Anybody want to go in with me on this Irvine property?

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annuitypro said:
www.welcometolambertranch.com

only $70,000,000!
Click to expand...

This property was planned with different products 6 years ago. Kovach marketing, SWA, and Robert Hidey teamed up on this TIC-less property. At that time Lambert Ranch was going to piggy back from the success of its immediate neighbor Portola Springs. The success never came and Lambert Ranch lost its gamble. Design fees in the millions were spent and not a single foundation was poured. Lambert Ranch is way in the red and could not hold out like TIC. Selling it is the sign of desperation. The owner of Lambert Ranch is the infamous Jeffrey open space hobo.
 
If they really want to sell this property, they need a better website with more information.

1. How many lots are approved? Am I supposed to count for myself off the site plan?

2. What is the cost of completion? Someone must have done some cost estimates so I know the costs on a per-lot basis.

3. What fees have been paid, and what is owed?

4. What off-site improvements are required?

5. Has the CFD been established?

6. When do the current entitlements expire? Have the bonds been paid?

7. What other costs are buried in any a memorandum of understanding (MOU)?

Maybe this site is supposed to solicit contacts for further due diligence. I don't know. If I had the information above, I could plug the numbers in above, I could back out their assumptions on sales price. It would probably be worth a laugh.
 
Well, it looks like they have 169 lots as mapped. So that would be about 415.000.00 per lot with no improvements made per the recent photos on the site. Heck, in another six months you will be buying homes in the area for that same amount. I hope the Strawberry biz stays profitable for awhile.
 
IrvineRenter said:
If they really want to sell this property, they need a better website with more information.

1. How many lots are approved? Am I supposed to count for myself off the site plan?

2. What is the cost of completion? Someone must have done some cost estimates so I know the costs on a per-lot basis.

3. What fees have been paid, and what is owed?

4. What off-site improvements are required?

5. Has the CFD been established?

6. When do the current entitlements expire? Have the bonds been paid?

7. What other costs are buried in any a memorandum of understanding (MOU)?

Maybe this site is supposed to solicit contacts for further due diligence. I don't know. If I had the information above, I could plug the numbers in above, I could back out their assumptions on sales price. It would probably be worth a laugh.
Click to expand...

IR,

I think the seller is targeting the industry people with appropriate personnel pursuing due diligence. Most or all of the planning done prior to the bubble is obsolete. Developers preference is to start from scratch with new planning strategy to deal with the sluggish market.

Lot sizes that made sense pre-bubble era will perform poorly in the post bubble era. Street layouts dictated by lot size have to be moved. I believe the streets and utilities are not in.
 
bkshopr said:
IrvineRenter said:
If they really want to sell this property, they need a better website with more information.

1. How many lots are approved? Am I supposed to count for myself off the site plan?

2. What is the cost of completion? Someone must have done some cost estimates so I know the costs on a per-lot basis.

3. What fees have been paid, and what is owed?

4. What off-site improvements are required?

5. Has the CFD been established?

6. When do the current entitlements expire? Have the bonds been paid?

7. What other costs are buried in any a memorandum of understanding (MOU)?

Maybe this site is supposed to solicit contacts for further due diligence. I don't know. If I had the information above, I could plug the numbers in above, I could back out their assumptions on sales price. It would probably be worth a laugh.
Click to expand...

IR,

I think the seller is targeting the industry people with appropriate personnel pursuing due diligence. Most or all of the planning done prior to the bubble is obsolete. Developers preference is to start from scratch with new planning strategy to deal with the sluggish market.

Lot sizes that made sense pre-bubble era will perform poorly in the post bubble era. Street layouts dictated by lot size have to be moved. I believe the streets and utilities are not in.
Click to expand...

Based on the $415,000 cost per paper lot calculated above, I would say they will be discounting this property rather significantly if they want to sell it.

You are probably right that it will need to be re-entitled. If the discount is steep enough, someone might buy it and build it out as is and simply compete on price.
 
Portola Springs is on both sides of the Lambert Ranch property. TIC would benefit the most from buying this property @ $1.37 million per acre and achieve a much more efficient lot layouts when the properties are combined into one contiguous properties. $1.37million per acre was the price when Westpark was developed. (1985).

If I were TIC I would buy this (cheap per Ranch standard) land and blend the land residuals together and pass on the saving on to the consumers by lowering the value ratio of the selling price to attract buyers to Portola Springs. When home prices are competitive enough to match VOC consumers would choose a TIC village.

TIC could really keep cost low when its utilities are already in at both sides without having to run fresh lines to Lambert Ranch. Equipments, trades and marketing are already out there. It is a win win situation for TIC and lose lose proposition to any other developers in buying this property.

The size of this property does not generate enough of critical mass for construction and operational cost savings for other developers.
 
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