|
Westgate Estate Lot Development
Rancho Mirage, CA
www.nccmwestgateliving.com
Closing:
During Escrow negotiated 50% increase in land size by purchasing
seven additional acres from the golf course for $43K an acre. During
Escrow, negotiated for the right to build one lake and water feature
on the course.
Entitlement:
Projected to secure final map within 12 months of purchase of the
property. While still providing play for the golf course by setting
up temporary greens. Structured an agreement to obtain water and
sewer from the adjacent property owner. (These utilities were not
available at close of escrow to the site).
Sales
accomplishments:
Positioned and branded the Westgate Development as on of the premier
residential communities in the desert with anticipated home sale
prices on par with the ultra high end homes in the desert. (Anticipated
finished home prices in Westgate are 2.5 to 10 Million.) Prior to
Westgate sellout, no homes in Westgate sold for over 1.2 million.
After Westgate, production homes in the club are selling for 1.2
million and estate homes for over 3 Million.
Home
prices adjacent to Westgate development have appreciated 50% in
one year, when other home prices in the Valley have increased 30%.
Average
lot price obtained: $630K. Prior comps in the club were less than
$400K, thus demonstrating the marketing and branding effectiveness
of the NCCM and B&A team.
Polled
almost 2/3 of the lot buyers to determine design preferences and
discuss privacy vs. view tradeoffs.
Developed
architectural and landscape design guidelines that optimized buyer
preference to first and foremost provide ultimate privacy while still
maintaining mountain views.
The
senior planner at the city of Rancho Mirage stated that this was
the best thought out high end development he has seen because of
the design guidelines. This planner, Carl Bishop has been with the
City of Rancho Mirage for over 10 years.
Investment results:
- 65% IRR to ING Realty Partners (institutional investor)
- Negotiated purchase of adjacent land to almost double size of target property prior to close of escrow
- Acquired target property in May of 2003
- Obtained full residential development entitlements of target property and adjacent land in November of 2003
- Completed golf course improvements by January of 2004 to better market properties
- Sold out (contracted) all but one estate lot by March 2004
- Closed all escrows but one by October 2004
- Completed all horizontal improvements under budget - roads, water, sanitary sewer, storm drainage, grading, electric, phone, cable, common area improvements, golf course improvements, entry features/water features, and two large lakes.
- First investment of this kind managed by NCCM affiliate – accomplishments in this new area of expertise were the result of significant hands on management, research, and strategic alliances formed with experts in golf course community development and with local developers.
Property Video Tours:
|
|
