N. Central Valley Gears Up for Recovery

Land Advisors’ Northern California Team is proud to announce that it recently closed 507 single family lots in finished condition in the northern part of the City of Merced, a project known as Bellevue Ranch West.  The buyer is a long-time local farming family who plans to hold the asset as a long-term investment.

Although little building activity is occurring in Merced County at the moment, K. Hovnanian Homes is currently open and selling homes in one project.  The project, known as Eagles Ridge, is an active adult community in the Santa Nella market.

Despite the fact that Merced County new home closings are projected to hit a post-crash low volume in 2012 (off 98.9% from peak new home closing volume), year-to-date home prices are starting to rebound for regular re-sale and REO transactions with each up 2.47% and 1.96% respectively from their troughs. In addition, foreclosure sales (borrower-to-lender) are down 75.13% year-to-date from the 2008 peak.  REO (bank-to-new-buyer) sales are down 71.38% from their peak in 2009.  Our interpretation is this represents a positive sign that the overall Merced County housing market is healing – slowly but surely. (Source: Housing Intelligence Pro by Hanley Wood)

BIG LISTING: As part of a recent major lender-owned land listing for the California Division of the Land Advisors Organization, the Land Advisors Northern California Team covering the North Central Valley is actively looking for buyers for six assets in the bank’s portfolio.  Collectively, the listed assets include 479 single family homes in varying stages of development.  These asset sales represent the last few remaining bank-owned deals in the North Central Valley.  They should attract multiple investors and likely a few builders as the chance to buy lots well below replacement cost dwindle statewide.

Asset Breakdown:

  • Atwater:  Stonecreek – 129 Single Family Detached Lots in Finished Condition;
  • Winton:  Winfield Station – 22 Single Family Detached Lots in Finished Condition;
  • Modesto:  Thomas Terrace – 9 Single Family Detached Lots in Finished Condition;
  • Ceres:  Bing Cherry Estates – 39 Single Family Detached Lots in Finished Condition;
  • Merced:  Amberly Court – 162 Single Family Detached Lots in Rough Graded Condition (on 15.93 acres); and
  • Sage Creek – 118 Single Family Detached Lots in Rough Graded Condition (on 13.55 acres).

Other North Central Valley Updates:  San Joaquin County is experiencing improved new home sales in the towns of Mountain House, Manteca, and Lathrop.  New home projects are getting started in Stanislaus County, with two in Oakdale and one in Patterson.

Slow and steady as they are… all signs of building activity in the North Central Valley show that we are on our way to recovery!

Source: R.J. Radler Senior Marketing Consultant, (916) 784-3329 ext. 12; and Jim Radler Senior Marketing Consultant, (916) 784-3329 ext. 11

 

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High Desert Team Finds Buyer for Former Frontier Homes High Desert Portfolio

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.

Read the Complete Press Release Here