Source: Tom Reimers, President, (949) 852-8288 x28
According to Fresno real estate blogger, BoNhai Lee, the City of Fresno says ±16,000 acres of land remain for housing development. With that being said, Fresno is in need of land developers to entitle and process new tentative tract maps.
Land Advisors Organization’s Fresno office is happy to announce the San Joaquin Valley is (finally!) coming alive in “A” locations. Builders are complaining there are not enough improved lots to choose from in Clovis and northeast Fresno.
RECENT CLOSINGS (September 2012):
- An investor purchased 36 finished lots in Madera (brokered by LAO)
- A farmer purchased ±37 unimproved acres in Clovis (brokered by LAO)
- NOW OPEN – Vantage at Harlan Ranch (Clovis, CA) by Benchmark Communities
- GRAND OPENING – Tuesday, October 16, 2012 @ 10am – Bungalow Court (Fresno, CA) by GV Urban, a division of Granville Homes
HOME SALES: According BoNhia Lee (@bonhialee), new home sales accounted for 5% of the Central Valley residential transactions this year compared to 26% in 2006.
Source: Mark Utman, Marketing Consultant, (559) 549-6326
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.