Tag Archives: Land

Closed Land Transaction – 82 Lots within the Alberhill Ranch Master Planned Community in Lake Elsinore

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IRVINE, CA, SEPTEMBER 1, 2016 — The Irvine office of Land Advisors Organization, a premier nationwide land brokerage firm, announced today the successful closing of Alberhill Ranch 82 Lots within the Alberhill Ranch Master Planned Community. Alberhill Ranch 82 Lots is located west of Interstate 15 at the southeast corner of Lake Street and Alberhill Ranch Road in the City of Lake Elsinore, Riverside County, California.

Land Advisors Organization brokers R. Jeffrey Spindler, F. Brian Carricaburu, Ian T. Sinderhoff, and Andrew Sinderhoff negotiated the transaction, representing the buyer and seller.

The lots were sold by Castle and Cooke Alberhill Home Building, Inc. and was purchased by KB Home. KB Home is looking to continue the success of its two previous projects within the Alberhill Ranch Community, Terraces I and Terraces II. Alberhill Ranch is a 1,853-acre development with approximately 3,705 residential units and over 600 acres dedicated to open space with walking trails, parks, and schools.

“Affordability has been a primary concern for the public homebuilders in the Inland Empire over the last couple of years. KB Home has been very successful in Lake Elsinore with their Terraces community in Alberhill Ranch. These home sites with excellent views of the lake and surrounding hillsides and generous 6,000 square foot pads will allow them to continue that success. Alberhill Ranch is a premier master-planned community sitting atop the hills north of the lake with an existing pool and recreation center, proposed commercial, and planned elementary school,” said Brian Carricaburu, Founding Principal at Land Advisors Organization.

For additional information regarding this transaction and land trends occurring in the Riverside County area, contact F. Brian Carricaburu: bcarricaburu@landadvisors.com / (949) 656-8002

A Premier In-Fill Development Opportunity Featuring 167 Acres in Oakland Trades Hands in a Red-Hot Bay Area Land Market

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May 9, 2014 (Irvine, California) – The California Division of the Land Advisors Organization is pleased to announce the closing of Oak Knoll, a premier hillside development opportunity featuring 167 acres in Oakland, California. The asset sale was brokered on behalf of LV Oak Knoll LLC, the Seller, by Terry Ruckle and Steve Reilly of the Land Advisors Organization.

Land Advisors generated 20 offers for the property, evidence of intense competition for Bay Area residential development projects.

The Oak Knoll property is unique in the market due to its ability to provide desperately-needed new single-family homes, significant natural open space, trails and parks, and direct access to Interstate 580 at Mountain Boulevard.  With its in-fill location, the Oak Knoll property is well-positioned to provide a wide range of housing options to the East Bay Area.  Oak Knoll offers one of the rarest residential development opportunities remaining in the Western United States.

For more information about Oak Knoll, please contact Terry Ruckle, Co-Founding Principal and Oak Knoll Marketing Team Lead, at truckle@landadvisors.com or Steve Reilly, Senior Marketing Consultant, at sreilly@landadvisors.com.  For more information about Land Advisors Organization, please visit http://www.landadvisors.com or contact Tom Reimers at (949) 852-8288 ext. 28.

About Land Advisors Organization:

Land Advisors Organization specializes in innovative land brokerage through deep market insight and unparalleled client relationships. With an exclusive focus on land, Land Advisors Organization integrates current comprehensive information, cutting-edge technology and geographically specialized professionals to help our clients identify and capitalize on valuable opportunities in all kinds of economic environments.  The Land Advisors Organization employs a true collaborative brokerage model with offices located throughout Arizona, California, Florida, Idaho, Nevada, New Mexico, Utah and Texas.

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Land Prices Are Not the Only Thing Rising….

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Ever heard of someone saying “when things are on a roll…enjoy it while it lasts, ‘cause it never does.” Well, I guess you could apply the same logic to interest rates.

Looking at how the tear land values have been in the last 12 months, it seems things are starting to cool off and the industry is taking a collective breath.  When the Federal Reserve Chairman speaks and hints at future actions regarding interest rates, the market is clearly listening.  In case anyone missed it, interest rates have risen for the better part of 100 basis points since May causing new home sales to slow and robbing buyers of purchase power, which illustrates that the housing recovery is still fragile and changes need to be addressed delicately as we move forward.  That being said, I think home buyers are realizing that low-interest rates will not last forever and they should engage while they can.

