PAINTED HILLS AT JP RANCH CALIMESA

Transcription

1 PAINTED HILLS AT JP RANCH CALIMESA 65 FINISHED LOTS WITH RECORDED MAP Offering 65 Lots Calimesa Country Club Singleton Heights EXCLUSIVE OFFERING MEMORANDUM WDLAND.COM 94 Discovery Irvine, CA ph BRE # Tom Doyle Founding Principal , X 11 tdoyle@wdland.com Heather Bradley Project Coordinator , X 21 hbradley@wdland.com

2 TABLE OF CONTENTS TABLE OF CONTENTS Page No. Project 1 Process & Timing 3 Location Maps High Aerial 5 Regional Map 6 Local Map 7 Low Aerial 8 Maps, Site Plans and Renderings Sales Phasing Map 9 Lot Premium Chart 10 Lot Premium Map 11 Page No. Development Rendering - Recreation Center 12 Recreation Center Front/Rear Elevation 13 Overview 14 Due Diligence Materials 15 Assigned Schools Exhibit 17 Market City of Calimesa 18 Competitive Projects 19 Site Photos 22

3 PROJECT Painted Hills benefits from being included in the desirable Yucaipa-Calimesa School District which is recognized as being superior to other school districts in the area. JP Ranch was originally approved as a large Master Planned Community consisting of 3 Primary Tracts, (the subject property), (80 lots also owned by Highpointe) and the undeveloped (Owned by RES One and the Perisits family and located east of Bryant St.). Approvals under the specific plan could ultimately allow for the development of 807 homes. These three owners hold title to properties within the entire JP Ranch planned community. Highpointe owns a total of 308 lots which have been branded as Painted Hills at JP Ranch. Painted Hills at JP Ranch is located in the City of Calimesa just to the East of the 10 Freeway and adjacent to another actively selling community known as Singleton Heights. Painted Hills was purchased in 2012 by Highpointe Communities who has revitalized the community which was dormant during the recessionary years through After extensive enhancements by Highpointe, the Painted Hills community has been actively selling the existing 44 homes. To date, 33 homes have been released with 29 sales over the last four months. Given the successful sales campaign and completion of the improvements, 65 finished lots are being offered for sale in the first phase of the newest neighborhood. It is anticipated the 308 and homes lots will be sold in three phases that will consist of 65 lots in phase one (current offering), 117 lots in phase 2 and 80 lots in phase 3. The balance of the 44 homes that have been built will close escrow over the next several months. Extensive view premiums will be recognized in the sale of the homes with the orientation of the lots to capture views of the golf course, the mountains to the north and east and the valley to the west. See the attached premium analysis. The average lot size is over 7,000 sf with a minimum width of 50 and should allow for a 40 wide home to be built on the lots. 1

4 PROJECT A very complete due diligence package has been completed and is immediately available to assist a builder in completing their due diligence on the project. The existing planned community benefits include gated entries, community recreation center with a 4,000 sf clubhouse with a game room, kitchen, TV area, pool, spa, barbecue with outdoor dining area, half-court basketball and a tot lot. The recreational center is scheduled to open in the second quarter of There is a clear path for a builder to immediately process their home plans and begin construction. There are no additional permits or contingent development issues that could negatively impact the construction of the homes in this first phase. This will provide a builder the ability to achieve home sales/ deliveries in In summary, this community offers the following benefits to a builder in purchasing the 65 finished lots: Painted Hills is a gated community located within the master plan of JP Ranch. Recorded Final Map and no contingencies or restrictions to build homes. Finished Lots. Community features very attractive amenities including a community center with clubhouse, community pool, spa, barbeque with outdoor dining, half court basketball and tot lot to open in the second quarter of Prior senior restriction has been amended and no longer a requirement. Highly successful sales of new homes in Painted Hills with 26 recent sales over the last 4 months. Other neighborhoods actively selling in the surrounding markets are continuing to experience strong sales rates and prices. Lots offer attractive views and premiums to be recognized by the builder in the home sales. 2

5 PROCESS & TIMING Offer Due Date Offer Preparation Price Terms Feasibility Period Deposits OFFERS ARE DUE ON December 18, 2013 AT NOON. Due diligence information is available to buyers prior to the offer date for the property. Seller is seeking a buyer who has a strong understanding of the property and market, and has completed substantial review of the property. Asking price has not been established. All cash at the close of escrow. Buyer will have until January 24, 2014 to complete a feasibility analysis of the property Seller to provide a draft of the Purchase and Sale Agreement for review by a potential buyer prior to acceptance of an offer. Buyer to open escrow with a refundable deposit of $100,000. Upon approval of the feasibility period the deposit shall be increased to 5% of the purchase price, which shall become non-refundable and applicable to the purchase price. Close of Escrow Close of escrow will be January 31, Seller Highpointe JPR 308, LLC 3

