Although the largest, the sale of Kiley Ranch to Rising Tides is only one of many failed developments that have been changing hands lately. Some are REOs sold off by the banks after the Trustee’s Sale process. A lot are the equivalent of short sales, so they never show up as TDs. And in the “gentlemanly” development world, there are a many DILs (Deed in Lieu of Foreclosure). The groundwork for the area’s next round of new home development is being put in place.
Lennar has build out the pieces of Grand Summit and Canyon Pines they bought, and have now bought the rest of the Canyon Pines. They have also swooped up a big piece of D’Anrdrea. You expect the developers to be opportunistic and pick up developments that fit their niche, but a new breed has shown up at the dance again- the Land Speculators.
Bluth Trust (aka Charles P “Chuck” Bluth, former owner of the Cal Neva) just purchased 52 lots from the receiver for Nevada Security Bank for $850,000 or $16,346 average. These are some of the most prime custom home lots in Somersett on Eagle Chase, Gypsy Hill and Twin Eagles, and Somersett Development had been holding on to them until they were foreclosed on. They all just listed with prices ranging from $25,000 to $125,000, fully finished and ready to build, with a total listing price of $4,000,000. Nice margin if it works out! Bluth has another 15 Somersett lots in portfolio, and just listed 30 or so Arrowcreek lots, and it looks like they also have a Montreux cluster. Bluth has also be acting as BFH LLC and picking up properties at Trustee’s sales. (Bluth Trust also acts as a hard money lender – enter “Bluth” in the Grantee field on the Recorder’s site! Middlefork = Rancharrah, and some other gems)
Reynen & Bardis’ Stagecoach Collection Catron Ranch project was purchased at a Trustee’s Sale by Reno Golden Hills Investors (aka Village Properties out of SF, some lots transferred to Catron Lots LLC) for $2,000,000 in June 2010. Judging from the APNs listed, the sale included 154 finished lots, 3 model homes, and some rough graded unfinished lots. Unfinished lots are worth, well, dirt. The Models will sell for about $1,000,000 total. $1,000,000 / 154 lots = $6500 per lot. (If I’m wrong about the models, the per lot cost would be around $13,000) Catron Lots LLC has been selling off the lots in dribs and drabs, most notably to BR Catron LLC who has built a few houses, financed by Bluth Trust. BR Catron purchased 4 more lots for $208,868 ($52,217 per lot) in November 2011 including 10190 Gold Mine, listed as a build to suit for $319,990. Who is BR Catrone and their alter ego Artisan Communities? None other than Reynen & Bardis rising from the ashes and flying in stealth mode.
The margins on speculating in finished lots look spectacular, if they sell at these prices. Is Bluth making a marketing error flooding the market with over 100 vacant properties in just the last week? Time will tell.