Link: http://blogs.wsj.com/developments/2013/07/16/rising-mortgage-rates-home-builders-shrug-them-off/

Source: Ryan Long, Senior Marketing Consultant, (916) 784-3329 ext. 16

San Diego County: A Shortage of Land in a Housing Market Screaming For Inventory

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You don’t have to be a whiz at Economics 101 to understand the supply and demand imbalance affecting available housing and developable land in San Diego County.  You only need to drive around town or talk to neighbors in order to understand that the County is poised to experience a crises with respect to finding available housing to meet the demand.

According to the San Diego Association of Governments, the pace of residential building permits in San Diego County over the last five years is about half of what the region now needs each year (12,000 units needed annually).  In addition, only approximately 4,300 resale homes are currently on the market within San Diego County – a four year low according to numbers from the local Realtors Association.  A six month supply of housing inventory has historically been associated with a balance in supply and demand.

Currently, there is less than a two month supply of housing inventory in San Diego County!

Building Permit Chart

The scarcity of housing supply has fueled double-digit annual increases in the median price of homes sold in San Diego County in each of the past seven months, according to Data Quick based in La Jolla.  Based upon a recent per square footage analysis from the Greater San Diego Association of Realtors, Single Family Home prices have risen 14% from a year ago and Condominium/Townhouse resale values have skyrocketed 21%.

According to Data Quick, the 19% gain in the price of homes sold in March 2013 was the highest annual gain seen since January of 2005 (a few months before the peak in home values prior to the recently past recession).

Would-be buyers active in the resale market must compete with a significant percentage of “all cash” buyers (now accounting for approximately a third of all transactions).  Thus, there is amped up demand for new homes which once represented one sale for every four to six resales.  New home sales made up only 7% of total residential home sales in San Diego County in March 2013.  The drop in market share shows that fewer homes are being constructed and fewer acres of developable land are available for builders.

Future demand for housing may only increase as unemployment eases and low interest rates (now below 4%) jump start throngs of current renters who understand that their total monthly obligations for a condominium or townhome are likely now less then the rent they are paying each month.

As a result, LAO is now seeing unprecedented demand for both entitled and un-entitled subdivision land throughout the greater San Diego Metropolitan Area.

Source: Bob McFarland, Marketing Consultant, (858) 568-7428

FRESNO: Fat Tuesday, Skinny Inventory

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Now is the time for homebuilders to open their stalled legacy projects. Beazer Homes recently closed out The Groves at Sunnyside Point, their neighborhood adjacent to KB Home’s Olive Lane new home community located in Sunnyside Fresno. New homebuilders will not have to compete as hard for new home buyers shopping the area.

HOME PRICES
According to the California Association of Realtors, Fresno County home prices increased 15.3%, but sales were down 22.2% from the previous year. Madera County saw prices increase 36.1%, but sales were down 24.4% from the previous year. However, sales are looking up with a 19.2% increase in sales from the previous month in Madera County.

December 2012 County Sales and Price Activity

Median Sold Price of Existing Single-Family Homes

# of Sales
County

12-Dec

12-Nov

11-Dec

MTM% Chg

YTY% Chg

MTM% Chg

YTY% Chg
Fresno

$157,620

$148,240

$136,740

6.3%

15.3%

-2.5%

-22.2%
Madera

$144,290

$113,330

$106,000

27.3%

36.1%

19.2%

-24.4%

Source: California Association of Realtors

UNSOLD INVENTORY & TIME ON MARKET
According to Land Advisors Organization research, unsold inventory in Fresno County decreased 7.3% from the previous year and Madera County decreased 47.4% from the previous year. The median time on market decreased 24.1% in Fresno County and increased 25.4% in Madera County from the previous year.

