Saturday, June 17, 2017
For the third consecutive straight month with the May report it shows signs a future shortage of houses. A recent report from the Commerce Department indicated housing starts which had a 2.7 monthly decline in April and a 7.7 drop in March show a 5.5% drop in May. Although home construction is up 3.2% year to date. News reports indicate optimism in sales from home builders, yet the overall number of homes for sale has shown a steady decline over the last two years. Another major real estate indicator is building permits. That number has drop precipitously 5% to just over 1 million nationwide. We don’t have the local numbers in Los Angeles County, but found that the Wells Fargo builder sentiment index is 67. This is a positive number as any reading above 50 is a positive number and that number has been well above 50 for the last nine months.
Monday, June 12, 2017
A lot of property in Lancaster and Palmdale is advertised as build your dream home. It is easier said than done. First you need to budget for it. A custom home can cost from 150k to $450k with the average being $300k. But first you must buy the land, and the land location is tantamount. Many buyers buy land without power, water, or city services. Once you get the permits to build on such a property then you will need propane tanks for power, drill a well for water and use septic for sewage. All doable tasks. But getting the water 1500 feet below the surface is the first real trick. This is typical in Lancaster and LA County. A popular option is a modular home or prefabricated home. They almost look like a normal home, but you will have to disclose that the house is a modular home, and the selling price may be lower to reflect that. If you choose to build it yourself then you may need estimates for the cost to do so in your area. Plans and designs must be submitted to the city or county and then permits and inspections follow once initially approved. A builder will likely have several inspections along the way. Then you need a construction loan, or a construct to perm loan. A construct to perm loan can involve the land purchase as well. There are numerous factors that affect the cost such as square footage, number of stories, roof type, finishing’s, and issues like if power, water and sewage are available. The propane tank is reasonable if you go the lease option. It may cost only a few hundred to install, and the cost of a simple slab. A septic tank can run $1500 to $4000. A well estimate is $5k to $40k, but on average $25 a foot. The average in Lancaster and Palmdale area is $20-$25k for a well . In the end it may takes years to complete.
Thursday, May 11, 2017
Apple Valley Industrial Growth Low land costs in business friendly city has created fertile ground for industrial developers. Part of this growth is the logistics airport that brings in commerce. Walmart is developing a 370k square foot structure near the SCLA airport and it is partly leased already Adelanto lenient to marijuana Adelanto’s population is around 33,000. It is 50 percent Latino and 30 percent African-American, and roughly 40 percent of the population lives below the poverty line The city late last year officially expanded its medical marijuana cultivation and manufacturing zone, while the mayor opposed it. Since measure R passed the zone where medical cannabis cultivation, manufacturing, distribution, transportation and testing can occur was increased by 160 acres to zones marked “light industrial.” They did this by approving the second reading of an ordinance passed earlier. The Council has increased the overall zone to up to 500 acres. This new extension is near the Air Expressway and Yucca Rd. The voter approved 5 percent excise tax, Measure R, to commercial recreational activities as well, in wake of the passage of California’s Proposition 64, which legalized recreational pot. The mayor is very opposed to it. He is quoted in the Victor Valley Press “I can assure you right now that every vote that comes out of my mouth on recreational, to grow in our city (commercially), will be a nay answer,” Kerr said.
Monday, May 1, 2017
Tentative Tract Map (TTM) 62333 Time Extension (TE) No. 1; is a request for a three-year time extension to develop approximately 7 acres into 22 single-family residential lots and one detention basin lot between Avenue R and Avenue R-4, Tentative Parcel Map (TPM) 74425 and Conditional Use Permit (CUP) 16-010; applications by HRES Palmdale, LLC, to subdivide 9.1 acres into two commercial lots and to construct a convenience store with an accessory car wash and fuel canopy consisting of two buildings to be located at the northwest corner of Palmdale Boulevard and 40th Street East. Tentative Tract Map (TTM) 60732 Time Extension (TE) No. 2; an application by The Epic Companies, requesting a second and final three-year discretionary time extension to subdivide 9.8 acres into 28 single-family residential lots located east of 20th Street West and 660 feet south of Avenue P-8. The development of a 56-duplex condominium project has been proposed for APN 3009-001-900. The 9.9 acre project area is located at the southeast corner of Taintor Road and Division Street in the City of Palmdale. General Plan Amendment (GPA) 15-002, Zone Change (ZC) 15-002, Tentative Tract Map (TTM) 73740, and Site Plan review (SPR) 15-007 are applications for the following items: a) General Plan Amendment 15-002 a request to amend the General Plan Land Use designation on 9.9 acres from SFR-3 (Single Family Residential, 3.1-6 dwelling units per acre) to MR (Medium Residential, 6.1-10 dwelling units per acre); b) Zone Change 15-002 a request to change the Zoning designation on 9.9 acres from R-1-7,000 (Single Family Residential, 7,000 square foot minimum lot size) to R-2 (Medium Residential); c) Tentative Tract Map 73740 a request for a one lot 56 duplex condominium unit subdivision on 9.9 acres; d) Site Plan Review (SPR) 15- 007 a request for multiple family residential use; and e) Density Bonus Agreement The last one above is a zoning change request form R-7000 zoning into Medium Residential Zoning. Building is taking place in Palmdale. You just have to know where to look.
