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: Busier Than You Think

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.

Source: Mitch Casillas, Marketing Consultant, (949) 852-8288 x23