December 2012 County Unsold Inventory and Time on Market

Unsold Inventory Index

Median Time on Market
County

12-Dec

12-Nov

11-Dec

12-Dec

12-Nov

11-Dec
Fresno

3.8 Months

4.2 Months

4.1 Months

26.4 Days

26.3 Days

34.8 Days
Madera

2 Months

3.2 Months

3.8 Months

64.6 Days

27.9 Days

51.5 Days

Source: California Association of Realtors

FINISHED LOT INVENTORY
Home Buyer demand is escalating fast.  Quality resale inventory is sparse.  If you own 10 or more acres of land in the path of development, you should be at the City processing a subdivision map faster than Mardi Gras beads flying from a balcony overlooking Bourbon Street.  If you are not familiar with the entitlement process please contact me so I can help get you started.

NEW DEVELOPMENT
Fresno developers plan medical campus at Millerton Lake. FULL STORY

Source: Mark Utman, Marketing Consultant, (559) 549-6326

California Division: 2012 Year in Review

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LAO-CA Infographic 2012 YIR

Source: Tom Reimers, President, (949) 852-8288 x28

Fresno County Approved TTM Lots Going Once, Twice…

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Land Advisors Organization is pleased to say SHOUT! the handful of approved tentative tract maps (TTM) available for sale within Clovis’ city limits have been receiving multiple offers.  The City of Fresno is next to follow where lots previously located in “B” and “C” locations are quickly becoming the new “A” lots.   The time is now for developers and homebuilders to pounce on every reasonably priced TTM.  Call LAO’s Fresno office at (559) 549-6326 for a current list of available inventory.

POLL:  

HOME SALES:

  • Distressed homes sales are on the decline. FULL STORY
  • Home prices are up 18% from a year ago. FULL STORY

NEW DEVELOPMENTS: On November 7, 2012 The Madera County Board of Supervisors re-approved 4-0 the 1,656-acre, 5,190-home Tesoro Viejo planned urban community proposed by McCaffrey Group.

Source: Mark Utman, Marketing Consultant, (559) 549-6326

Central Coast Sales are Climbing!

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The Central Coast’s South Santa Barbara County submarket, which includes Carpinteria, Santa Barbara and Goleta, has seen a surge in sales volume to date with 199 closed transactions this past October.  Sales volume is WAY up and our trend line has now officially bounced above our 2005 sales volume numbers.  With all of this activity our current median price of $620,000 has also bumped up 2% from this time last year leaving us with one question … Where is the future inventory going to come from?  With thinning resale opportunities and virtually no foreclosed homes on the market prices are sure to jump again over the next six months. 

So what does this mean for Central Coast home builders looking for land opportunities along the Central Coast?  Finding the right land position has traditionally been very difficult in this supply constrained market so if you are a home builder looking to build along the Central Coast, please contact Matt Power at Land Advisors Organization’s Santa Barbara office at 805.845.2660.

Source: Matt Power, Senior Marketing Consultant, (805) 845.2660

LA – Selling Fast

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As the end of 2012 approaches, the Los Angeles infill residential market continues to see increasing momentum in both new home sales and demand for new land development.

Much of the demand for new projects in the Los Angeles basin stems from the steady flow of new home sales at projects throughout the county.  In particular, there are several townhome projects in the San Gabriel Valley including Azusa, Baldwin Park and Covina that have seen absorption rates in the four to six units per month range.  In Northeast Los Angeles, Pulte’s Mosaic, Heyday’s Buzz Court look to be on pace to selling out around the New Year, while Williams Homes Olive Glen project in the South Bay was named the fastest selling community in the southland.

Buyer demand for new attached or detached homes is triggering, both builders and developers, to get more aggressive when it comes to land deals. Many are even considering B and C locations. While there is not a significant supply of developed lots available in the infill markets, our team is beginning to see progressively more tract map and permit applications being processed in many cities. Through our vast database Land Advisors avidly tracks deals that are being processed and approved, allowing us the ability to tailor information to meet any acquisition criteria.  Whether it’s 5, 50 or 200 units you are looking for we can guide you to deals that meet your specific goals and needs.

Buyer Demand has triggered both builders and developers to get more aggressive for land deals.

Related Article:

http://ourweekly.com/los-angeles/olive-glen-called-fastest-selling-new-home-community-southland

Source: Chris Gomez-Ortigoza, Marketing Consultant, (626) 378-9840 x14

WANTED: FRESNO LAND DEVELOPERS

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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.

