Master-Planned Project in the Inland Empire Marketed by LAO Makes Progress for a Year-end Close…

The Arantine Hills master-planned project in the City of Corona continues to move closer to reality. The project went under contract with The New Home Company in the 4th quarter of 2013 and is expected to close in December of this year. The New Home Company entered a joint venture with Tricon Capital Group, a Canadian real estate investment company, to provide acquisition financing and develop the community. They intend to re-plan and re-entitle the 276-acre project to include 1,300 homes, parks, and open space. They expect to break ground in 2016 to begin selling lots and new homes.

LAO is looking forward to a successful consummation of the transaction with The New Home Company and are very pleased in their efforts to develop this exciting new community in Corona.

Related links:

Wall Street Journal

The New Home Company Announces Planned Acquisition of Master Planned Community in Southern California

Press Enterprise

Corona housing development back on the drawing board

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

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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Otay Ranch Property Sold

Moller plans 1,000 homes starting about 2016 overlooking east side of Otay Lake

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A section of property from Otay Ranch’s master-planned community — 13A — overlooking Otay Lakes in eastern Chula Vista has been sold for $21 million with up to 1,007 homes planned to start construction in about two years.

The buyer was Moller Otay Lakes Investment and the seller, Otay Village (San Diego) ASLI V. David Landes and Greg Vogel represented the seller and the buyers represented themselves.

Landes said once development details have been completed, construction can begin on both executive and workforce housing.

East of the Moller property is Village 13B, overseen by Baldwin & Sons. It is projected to include about 900 homes, a 200-room resort hotel and up to 20,000 square feet of commercial space.

Stephen Haase, Baldwin’s senior vice president for forward planning, said Village 13B likely will follow by one or two years the westerly village. Both sections are currently located in unincorporated land and require approval from the county, possibly next year.

Otay Ranch, started in the 1980s, is about half way to completion, Haase said, with about 15,000 more homes planned on several more villages.

“We know we have demand because of population and household growth,” Haase said, “but it will be more measured than in the 2000s.”

Article published April 24, 2014 by Roger Showley at U-T San Diego

http://www.utsandiego.com/news/2014/apr/24/otay-ranch-land-sale-moller/

For more information please contact David Landes at (858) 568-7428 or Greg Vogel at (480) 483-8100

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

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

NorCal – Where’s the Inventory?

I keep reading that re-sale inventory is at historic lows and there are bidding wars on the small amount of re-sales that are sprinkled throughout the marketplace. This is good news on several fronts. The first being that pricing for both new home and re-sales are rising….and quickly I might add. The second is that people who are getting back into the market for a home are being beat out by all cash, quick close investors on re-sale inventory and therefore being directed to find homes from the builders. Finally, the builders themselves are running low on ready to build lots (inventory) and scrambling to backfill the demand which equates to land prices that are skyrocketing (30%+ increases in a matter of weeks depending on the market). Let’s hope that we find a normalcy in the market so we can enjoy the bull market ride in housing and land.

Links:
http://www.calculatedriskblog.com/2013/03/analysts-increase-2013-house-price.html#uh9KivlxCKGG4QDr.99
http://www.sacbee.com/2013/03/26/5292593/bidding-wars-breaking-out-in-sacramentos.html

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

SACRAMENTO EMPLOYMENT NUMBERS GETTING BETTER

Now that the election is over, everyone in the homebuilding industry can take a collective deep breath and get back to work.  In spite of our worst fears about policy failures, taxes and over regulation, new homes are selling in the region and selling well.  Even before the election, anxiety over the housing market seemed to be subsiding while confidence growing.  There are many factors including supply shortages, interest rates, and relative affordability but most notable, have been  the employment numbers for the Sacramento region.  They have finally dipped below the double digit level and it has provided a boost for the region so severely squashed by the residential market downturn.  If the trend continues on the employment side, look for positive growth in new housing no matter what our government looks like.

http://www.bizjournals.com/sacramento/news/2012/10/19/area-unemployment-dips-single-digits.html

http://www.bizjournals.com/sacramento/blog/sanford-nax/2012/10/job-market-improves-in-some-professions.html

http://www.builderonline.com/legislation/what-obamas-re-election-means-for-housing.aspx?utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=BBU_110812&day=2012-11-08

Source: Jim Radler, Senior Marketing Consultant, (916) 784-3329 ext. 11

WANTED: FRESNO LAND DEVELOPERS

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