Amid slow overall residential land sales activity in West Riverside County, a number of transactions are still moving forward, and are nearing the finish line.
West Riverside County has experienced few improved lot transactions in 2011, as the submarket hasn’t seen any “turned dirt” since 2009. A public homebuilder recently closed on approximately 90 “finished” lots in French Valley. Also, two escrows for “finished” lots are scheduled to close by year’s end:
A public homebuilder is buying a ±50-lot project located within the City of Wildomar.
A private investor is buying a +100-lot project located in Moreno Valley.
In regards to the apartment/for-rent land market:
A ±600-unit site is close to going under contract in Temecula, marking another significantly-sized apartment land escrow in this city in the last six months.
Corona still has two large apartment land projects on the market. It doesn’t appear that buyers are stepping up to the seller’s pricing expectations though. This may be due to sellers’ knack for overestimating rent appreciation in the coming years.
The Land Advisors’ West Riverside Team put two projects into escrow this month that are in the Menifee area.
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).