POLL: 

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)

NEW COMMUNITIES:

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

Indian Summer Stokes North San Diego County Coastal Market Activity

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With the mid-year 2012 turning of the corner in the housing market in San Diego County, demand for housing and residential land along the North County Coastal region has heated up quickly.  Among the 15 actively-selling developments featuring new single family detached housing, the rate of absorption is approaching an average of three sales per month per development.  Most of these developments offer lots averaging between 4,000 and 6,000 square feet with approximately a third of them featuring quarter-acre lots.  New home prices range from the high $500,000’s to $1,350,000, for unit sizes spanning from approximately 2,000 to 4,650 square feet.  Seller incentives are falling and are typically in the one to three percent range.  At the same time, new home prices have begun to rise and average approximately 1.2% higher per development than a year ago at this time. In early September 2012, there were approximately 90 remaining new single family detached homes available for sale along the north coast. This is equivalent to about two months of supply given the current pace of absorption among the actively-selling developments.

Consequently, this robust recovery in the new homes market has elevated subdivision land prices.  Land Advisors Organization has seen recent subdivision land sales in the North County Coastal regions capturing prices equivalent to finished lot values spanning from approximately $425,000 for 6,000 square foot lots, up to $620,000 for quarter acre lots.  Taking advantage of this market momentum Land Advisors Organization’s San Diego Team are currently marketing two outstanding coastal properties for sale: Quail Meadows – an approved tentative tract map for 33 quarter acre lots in Encinitas and Meadowlark Canyon another 33 lots averaging over 5,000 square feet each.  The Meadowlark Canyon site is located in San Marcos, near that cities’ border with neighboring Carlsbad.  Team San Diego will also soon be marketing an ocean close property in North Coastal San Diego in concert with Land Advisors Organization’s outstanding Orange County Team. Details regarding this trophy property will be released in early October 2012.

For more information, please contact Bob McFarland or David Landes at (858) 568-7428.

Source: Bob McFarland, Marketing Consultant, (858) 568-7428 ext. 12

Fresno & Madera Counties Heating Up

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Good news, Madera is on the rebound.  Better news, you can still find improved finished lots below replacement cost….better hurry because prices are expected to increase!  FULL STORY

VACANT FINISHED LOT INVENTORY BY THE NUMBERS

CLOSINGS: August 2012 – Land Advisors closed seven vacant lots within Tract 5351 to a private homebuilder.  The private homebuilder bought the lots to expand its presence in the City of Clovis.

HOME SALES: Existing homes in Fresno are selling fast!  In June, Fresno resales reported a median of 43 days on market compared to a median of 90 days on market at the peak.  This represents a 52.2% decrease in days on market for Fresno.  FULL STORY

FEES: City development fees for Coalinga have been waived until April 2013.  Contact Matt Power at (805) 845-2660 or Mark Utman at (559) 549-6326 for further details.

NEW DEVELOPMENTS: The controversial high speed rail construction along Highway 99 has been delayed until 2014. FULL STORY

Source: Mark Utman, Marketing Consultant, (559) 549-6326

New 360 Acre Development Coming to Monterey County

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City of Del Rey Oaks and Brandenburg Properties are preparing to team up to develop 360 acres of undeveloped Fort Ord land.  The City would like to see a low-density residential development and a hotel with condominium units and they would like to see “green, sustainable” development, including the use of cisterns to help with water supplies.  The Del Rey Oaks land is generally located north of South Boundary Road and east of General Jim Moore Boulevard.  Part of the project lies next to Fort Ord acreage the city of Monterey has planned for eventual development. FULL STORY

New Monterey County listing hits LAO

The Central Coast Team of the Land Advisors Organization is pleased to present Parcels D & E featuring 13.51 multi-family acres for ±378 apartment units.  The subject sites are located in Monterey County along scenic U.S. Highway 101, within the northerly reach of California’s Central Coast and in the heart of the famed Salinas Valley. Soledad is known for its natural beauty, moderate climate, and abundant agricultural products. Soledad is now home to more than 17,000 residents with a mix of early 20th century architecture with a charming historic downtown commercial district and vibrant new residential neighborhoods.

Contact: Matt Power at (805) 845-2660 or Jim Radler at (916) 784-3329 for more information on Parcels D & E.

