Vacant Building Gets a New Tenant

Just last month Macy’s announced it will open a store in Palmdale, CA, beginning in the fall of 2010. The single story location is 110,000-square-feet. Now Macy’s will be located in the Antelope Valley Mall at the former Gottschalk’s location, and this will be Macy’s first presence in the Antelope Valley.
Macy’s press release indicated it will offer a full range of apparel and accessories for women, men and children, as well as housewares, home textiles and luggage, and the store will employ approximately 130 associates.
The previous department store chain Gottschalks Inc had stores in California, Washington, Alaska, Oregon, Nevada and Idaho, but put itself up for sale and then filed to reorganize in a Chapter 11 bankruptcy in January of 2009. The location has been vacant for over a year now, and caused a blight in the mall.
The other anchor stores are JC Penny’s, Sears, and Dillard’s with smaller national chains like Pier 1 Imports, Men’s Wearhouse, and 24-Hour Fitness.
The Mall opened in 1990 and it actually sits above a wash of snow runoff from the neighboring San Gabriel Mountains. Land in this area sold for under a thousand an acre because of the wash, while unencumbered land sold for much much more. The city devised a wash channel via pipelines which now runs beneath today’s Mall. Prior land speculators saw the opportunity back in the 70’s and 80’s as Macy’s has found a new location for their expansion.

160+ acres at 50th Street West & Avenue H, The Development That Didn't

This large swath of land in Los Angeles County has had a proposed amendment to the General Plan land use from rural residential agricultural land (one dwelling per 2.5 acres) to a proposal for R-7000 urban residential (one dwelling unit per a minimum net area of 7,000 square feet). It would entail a subdivision for 655 single family residential lots in the R-7,000 Zone. The Planning Commission undertook a resolution to adopt the recommendation to deny the General Plan Amendment of zone change. The Planning Commission sent a letter in January requesting a response to the property owner’s engineering department regarding their project. If there was no response then the commission would recommend denial of the project, which had originally begun in October 2004. As there wasn’t an environmental review of the project, hence the property owner’s inaction was the indication that they were giving up their plans. To date no environmental progress has been made, and it cannot move forward without the Environmental Impact Report (EIR). As the project requires the application payment and a redesign of the plans, thus the inaction by the property owner forced the planning commission to deny the zone change.

Many investors may have purchased land in this area in anticipation of the zone change and potential housing track of hundreds of homes. The real estate foreclose rate in Lancaster and Palmdale has been significant, and most of those foreclosed homes have been repurchased by investors for a fraction of their prior value. The outlook for new housing in the valley has curtailed plans by this developer and others as there has been a few mapper’s who have dissolved their plans to develop a number of parcels on the east and west side of Lancaster and Palmdale. A loss for some can be an opportunity for another.

As land prices have dropped then low priced pre-developed land opportunities become available. The most recent low prices in land came after the Internet bubble in 2000 to 2004. Prices increased dramatically after that to the highs of 2006 and 2007. Buying at the end of the recession and selling at the top of the next wave has proved to be prudent for a number of investors. Unfortunately, many investors buy at market highs and sell in desperation when the market is at its lows. This current time frame is a much better period to look into pre-developed land investment. Pre-developed land has the greatest increase in potential value, since undeveloped land is much lower in price. Once development occurs in the area then Commercial and Housing companies need the land based on its proximity to other development. These developers have the funds to buy at $100,000 or more per acre for the right type of property. Today an investor can pay less then half that price. If you are looking for an opportunity for your IRA, or 401k then contact us and we can locate prime opportunity low priced land options.

