Hamner Avenue to the east, the Riverside County line and Merrill Avenue to the south, and Euclid Avenue to the west.

Source: Doug Jorritsma, Senior Marketing Consultant (949) 852-8288 ext. 13, and Winn Galloway, Senior Marketing Consultant, (949) 852-8288 ext. 27

D.R. Horton Hears a Who

While many of the public homebuilders are sitting on the land-buying sidelines this quarter, D.R. Horton hears the call to purchase more land!

Land is scarce in the fictional city of “Whoville” so the D.R. Horton team has taken to several cities in the Inland Empire, and recently closed on transactions in both Eastvale and Chino. 

The Eastvale site consisted of 173 entitled lots just west of the I-15 Freeway. 

Following the mantra of the 1954 book with a similar name, “a deal is a deal no matter how small,” D.R. Horton closed on 43 finished lots in the College Park master planned community. 

In addition, in the first quarter of 2011 Land Advisors assisted D.R. Horton in the acquisition of 53 lots adjacent to California State University – San Bernardino.

2011 TEAM “SB” YEAR IN REVIEW: 

Despite a sluggish market, the San Bernardino Team (Doug Jorritsma & Winn Galloway) participated in several transactions totaling more than $84 million in 2011.  The majority (57%) of transactions was conventional sales; REO’s only accounted for approximately 36% of all transactions.  The Team anticipates the number of REO’s to decline moving into 2012, as many troubled assets have already worked their way through the market. 

On the Buyer side, private investors lead the way totaling 36% of all San Bernardino Team transactions in 2011.  Of the last five transactions, four were purchased by private investors looking for unimproved land for long term hold.   

Echoing the sentiments of the mayor of “Whoville,” “We are here” at Land Advisors to help you with your land needs in 2012.  Merry Christmas and a Happy New Year!

Source: Doug Jorritsma, Senior Marketing Consultant, (949) 852-8288 x13 and Winn Galloway, Senior Marketing Consultant, (949) 852-8288 x27

Only 3 Public Homebuilders in Escrow in W. San Bernardino Co.

In the West San Bernardino County sub-market, only three public homebuilders are currently in escrow.  As banks have worked through a majority of their REO inventory, the residential land deal flow has slowed.

Large land plays are making some headway in the Inland Empire, as indicated by the recent sale of Summerwind Ranch for $33.5 million in Calimesa (represented by Land Advisors Organization), which sits on the Riverside/San Bernardino County border. 

However, apartment developers are starting to branch out from the core coastal markets and look for worthwhile deals in the better performing sub-markets of San Bernardino County such as Rancho Cucamonga, Chino, Chino Hills, and Eastvale.

Source: Winn Galloway (949) 852-8288 x27, Marketing Consultant covering the West San Bernardino County sub-market