After exhibiting consistently positive confidence levels it seems as though Southern California home builders are finally ready to get moving on a few projects that were put on hold as a result of the national recession. One such project is the development of a high-end community, slated to go in on a tract of undeveloped land next to Porter Ranch.
Recently, Foremost Communities, a Newport Beach real estate investment firm, acquired the 230 acres of land adjacent to Porter Ranch, the site of a long-stalled housing development that ran into a few too many bumps in the road during the recession. Next year, the firm hopes to begin construction on a project that will construct approximately 314 luxury homes and a network of horse trails throughout the property, which will be called Deerlake Ranch.
As an answer to luxury home buyers desires, the homes will be perched along the hillside north of the 118 Freeway, offering sprawling views all the way to the Santa Monica Mountains. Developers wanted to tie in the strong equestrian aspect of the surrounding communities. As a result, 68 of the homes will site on half-acre equestrian lots with ample access to the various horse trails being planned for the area. The homes will range from 3,000 square feet to 4,000 square feet and are estimated to cost between $1.2 million and $1.7 million.
The Los Angeles development is supposed to get underway late next year, starting with the grading of the hills on which the homes will be situated. While the land is being readied for construction, Foremost will begin the process of vetting builders in spring 2017. Homes in the Deerlake Ranch development should be available to buyers starting later that year.
Los Angeles Builders Seeking More Land to Develop
The Deerlake Ranch development represents an increasingly rare treasure for Southern California home developers: a large tract of land available for development. After building booms earlier in the decade, undeveloped tracts of land are becoming increasingly difficult to come by.
“There is just not much opportunity for land development,” said Terry Ruckle of brokerage Land Advisors Organization, which represented both the buyer and seller in the deal, to the Los Angeles Times. “This is one of those last pieces.”
As a result of the great desire for land in Southern California, such purchases are going for astronomical rates forcing builders to construct homes for more affluent buyers. Although the price for Foremost’s land purchase was not disclosed, the soon-to-be-developed property has been valued at $500 million.
Following the recession and subsequent leaner years for many Southern California home owners, builders have only been able to work on projects that yield higher revenue for them. Thus the influx of high-end communities such as Deerlake Ranch have been highly coveted while other projects such as Antelope Valley and Inland Empire have been slow-going on the development side.
Now is a wonderful time to own a luxury home in Southern California. If you are interested in learning about high-end homes in Los Angeles, please contact our team today.