Antelope Valley Weed Abatement Notice and the Responsibility to the Vacant Land Investor

Los Angeles County via the Dept. of Agricultural Commissioner Weights and Measures has increased its Annual Weed Abatement Notices. There have been a number of properties in Lancaster and Palmdale California which have gotten this notice for the first time. The Abatement Notice levied to properties when an abundant amount of weeds, brush, neglected vegetation or trash has accumulated on properties. This includes homes and vacant lots. In addition, properties were sited if these weeds are located near a house or structure as they create potential fire hazards to all homes. Specifically in Antelope Valley there is a special notice. If your property has a large amount of tumbleweeds, which can roll onto roads, damage agriculture crops or build up near homes and fences then your property can be sited. If you are sited then the responsibility of the property owner is to clear the dry weeds or brush within one hundred to two hundred feet from a home or structure, and ten feet from a road.

Some owners are getting this notice and they do not have an abundant amount of weeds on the property. It is because of the special information regarding tumbleweeds. Because of environmental factors, inspections and abatement of the current season’s growth of tumbleweeds on parcels in the Antelope Valley will not begin until Oct of 2010. We surmise the Department of Agriculture will wait until the end of the summer season to see if tumbleweeds have rolled onto your property.

There have been hearings in late February for property owners who wish to present objections to their notice. After April 1, 2010 the County will be inspecting properties for excessive weeds and brush. If property owners have not inspected their parcels and cleared bush per the notice then the county will begin enforcement of the notice and clear excessive weeds, and the cost of the county abatement will be assessed to the property tax bill. If the property owner has not cleared the property themselves by March 15, 2010 then the county abatement team is on its way. The county has already assessed an inspection fee of $45 even if the property owner cleared the brush themselves. If the county hires independent firms to enforce the notice then the abatement fee will be much more expensive then if the property owner were to maintain their own parcel. In addition, if you received the notice and sold the property then the sited property owner will be liable for the assessed abatement fees, and not the new owner.

These abatement notices may increase over the years as Antelope Valley grows, so it is important to view your property periodically and maintain any debris and vegetation. The debris issue is a separate issue as people have used remote parts of the valley as a private dump. The land investor has less issues then the home investor but still must invest with responsibility.

Los Angeles County Attracts Another Renewable Energy Project As Antelope Valley and Agricultural Land Benefit with the Development

Another Solar company is taking up roots in Antelope Valley. Tuusso Energy headquartered in Seattle Washington with a medium size project, which can power up to 15 thousand homes and connects directly to existing transmission lines. The proposed location is on LA County land and it is a rectangle shaped area at 100th Street West running north to south from Ave H to approximately Ave I-8. This area is just south of the community of Antelope Acres, and it is just north of Edison power lines that cris-cross the western valley. Their technology uses photovoltaic panels which look very similar to rooftop panels. The benefits with photovoltaic’s are that they use a limited amount of water and they are low profile as they stand just a few feet above the ground.

Tuusso’s project proposal has been underway for a year and they are currently conducting environmental studies with Los Angeles County and local government agencies. As part of the environmental impact, they have targeted dormant agricultural land away from any current major development. It is not known if this land has been previously disturbed land, or simply vacant agricultural land. The environmental impact may be the biggest hurdle to overcome as the State and local governments are favorable to renewable energy projects, but environmentalists prefer limited change. The production is expected to begin later this year and run through early 2011. Lancaster Ca. has proposed a number of zoning changes within the city limits to entice alternative energy projects within its boundaries, so many more projects are sure to arise.

This is the fourth and separately planned renewable energy project on LA County land in the Antelope Valley. It is sure to change the landscape dramatically, but change for the valley will be good for the economy and community. The agricultural land targeted is a big bonanza for the long-term land banker. This area was vacant land for decades caught between power lines, and a pocket of custom homes. It further highlights that agricultural zoned pre-developed land provides a great investment opportunity. These Solar Companies are capturing lower real estate prices during this downturn, and it is a good time for new investors to take advantage of this land banking opportunity also.