Source: Matt Power, Senior Marketing Consultant, (805) 845-2660

Window of Opportunity in Ventura County

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Land Advisors’ Ventura County Team (comprised of Michel Faris, Randy Coe, and Richard Byrd) are pleased to offer an exciting new listing in the Ventura County submarket. The new ±8-acre listing, known as Northbank Meadows is a rare multi-family development opportunity in the highly desirable yet extremely supply constrained City of Ventura.

Historically, homes within Ventura County are highly sought after by homebuyers because of the County’s easy-going, high-quality beach lifestyle, in addition to its proximity to L.A. County job centers. Longstanding development constraints have kept Ventura County from over-development.  Amid the slow growth, land values in the submarkets are holding steady and homebuilders and developers are taking another glance at opportunities in the area as the macroeconomic environment improves.

County Home Sales Up; Median Price Falls via VCStar.com:  Ventura County home sales increased slightly last month, while median prices continued to drop despite record-low mortgage rates… DataQuick reported that 561 homes sold in Ventura County in January — an increase of 2% compared with the same time last year. The sales include new homes and resold single-family homes and condos.  DataQuick also reported the median price of homes in Ventura County at $322,500, a 7.9% decrease compared with the same time last year. Read more

Source: Michel Faris, Marketing Consultant, (949) 852-8288 x14

KB Home Changes the Rules in Santa Clarita Valley

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“When people are giving directions to their home, they always refer to some unique feature of their house as a landmark,” said Tom DiPrima, Executive Vice President, KB Home Southern California Division, in a recent Santa Clarita Signal article. “Buyers don’t want a cookie-cutter look to every home on the street.”

KB Home recently opened a new home interior design center in Santa Clarita, one of only three in Southern California.  With the opening of the center, the public homebuilder is putting homebuyers in the driver’s seat by offering customization choices that were nearly unheard of in prior market cycles, including lot selection without imposed lot premiums. 

KB Home is currently selling homes from three new communities within the Santa Clarita Valley, making it one of the most active builders in this submarket.  Home prices range from the mid $300,000’s to the high $500,000’s. Other active builders include Pardee Homes, K. Hovnanian Homes, Lennar, Shapell Homes, and D.R. Horton.

The Santa Clarita Valley is a desirable location for Southern California families as it is known as one of the safest communities in the U.S. and offers multiple high ranking schools. 

The majority of the Valley’s future developable lots are currently under the control of only a handful of developers.  Therefore, residential land opportunities are a precious find right now in this favorable submarket.

The Land Advisors team recently secured a new listing in the Santa Clarita Valley.  Stay tuned for more details to come!

Source: Michel Faris, Marketing Consultant, (949) 852-8288 ext. 18

1.21 Gigawatts?! Trying to Get Back to the Future in Fresno…

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It seems as though the Fresno residential land market is revisiting its past… residential raw land is currently selling for prices paid back in 2000.  During the market peak five or six years ago, unimproved vacant land in “A” locations sold in Fresno for $300,000 per acre.  Today it’s going for prices ranging from $60,000 to $85,000 per acre.

Local homebuilders are in the early stages of reloading their land inventory.  Housing Capital is playing a huge part, as the lender is one of a few banks enthusiastic to offer A, D and C loans.

Recent Land Deal:  Homebuilders are buying un-entitled dirt again but in smaller bites.  A local builder just purchased 10 acres of unimproved land in the heart of northeastern Fresno.  

Fresno local homebuilder Granville Homes is knocking the dust off of Westlake, a master planned community in west central Fresno that has been “mothballed” for the last five years.  The 430-acre project is now scheduled to break ground sometime in 2012.  Westlake is a promising master plan by a talented local builder.  This could spur a land rush from builders and developers alike looking to ride the coattails of this new community now anchoring West Fresno.

According to Fiserv, a financial analytics company, Madera is on the mend…  Fiserv identified Madera (about 25 miles northwest of Fresno) as a “winner” in a long list of sub-markets around the U.S. in terms of housing valuations.  The Chicago Tribune article states that home values across the Nation are anticipated to decrease in the coming year, but that home values in the Madera area will gain 15.5%!

Fresh from the FresnoBee.com News Blog… the number of foreclosures in the Central Valley fell during the third quarter of this year compared to the same time a year ago.  However, building permits are way down. In Fresno, only 19 single-family permits were pulled in September compared to 113 in August, and 120 permits a year ago at the same time. …Adapting to changing demographics and consumers’ needs, Lennar Homes rolls out a new model in the Central Valley.