Thursday, April 13, 2017
Kinkisharyo's is a light rail car assembly facility at Plant 42. It recently celebrated in its production of its 78th rail car for the Los Angeles Metro Authority. This completes their first contract with LA Metro and moves them onto a new beginning. All the manufacturing is done at the Plant 42 plant in Palmdale with about four hundred workers. It is part of an almost billion dollar contract to deliver over 200 rail cars. The recent completion triggers a new phase and new agreement with LA Metro to produce more cars, and to expand the plant. If you recall several years ago there was a big legal disagreement. The unions accused Kinkisharyo of violating environmental acts. This forced the company to consider a move to Phoenix Arizona where other manufacturing is done. The disagreement would have killed jobs in Palmdale, which the city desperately needed. The company felt the union move was ruse by the union to force the company to use its workers. The company decided to drop their factory expansion, but they later won an agreement to use an existing building once operated to make the B-1B bomber. A swords to plowshares change. Additionally the company agreed to not fight unionization. The Palmdale workers are now represented by the International Brotherhood of Electrical workers. This success provides security and jobs in the valley, and it is not just as airplane bomber producing area, but an environmentally conscious area as it is combined with the BYD electric bus manufacturing in Lancaster. This keeps workers in the area, which busts the local economy and areas growth.
Saturday, April 1, 2017
California Marijuana Law may save Insolvent Cities. Lancaster Approves Marijuana Cultivation in City Limits
The city of Lancaster has given the final approval March 2017 in allowing commercial cultivation of marijuana for medical purposes, but it banned commercial growing or selling it for recreational use. They approved five as the limit on businesses allowed to grow within the city limits. This will be allowed on Lancaster industrial zoned land according to reports. Places like Desert Hot Springs in the Coachella Valley has been inundated by marijuana growers and developers. Buyers are buying land without utilities or even roads. Some brokers are getting calls from all over the world. The Mayor is all for it. He wants parks, roads, sidewalks and he is looking for the tax revenue to do it. The medium household income is under $35k, and the city declared a financial emergency a few years ago. They have since pushed for dispensaries and cultivation. It seems the city planner will be open to new farmers. Growers in California will be able to apply for state licenses by 2018. The catch is these growers will need to get a local license before the state offers the permit. Will this frenzy also be a growth opportunity to farm land in Antelope Valley? The valley has a long history of farming, so it would be a likely target area and it is closer to customers in Los Angeles than Desert Springs. The city of Lancaster says no currently to recreational use farming, but not sure what LA County approves. There are other issues as some utility firms indicate that the power needs may not be enough in some rural areas, and water is a big issue in southern California. Some of these issues may require an infrastructure study. Perhaps larger operations could use brown water as the water source. There has been a push to use the expansive Antelope Valley as a brown water aquifer. Let nature clean the water and maybe water the buds along the way. Other cities like Cathedral City, and Adelanto have recently accepted applications for growers. The competition for land and permits may spur growth, but first you have to get that permit and then talk to land sellers. Adelanto was also almost insolvent. This seems to be the push for some California cities in desperate need for revenue then they will be lenient with permits. The penalties for cultivating marijuana or operating a grow house illegally (a property used primarily for the cultivation of marijuana) can vary depending on the specific circumstances of the case. Usually the penalties can include heavy fines and incarceration in prison for up to 3 years.
Friday, March 3, 2017
We have been posting news about Lancaster and Palmdale developments since 2007. Not only do we try to inform our readers about developments in the Antelope Valley we also promote some property with investors we work with. Here are a couple of properties we are happy to submit for prospective investors. These parcels are priced at the low end of the market at recently sold price ranges. This property is located at 40th Street East at H-8. It is zoned RR-1 allowing 2 homes on this 2.5 acre parcel. Asking $50,000 which is commensurate with recent sales. Contact firstname.lastname@example.org for more information. Images are available The second property is located at 43rd street East at Ave H. It is just under 2 acres fronting on H which is paved with power. The city limits of Lancaster ends at 40th street. There is also a home across the road. Ideal parcel to buy and hold. They are asking only $15,000 which again is similar to recent sales in this area. Contact email@example.com for more details. Property images are available If you know someone who is interested in promoting on our blog please let us know.