Monday, August 3, 2009

After Zero Residential Lot Transactions in the First 6 Months of 2009, Q3 is Off to a Good Start

Aaron West-Guillen / Land Specialist
Posted by: Aaron West-Guillen
Land Specialist / Land Entitilement Consultant
775 336 4674

Aaron West-Guillen has 15 years of land acquisition, entitlement and development experience in northern Nevada.

After zero residential lot transactions in the first 6 months of 2009, Q3 is off to a good start. Based on available data, here is what I can make of the transactions in July:

Ryder Homes has stepped into Shadow Ridge (Pyramid Hwy north of Calle de la Plata), purchasing 52 finished lots and 10 partially completed homes from Bank of America (which foreclosed on Syncon Homes). Word on the street puts the finished lot value at $25k per, which provides an average of $115k for the partially completed homes. I wonder where that puts a value for the remaining 126 paper lots still owned by B of A?

Lewis Operating Corp. has purchased a substantial portfolio from Landsource Communities Development LLC out of bankruptcy. Including:
  • Pioneer Meadows Village II – 34 finished lots in Spanish Springs for $25.5k per lot.
  • Damonte Ranch Phase 5 – 214 mapped lots and 410 paper lots in south Reno. Nothing to back this up, but the math works out perfect at $10.5k for mapped (includes water) and $4k for paper. Hopefully the applicable credits were included, considering all the off-sites and grading completed.
  • Copper Canyon – 102 finished lots and over 100 paper lots in Dayton. Even if the paper lots were free, that would put the finished lot cost below $20k per; my guess is somewhere around $16k finished and $3 paper.
Does this mean the positive indicators over the last few weeks are finally leading to money coming off the sidelines? At these values it’s hard to see how anyone could get hurt…

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