So, despite Fresno residential land values resetting to decade lows, Land Advisors is looking to blast a few gigawatts into the market with two large Fresno area listings in early November – stay tuned!

Source: Mark Utman, Marketing Consultant, (559) 449-4500

New Conforming Loan Limits Create Uncertainty in California’s Bay Area

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Uncertainty remains high in the Bay Area residential land market following the drop in conforming loan limits to $625,000 from $729,000.

The Bay Area has 72 sub-markets (by Zip Code) where the median home price is now above the new conforming loan limit. What affect this will have on the recovery of the Bay Area housing market is still unknown. Chances are that the compression in loan limits will ultimately correlate to a compression in home prices although not necessarily on a dollar for dollar basis, and the affects could be widely different based on sub-markets.

Currently true “jumbo” loans are priced approximately 100 basis points above “jumbo conforming” loans. Assuming a $626,000 loan and jumbo rate of 5%, a potential home buyer keeping their monthly payment the same will lose approximately $150,000 in buying power.

This phenomenon is most likely to affect the market in the $800,000 – $1 million price point range.  The buyers of these homes would have formerly qualified for a “conforming jumbo” loan if they were putting down at least 20%.  However, they now will need a much larger down payment to stay under the new conforming limits.

At price points above $1 million we would expect there to be a smaller impact, as buyers in that price point have always had to get jumbo loans or put down substantial down payments.

Click the link to see a table outlining the Bay Area sub-markets by zip code with median prices above $625,000: http://www.dqnews.com/Charts/Monthly-Charts/SF-Chronicle-Charts/ZIPSFC.aspx

Source: Steve Reilly, Marketing Consultant, (925) 368-3128

W. Riverside County: Multi-Family Land is Hot…Or Not?

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Market Activity – Closed Deals: (Single Family Detached):  Two significant land transactions have closed escrow in the West Riverside County (WRC) sub-market within the last 30 days. In both cases, the buyer was not a public homebuilder. Active buyers in the land market are private investors seeking well-located paper lot and entitlement opportunities and are very bullish in the Cities of Temecula, Murrieta, French Valley, Moreno Valley and Corona.

Public homebuilders remain quiet and are focused on selling through projects they purchased in 2010. However, one public homebuilder does have two sites under contract in Temecula.

A number of other residential projects are currently in escrow in WRC and Land Advisors is on track to close two transactions by month’s end.

On The Market: (Multi-family – For Rent):  Two prominent apartment development sites are available for sale.  Both sites are well-located within the City of Corona.  Apartment land interest and perceived value remains optimistic.  However there have been few sales to justify this optimism. Land Advisors did list and sell Magnolia Village last year which remains the highest comparable apartment land sale in the market.

Building Permit Activity:  In Riverside County last month, builders obtained government permits for 473 units, (257 single family homes and 216 multi-family units – a majority of which are apartments). This is an increase from August which saw permits at 329 units (Source: Press Enterprise).

Source: Mitch Casillas, Marketing Consultant, (949) 852-8288 x23

Who’s Buying Lots in the South Central Valley? Locals, That’s Who!

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There’s an old saying that a land market bottom (or other markets for that matter) is defined at least in part by an absence of bona fide buyers. And while it has certainly seemed that way recently as the land market has been pretty quiet in the second half of the year, an interesting pattern is starting to emerge in California’s Central Valley.  Local investors, developers, and builders are judiciously re-entering the market and purchasing lots!  Some of these buyers are the same groups that sold out at the peak of the market, and are pocketing nice profits.

The perceived notion that the sky is falling and things will never get better is running rampant and some local buyers with the right long-term perspective are taking action now.