6 PROCESS & TIMING KEY OFFERING DATES OFFERS DUE: 12/18/2013 BUYER SELECTION: 12/20/2013 DUE DILIGENCE KICK OFF: 12/20/2013 END OF FEASIBILITY: 1/24/2014 CLOSE OF ESCROW: 1/31/2014 NOVEMBER 2013 Sun. Mon. Tues. Wed. Thurs. Fri. Sat. DECEMBER 2013 Sun. Mon. Tues. Wed. Thurs. Fri. Sat. JANUARY 2014 Sun. Mon. Tues. Wed. Thurs. Fri. Sat

7 LOCATION - HIGH AERIAL Painted JP Ranch Google Earth,

8 LOCATION - REGIONAL MAP Painted JP Ranch Google Maps,

9 LOCATION - LOCAL MAP Painted JP Ranch Google Maps,

10 LOCATION - LOW AERIAL Calimesa Country Club Existing Homes - 44 homes Residences - 2 homes Subject Offering - Phase 1-65 lots Phase lots Phase 3-80 lots Google Earth,

11 MAPS, SITE PLANS & RENDERINGS - SALES PHASING MAP * * Current Offering 9

12 MAPS, SITE PLANS & RENDERINGS - LOT PREMIUM CHART 10

13 MAPS, SITE PLANS & RENDERINGS - LOT PREMIUM MAP

14 MAPS, SITE PLANS & RENDERINGS - RENDERING RECREATION CENTER 12

15 MAPS, SITE PLANS & RENDERINGS - RECREATION CENTER FRONT AND REAR ELEVATION 13

16 DEVELOPMENT - OVERVIEW Entitlement Summary Recorded Final Map Nos , -1 and - 2. No additional approvals or agency resource permits are needed to build on the subject lots. Improvements Bonds Lots will be delivered improved with minimum remaining improvements to be completed by buyer. Estimated cost to complete budget to be provided in the due diligence materials. Total bonds to be replaced are estimated at $312,327. Number of Lots 65 single family lots CFD/Assessment Yes. Tax rate not to exceed 2%. Sizes and Dimensions Setbacks Front: 20 Rear: 15 Side: 5 Estimated Cost to Complete Min. lot size: 5,000 SF Avg.: 7,084 SF Min Pad Size: 5,000 sf Average Pad Size: 6,791 sf Min. lot depth: 100 Min. lot width: 50 Development Impact Fees: $ 56,000* Site Improvements: $ 11,000 Less CFD Proceeds: - $ 22,000 Total Cost: $ 45,000 * Includes school fees at $5.59/psf on average home size of 2,500 sf. HOA Yes. BRE has approved white report and budget for the existing homes. Dues at build-out to be $ Utilities/Infrastructure Utilities are available to the site with no reliance on other properties to develop the site. Schools District: Yucaipa - Calimesa Joint Elementary: Calimesa (API 772) Middle: Mesa View (API 766) High: Yucaipa (API 792) 14

17 DEVELOPMENT - DUE DILIGENCE MATERIALS Due Diligence materials are available via FTP website upon registration. Please contact Broker or Coordinator to request access. Materials on website include: Bond Est - Singleton 24 In. WL Segment A Bond Est - Singleton Road - Ph. 1 Segment A Bond No. PB $255,939 YVWD Water (87 lots, existing homes) JPR Bond No. PB $56,387 YVWD Sewer (87 lots, existing homes) JPR Bond No. PB $187,660 YVWD 24 In. WL Seg A. JPR Bond No. PB $928,500 Seg A JPR Bond Summary - All Agencies CFD Boundary Map - JP Ranch (1) CFD Bond Sizing - JP Ranch CFD Eligible Facilities List CFD Maintenance; Facilities Map CFD No RMA - Calimesa JPR IA #1 CFD No Funding, Construction and Acq Agreement (Executed) Notice of Special Tax Lien - CFD No Services Aerial - JP Ranch Combined Properties APN JP Ranch APN JP Ranch APN JP Ranch Budget Review Approval - RE 660 C JPR Bylaws - JP Ranch Maintenance Corp (aka JP Ranch Community Assn) City of Calimesa Drainage Acceptance TT Covenant to Preserve Wildlife Corridor - Tract

