West Riverside Report

MULTI-FAMILY: Last week Land Advisors’ West Riverside Team wrapped up the marketing of a 16.5-acre mixed-use (multi-family for-rent and commercial) site known as The Village at Magnolia Square, located in the City of Riverside.

With a lack of comparable land sales early in 2012, the initial challenge in selling the multi-family for-rent land was determining the market value.  Assuming a successful escrow and close, The Village at Magnolia Square will mark the third successful multi-family for-rent land sale in the West Riverside submarket (Land Advisors Organization has been a party to all three sales). With three transactions soon under its belt, Land Advisors’ has established a real value foundation for similar land sale opportunities in the submarket.

SINGLE FAMILY: On the single family detached home front, the overall market in West Riverside remains stagnate.  However, homebuilders are finding success in some areas of South Riverside County such as Temecula.  Stronger than expected interest from homebuyers is causing some homebuilders to increase home prices. If strong absorption rates continue, the finished lot and future lot supply within Temecula will quickly vanish, and likely result in pressure on lot sales in Murrieta, Menifee and Wildomar. One development company has already noticed this trend and purchased one development site and has another in escrow in Wildomar.

APPROVALS:  On Tuesday March 13th, the City of Wildomar heard residents’ environmental concerns for a proposed 151-acre residential project. The project will be developed into 315 single family homes with 3.5 acres dedicated to a commercial center and open space. 

In addition, Menifee’s City Council approved a new General Plan land use map after a two year-long process, with a vote of 4 to 1. The land use plan is the first element in writing for the City’s new General Plan and serves as the basic blue print for how land will be used going forward.

Source: Mitch Casillas, Marketing Consultant, (949) 852-8288 ext. 23

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

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