Source: Jason Hepp, Senior Marketing Consultant, (661) 702-9080 x14

Lowered Development Fees and More Jobs Headed to the Northern Central Valley

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Earlier this year, the City of Modesto lowered many of its development fees, including the one-time charges that pay for roads and other public facilities.  The City is lowering capital facility fees by 22% to 45% for residential and commercial projects. Read article: Modesto Bee

ECONOMIC IMPACT:  The University of California, Merced began initial operations in July 2000 and has since contributed approximately $650 million to the San Joaquin Valley economy.  With over 5,000 students currently enrolled, the City of Merced is becoming a hot spot for student housing development, and is anticipating more jobs in the horizon. http://ucmercednews.blogspot.com/2011/09/university-of-california-merced-has.html

Many residents of the Central Valley are looking forward to progress with construction of the proposed high-speed rail, which was approved in 2008.  This mega project is surrounded by loads of controversy, but is estimated to bring approximately new 83,000 jobs to the Central Valley. Read article: Central Valley Business Journal

EMPLOYMENT FACTOR:   As is the case in most homebuilding sub-markets across the country, homebuilders and developers in the Central Valley are eagerly awaiting decreased unemployment and increased consumer confidence, in hopes of jump starting new home sales.

California’s unemployment rate increased to 12.1% in August. However, with the summer growing season in full swing and harvesting of some crops underway, the jobless rates in the Central Valley dipped a bit in August.  Read article: Central Valley Business Times

Here are the August 2011 Central Valley unemployment rates, followed by those from July 2011, which are in parentheses. All are estimates: (Source: Central Valley Business Times)

  • Fresno County, 15.8%; (16.7%)
  • Kern County, 14.4%; (15.5%)
  • Kings County, 15.3%; (16.1%)
  • Madera County, 14.4%; (15.4%)
  • Merced County, 17.5%; (18.7%)
  • San Joaquin County, 16.1%; (17.5%)
  • Stanislaus County, 16.0%; (17.5%)
  • Tulare County, 15.7%; (16.6%)

Source: RJ Radler, Senior Marketing Consultant, (916) 784-3329 x12

San Diego County Land Prices Pushing UPWARD

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Residential land prices in San Diego County are trending up!  Check out the San Diego Business Journal article this week, where Land Advisors’ Senior Marketing Consultant, David Landes, discusses the County’s residential (single family & multi-family) land trends. READ HERE: San Diego Business Journal Article

Public and private homebuilders and developers are showing strong interest in big residential projects throughout San Diego County.  Land Advisors is receiving a large number of inquiries from around the U.S. and abroad for the Lakes above Rancho Santa Fe, a 248-lot project in the Santa Fe Valley.

Heard on the Street: Davidson Communities, who has been building homes in the Carmel Valley corridor for nearly 30 years, is rumored to be under contract to sell a portion of its Fairbanks Country Villa project.

The San Diego South Bay market (Chula Vista) is starting to heat up.  Builders and developers are working on future residential projects in anticipation of an economic turn.

New home projects in Coastal San Diego are doing well.  City Ventures and K. Hovnanian have recently started building communities.  Look for sales flags in Leucadia and Carlsbad.

Multi-family product remains hot.  Watch for a few cities to start considering re-zoning land from industrial and commercial use to residential use.

Redevelopment funds: Builders and developers need to continue to pressure their politicians to fight for redevelopment funds which are threatened by Sacramento. This will have a big effect on future downtown San Diego development and potential relocation of the San Diego Chargers NFL team.

Source: David Landes, Senior Marketing Consultant, (858) 568-7428

Lakers Game Anyone?

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With all the negativity shared around the real estate industry these days, the California Division’s “Team SB” (known for its cheerful demeanor and rosy disposition) is pouring optimism from the half-full glass in this week’s Landed blog post:

  1. Despite volatile market conditions, single family lots are still trading to public and private builders in well-located sub-markets along the I-15 Corridor. Several properties zoned for residential use are currently in escrow in Fontana, Rancho Cucamonga and Eastvale/Dairylands.
  2. New homes sales are slow throughout San Bernardino County, however, a few communities are selling quite well. For example, Beazer Homes’ (BZH), The Enclave at Crafton Hills, located in Yucaipa, has sold 9 homes in the last two months. Land Advisors originally sold the Crafton Hills lots in “finished” condition to Beazer in late 2010.
  3. Beaumont has been one of Richmond American Homes (MDC), strongest selling sub-markets this year. The public builder’s two actively selling communities are Kensington at Tournament Hills (from low $200s) and Woodhaven (from the upper $100s).
  4. If there is in fact an NBA season (please God!), don’t miss the Lakers game at Citizens Business Bank Arena (next to Team SB’s multi-family listing: Piemonte at Ontario Center) on October 12th.