18 DEVELOPMENT - DUE DILIGENCE MATERIALS - CONTINUED Due Diligence materials are available via FTP website upon registration. Please contact Broker or Coordinator to request access. Materials on website include: Development Agreement with YVWD re Tract (Executed) Development Agreement with YVWD re Tract (Executed) Development Agreement - JP Ranch DRE Phasing Map (Final) Easement Agreement - JPR with Mastercraft (Recorded) Elevations - Rec Ctr - JPR Front and Rear Elevations - Rec Ctr - JPR Left and Right Final Map No First Amendment to CC&R s recorded HOA Dues Summary and Budget Assumptions BRE approved Maintenance Areas - HOA vs. CFD - JPR Notice of Special Tax Lien - CFD No Facilities Pad and Lot Size 65 Lot Phase Rule and Regs - JPR Maintenance Corp Sales Brochure - Painted Hills at JP Ranch Sales Phasing Map - JPR (Final) Soils Report - Tr Grading Plan Review Soils Report - Zeiser Kling dated Tentative Map No JP Ranch WF TUMF Agreement - (Fully Executed) BRE White Reports for Existing 44 Homes 16

19 DEVELOPMENT - ASSIGNED SCHOOLS 3 1 Painted JP Ranch 2 1 Calimesa Elementary API 772 Yucaipa - Calimesa Joint School District 2 Mesa View Middle API Yucaipa High API

20 MARKET - CITY OF CALIMESA The City of Calimesa is located in Riverside County, California. Calimesa was incorporated on December 1, Prior to its incorporation, the City of Calimesa existed as an unincorporated town in Riverside County where Interstate 10 continues eastward from Redlands, California. Historically, Calimesa began as a small rural town with mostly single-family homes and ranches. With completion of U.S. Route 99 (modern day I-10 freeway), businesses opened and Calimesa began to feel a separate identity from the larger neighboring town of Yucaipa. The previous decade saw several planned communities approved for development within the city, including the JP Ranch Development (approximately 807 homes), Calimesa Springs Development (approximately 270 homes), Summerwind Ranch at Oak Valley (5,000 homes + 1,000,000 square feet of commercial space), and Mesa Verde (3,800 homes approximately, and 20 acres of commercial space). Painted Hills and Singleton Heights are currently the only actively selling communities in Calimesa. 18

21 MARKET - COMPETITIVE PROJECTS Source: Real Estate Economics Ran: The following page of market data reflects the current prices for the new home selling in the submarket which reflect continued price appreciation over the last 120 days where most markets have leveled off or offered incentives. The prices on the above charts are close but slightly dated. Painted Hills will command a considerable premium in value to the communities in the Beaumont area. The primary reasons are the much stronger schools which residents value, the location is closer to the employment centers and most buyers are driving to the Calimesa area from the west on I-10. Painted Hills also commands a premium relative to the adjacent community of Singleton Heights since that project is located in the Banning/Beaumont School District where Painted Hill benefits from the Yucaipa-Calimesa School District. Singleton Heights also has a higher CFD tax rate. The most recent sale in Painted Hills was $379,990 and appraised at $385,000 demonstrating the new homes sales in this community are not having issues with appraised values for the buyer s loans. The existing values for the homes that have sold in Painted Hills are low compared to what should be expected by the buyers of the subject lots. The existing homes were designed over seven years ago with floor plans that do not meet the current demand in the market and include a 2 bedroom model. The existing homes were designed for the previous age restricted community requirement and a senior buyer which does not apply today. Painted Hills will have very limited competition for new home sales for the above reasons. There are no actively selling projects in the immediate cities to the to the west and Painted Hills is now well differentiated with higher values compared to those projects selling to the east. 19

22 MARKET - COMPETITIVE PROJECTS Living Smart - Lakeside Acacia at Sundance Kensington at Tournament Hills Singleton Heights at Calimesa Painted Hills at JP Ranch Living Smart Homes at Tournament Hills Development Builder Housing Type City Price Range Sq. Ft. Range Living Smart - Lakeside at Lakeside Acacia at Sundance Living Smart Homes at Tournament Hills Kensington at Tournament Hills Pardee Homes Detached Beaumont $275,797 - $296,825 1,764-2,256 Richmond American Homes Detached Beaumont $285,990 - $331,990 2,320-3,464 Pardee Homes Detached Beaumont $258,015 - $350,415 1,597-3,099 Richmond American Homes Detached Beaumont $267,990 - $312,990 1,720-2,705 Singleton Heights at Calimesa Mastercraft Homes Detached Calimesa $285,900 - $376,900 1,576-3,198 Painted Hills at JP Ranch Highpointe Detached Calimesa $269,990 - $379,990 2,000-2,984 20

23 MARKET - COMPETITIVE PROJECTS PRICING GRAPH 21

24 SITE PHOTOS View east towards clubhouse. View looking north over lot 57. View looking west over golf course. View of existing homes. 22

