Tag Archives: New Homes

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

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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

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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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Otay Ranch Property Sold

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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

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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

NorCal – Where’s the Inventory?

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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

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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

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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

Nothing Quiet on the Orange County Front

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Although January and February are typically known as the “slower” months in the real estate world, homebuilding activity in Orange County is off to a roaring start in 2012!  See what’s making the news here locally:

  1. Trumark Homes and Brookfield Homes are proposing to revitalize a Lake Forest auto mall with 75 single family homes and 151 condos – the properties are located around Auto Centre Drive.
  2. Sales continue to move product within Shea Homes & Standard Pacific’s new Blackstone master plan in Brea. Also, Jamboree Housing recently opened its 94-unit affordable Bonterra apartments within the community.
  3. FivePoint Communities broke ground on the first phase of its Great Park Neighborhoods at the end of January.  Phase one totals approximately 726 units :: www.greatparkneighborhoods.com
  4. Beach Boulevard in Huntington Beach is seeing renewed activity in the proposed mixed use developments at prime corners such as Beach and Ellis, and Beach and Warner :: http://www.ocregister.com/articles/project-283504-beach-review.html
  5. Be on the lookout for some new Land Advisors listings here in OC!

Source: Allison Rawlins, Marketing Consultant, (949) 852-8288 x26

Santa Maria… Where are the builders?

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A few weeks ago, the City of Santa Maria, Community Development Department (CDD) released its list of residential projects in the development process with the number of building permits issued by the City from July 1, 2011 through December 31, 2011.

As you can see from the chart below, the Santa Maria CDD shows there are 669 future single family dwelling units and 633 multifamily condominium units that are either approved or pending approval, for future development.

One new home community by the Towbes Group is actively selling new single family homes with floor plans ranging in size from 1,208 to 2,043 square feet. “Lavigna” is a well-amenitized gated community with a pool and recreational area.  

To date, Lavigna is the only new home product currently available within the City of Santa Maria.  But even with Lavigna, the ample lot inventory indicates that Santa Maria still has room for another builder. 

This leaves us scratching our heads…. When are all these units going to be built? And who is going to build them? 

Other News from the Central Coast

Via TheBusinessJournal.com: Visalia-based Mangano Homes, Inc. is developing the mixed-use Marsh Street Commons project in the heart of San Luis Obispo. Though the recession took a toll on the San Luis Obispo market as it did in the Valley, the Central Coast town has shown a certain tenacity in the past. Read complete article.

Via RENTV.com: The Village at Broad Street Family Apartments, a new 42-unit affordable housing project in San Luis Obispo, just celebrated its grand opening to the public. Developed by ROEM Corporation, the project is located at 2240 Emily St. Read complete article. 

The Village at Broad Street also recently held its grand opening for the new Fresh & Easy Neighborhood Market which turned out to be a huge success.

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

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

D.R. Horton Hears a Who

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While many of the public homebuilders are sitting on the land-buying sidelines this quarter, D.R. Horton hears the call to purchase more land!

Land is scarce in the fictional city of “Whoville” so the D.R. Horton team has taken to several cities in the Inland Empire, and recently closed on transactions in both Eastvale and Chino. 

The Eastvale site consisted of 173 entitled lots just west of the I-15 Freeway. 

Following the mantra of the 1954 book with a similar name, “a deal is a deal no matter how small,” D.R. Horton closed on 43 finished lots in the College Park master planned community. 

In addition, in the first quarter of 2011 Land Advisors assisted D.R. Horton in the acquisition of 53 lots adjacent to California State University – San Bernardino.

2011 TEAM “SB” YEAR IN REVIEW: 

Despite a sluggish market, the San Bernardino Team (Doug Jorritsma & Winn Galloway) participated in several transactions totaling more than $84 million in 2011.  The majority (57%) of transactions was conventional sales; REO’s only accounted for approximately 36% of all transactions.  The Team anticipates the number of REO’s to decline moving into 2012, as many troubled assets have already worked their way through the market. 

On the Buyer side, private investors lead the way totaling 36% of all San Bernardino Team transactions in 2011.  Of the last five transactions, four were purchased by private investors looking for unimproved land for long term hold.   

Echoing the sentiments of the mayor of “Whoville,” “We are here” at Land Advisors to help you with your land needs in 2012.  Merry Christmas and a Happy New Year!

Source: Doug Jorritsma, Senior Marketing Consultant, (949) 852-8288 x13 and Winn Galloway, Senior Marketing Consultant, (949) 852-8288 x27