Team SB covers residential land activity in San Bernardino and Northwest Riverside Counties. For more information on this sub-market (or more cheery market insight), please contact Doug Jorritsma, Senior Marketing Consultant, (949) 852-8288 x13 and Winn Galloway, Marketing Consultant (949) 852-8288 x27.

Urban Infill: War and Peace in the LA Basin

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The Land Advisors Urban Infill team is currently working with several developers who have recently submitted tentative tract maps, are revising existing tract maps, or intend to submit new tract maps for for-sale housing developments.  The Team is seeing the highest concentration of activity in Northeast Los Angeles (Echo Park, Silver Lake, Eagle Rock, and Glassell Park).

The City of Los Angeles Department of Building and Safety’s September newsletter revealed that the City’s number of housing starts year-to-date is still low (-31% YOY).  However, plan check revenue is up (41% YOY), indicating an upswing of future housing supply.  Newsletter Sept 2011

Ideally located new home communities selling well-designed homes are showing strong sales numbers. In the third quarter, the Urban Infill Team led the closing eight single family attached lots at Lennar’s Playa Vista. In response to the growing demand for additional product in Playa Vista, Lennar closed the 2nd and 3rd lot take downs four months early. 

Los Angeles Land Use Update:  The Planning Department’s Code Studies Section unveiled late last week a draft ordinance that would allow the creation of site-specific development rules that could loosen-up laws on density, setbacks and open space requirements. The new process, called Planning Unit Development, is part of the Department’s 3-year-old effort to streamline the Municipal Code while also encouraging more public participation. Some might say those goals are as congruent as war and peace. http://www.landusela.net/2011/09/planning-dept-unveils-latest.html

Source: Tim Barden, Marketing Consultant, (949) 852-8288 x30, and Richard Byrd, Senior Marketing Consultant (626) 376-9840 x13, and Chris Gomez-Ortigoza, Marketing Consultant, (626) 376-9840 x14

Who’s that Buyer in the Antelope Valley?

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The most active buyers currently picking up land in the Antelope Valley right now are private investors who have been trading land in the sub-market for decades.  City Ventures recently closed on the 585-Acre Joshua Ranch in West Palmdale. No new deals have transacted in East Palmdale since February 2010.

Two Lancaster deals to note that were brokered by the Land Advisors’ High Desert Team in recent months:

  • The Reserve – 32 Finished Lots in West Lancaster
  • Falcon Point – 219 Finished and Semi-finished Lots in East Lancaster

Only a handful of residential land REO’s remain available for sale within the Antelope Valey sub-market.  Land Advisors currently has three of approximately the five total exclusive listings.

Development impact fees have held steady, with little or no change in rates in the City of Lancaster in 2011.

Source: Michel Faris, Marketing Consultant, (949) 852-8288 x14

Fresno?… Fres-YES! Permits, Pigskins & Progress

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  • New home sales in Fresno and Madera Counties are still slumping www.ksee24.com
  • City of Fresno & City of Clovis together have 2,200 vacant finished lots.
  • Central San Joaquin Valley Single Family Permits pulled YTD = about 760
  • Foreclosures are down – www.thebusinessjournal.com
  • Fresno County unemployment is still hovering around 17%
  • One public homebuilder made the most notable lot purchase in 2011 – $85,000 per finished lot in a highly desirable area of Clovis
  • This month, the City of Sanger (15 minutes west of Fresno) eliminates development fees for new home construction. www.ksee24.com
  • 3Q 2011 – Land Advisors sold 17 acres in Clovis and 112 partially improved lots in Fresno.  Both were bank REO transactions.
  • Although many REOs sold to investors in 2011, there are still opportunities for investors to buy distressed lots/land.
  • Earlier this year Bonadelle Neighborhoods broke ground on the Brighton Master Plan. The first neighborhood will have 161 lots.  First home closing is scheduled around Thanksgiving. 
  • This summer Wilson Homes began construction on Herndon Avenue, building their new plan called “elev8ions” elev8ions.com
  • Last Saturday Fresno State Bulldogs traveled to Cal Berkeley… unfortunately the “Dogs” lost 36-21.  Next game is this Saturday at Nebraska.

Source: Mark Utman, Marketing Consultant (559) 449-4500 x127