25 SITE PHOTOS View north of phase 1 and 2 towards Clubhouse. View of Clubhouse under construction. 23

26 Qualifications and Disclaimer This sales information package and contents hereof, is provided for informational purposes only. Nothing contained herein is deemed to constitute an offer of sale or to impose upon Seller, or any of their affiliates, any obligation to negotiate the sale of any parcel or property, and all offers to purchase this property must be accepted by the Seller in writing. No representation or warranty, expressed or implied, is made regarding the information set forth herein, the factual accuracy or completeness of any such information or other materials contained herein. Seller reserves the right to make changes from time to time to any of the information contained or referred to herein, to change the price and/ or terms and may withdraw the property from the market all without any obligations to notify the recipients of this sales information package. Any party which may enter into any written agreement to purchase the subject property shall make its own independent investigation regarding all aspects of the subject property and the development contemplated thereon without complete reliance upon the materials contained herein. Nothing contained herein is intended in any way to limit or mitigate the need for any independent investigation, which a prudent buyer would be required to undertake in order to determine all facts which could have any effect upon the acquisition or development of the subject property. Any prospective buyers ( Buyer ) are strongly advised to investigate the condition and suitability of all aspects of the property and all matters affecting the value or desirability of the property, including but not limited to the following items: size, lines, access and boundaries; zoning and land use; any conditions of approval, cost and fees to develop the site; utilities and services; environmental hazards; geological conditions; natural hazard zone; property damage; neighborhood, area and property conditions; common interest subdivisions and owner associations; and, specialty tax. If Buyer does not exercise these rights, Buyer is acting against the advice of WD Land. Buyer understands that although conditions are often difficult to locate and discover, all real property contains conditions that are not readily apparent and that may affect the value or desirability of the property. Buyer and Seller are aware that WD Land does not guarantee, and in no way will assume responsibility for, the condition of the property. WD Land has not and will not verify any of items listed above, unless otherwise agreed to in writing. This sales information package is subject to changes or withdrawals without notice and does not constitute a recommendation, endorsement or advice as to the value of the subject property by WD Land or the Seller. This sales information package is the absolute property of WD Land and may only be used by parties approved by WD Land. No portion of this sales information package may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of WD Land and Seller. 24

27 Disclosure and Consent DISCLOSURE AND CONSENT FOR REPRESENTATION OF MORE THAN ONE BUYER OR SELLER C.A.R. Form DA, 11/06 A real estate broker, whether a corporate, partnership or sole proprietorship, ( Broker ) may represent more than one buyer or seller provided the Broker has made a disclosure and the principals have given their consent. This multiple representation can occur through an individual licensed as a broker or through different associate licensees acting for the Broker. The associate licensees may be working out of the same or different office locations. Broker (individually or through its associate licensees) may be working with many prospective buyers at the same time. These prospective buyers may have an interest in, and make offers of, the same properties. Some of these properties may be listed with Broker and some may not. Broker will not limit or restrict any particular buyer from making an offer on any particular property whether or not Broker represents other buyers interested in the same property. Broker (individually or through its associate licensees) may have listings on many properties at the same time. As a result, Broker will attempt to find buyers for each of those listed properties. Some listed properties may appeal to the same prospective buyers. Some properties may attract more prospective buyers than others. Some of these prospective buyers may be represented by Broker and some may not. Broker will market all listed properties to all prospective buyers whether or not Broker has another or other listed properties that may appeal to the same prospective buyers. Buyer and Seller understand that Broker may represent more than one buyer or seller and even both buyer and seller on the same transaction. If Seller is represented by Broker, Seller acknowledges that Broker may represent prospective buyers of Seller s property and consents to Broker acting as dual agent for both Seller and Buyer in that transaction. If Buyer is represented by Broker, Buyer acknowledges that Broker may represent sellers of property that Buyer is interested in acquiring and consents to Broker acting as a dual agent for both Buyer and Seller with regard to that property. In the event of dual agency, Seller and Buyer agree that: (a) Broker, without prior written consent of the Buyer, will not disclose to Seller that the Buyer is willing to pay a price greater than the offer price; (b) Broker, without prior written consent of the Seller, will not disclose to the Buyer that Seller is willing to sell property at a price less than the listing price; and (c) other than as set forth in (a) and (b) above, a Dual Agent is obligated to disclose known facts materially affecting the value or desirability of the property to both parties. NON CONFIDENTIALITY OF OFFERS: Buyer is advised that Seller or Listing Agent may disclose the existence, terms, or conditions of Buyer s offer unless all parties and their agent have signed a written confidentiality agreement. Whether any such information is actually disclosed depends on factors, such as current market conditions, the prevailing practice in the real estate community, the Listing Agent s marketing strategy and the instructions of the Seller. Seller and/or Buyer acknowledges reading and understanding this Disclosure and Consent for Representation of More than One Buyer or Seller and agree to the dual agency possibility disclosed. 25