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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Move-Ups Step Up in Placer County

The Granite Bay / Loomis submarket is known primarily as an affluent re-sale, move-up market with great schools.  During last decade’s housing boom, the Sacramento region experienced unprecedented residential land entitlement.  However, the area has seen a lack of building activity in recent years, and now homebuilders are thinking of new ways to standout to attract buyers.  The Northeast Sacramento submarket has attracted several custom homebuilders looking to differentiate themselves from typical run-of-the-mill production homes, as standard production homes have seen heated competition (and downward price pressure) from the small number of qualified new home buyers looking for entry-level product.

Two builders in particular have found success finding move-up custom and semi-custom buyers in the unpredictable economic environment.  First, Kinetic Investments purchased Sierra De Montserrat in Loomis last year.  Initially, the private builder had no plans to begin construction right away, but it has already sold three of the 62 lots.  The home sites range from four to six acres apiece and are priced from the high $100,000 to $400,000’s.  At the market peak in 2006, “finished” lots in this submarket traded for anywhere from $600,000 to $900,000 per lot.  Now builders and investors can get their hands on the same lots for $100,000 to $300,000.

The Collection at Granite Bay is another community that has experienced notable success selling semi-custom lots.  Land Advisors Organization brokered the transaction in 2010 when The New Home Company purchased the community from Wells Fargo.  Of the 17 total lots, two semi-custom home sites have sold in the last couple weeks, and four more homes are currently under construction now. Pricing for The Collection at Granite Bay starts in the high $500,000’s.

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