The City of Lancaster California is Proposing Land Development Changes to Establish Three Separate Mixed Use Zones

The City of Lancaster, Ca. Planning Department is forwarding new recommendations in conjunction with their 2030 General Plan. The focal point of their recent meeting is to draft new zoning changes for the city, and to incorporate several mixed use proposals. The City of Lancaster, Ca. currently doesn’t have mixed use development, while cohabitating residential and commercial zoning has been implemented in numerous cities across America. A typical mixed use would be street level retail shops on main roads with single family or multiple family dwellings above. Most of Lancaster Ca. has been single family dwellings in proximity to commercial buildings. It has been a typical small town growing without the future planning of the needs of the community. It’s a sort of plan as you grow, instead of planning growth. The mixed use proposal will make Lancaster look more like Orange County’s growth and development, which has been the new normal.

The three proposed mixed use zonings will be Mixed Use-Neighborhood (MU-N), Mixed Use-Commercial (MU-C), and Mixed Use-Employment (MU-E). The mixed use neighborhood zone would incorporate residential housing in close proximity to commercial, offices and services. It would include multi-family housing, such as apartments and condominiums, small-lot single-family subdivisions, and smaller commercial and office space. The streets patterns would allow better traffic flow, and it would offer pedestrian connections, community space with trails and neighborhood parks.

The mixed use commercial would integrate residential and commercial space together. The commercial space would most likely be along major artery streets, with modern landscaping. It will also have multi-storied buildings which must contribute to the areas surroundings. The third zoning change proposal is mixed use employment. This zone is intended to provide an area for non-retail employment in close proximity to residential housing. It would likely include multi-family residential dwellings with office professional, business parks, and some light industrial uses. This zone is not intended for heavier industrial uses.

The two major target areas for this new zoning will be south of Ave H from 20th to 40th Street West, and also along Sierra Hwy and Division south of Ave I. As the city grows so does the opportunity for land investors. We think this is a very positive step toward the future for land buyers in Antelope Valley. Most of these areas are currently vacant land parcels, but it will be a future location for a developer. Many large chain stores wish to locate their business near residential neighborhoods as it has been part of their business model. Land prices today are far less then they were just three years ago, so this is a good time to look at vacant land deals in Antelope Valley.

Los Angeles County Lands Best Renewable Sustainable Project with a Patented Solar Complex built on Pre-Developed Industrial Land

Power Engineering magazine announced this past December the selection of E-Solar’s Sierra SunTower facility as the winner of "Best Renewable and Sustainable Project" at the 2009 Projects of the Year Awards. This is an annual award where Power Engineering magazine recognizes the world's best projects in the four major categories, gas-fired, coal-fired, nuclear and renewable. The new solar power facility is the first of its kind in California.

E-Solar unveiled Sierra SunTower, which is their 5 MW commercial-scale solar power plant, in August 2009. It is located just 60 miles north of downtown Los Angeles in Lancaster California. The solar complex runs along Avenue G in the northern part of the city. This renewable energy facility captures the suns energy to produce super-heated steam with an average operating temperature of 800°F at a pressure of 900 psi, which it delivers through a turbine generator to Southern California Edison. Their patented technology uses Pre-fabricated modular units that are scalable to fit smaller or larger parcels of land to suit their power client’s requirements. This project was developed on a small parcel of land close to existing transmission lines, and it is the first of several planned in Antelope Valley, California.

This is one part of the City of Lancaster’s 2030 General Plan to create fertile ground for renewable energy projects. The planning department has approved of thousands of additional acres of heavy and light industrial land as a target area for these types of projects. They plan to further expand this area by amending the zoning to absorb rural residential and agricultural zoned land for heavy industrial use. This would be the largest expansion of Los Angeles County land into city zoning in decades. It is also one of the best means for a land investor to get a rapid return on their investment.

It is paramount for land investors and land bankers to buy land near developing areas such as Lancaster and Palmdale California. The closer you are to development the more likely development will reach your parcel. In many cases the initial investment can be more, but the return on investment could be shorter term. We have spoken to vacant land owners who purchased remote desert land far from development and they are unfortunately still holding decades after their initial investment. Don’t let it happen to you, as the real estate slogan goes location, location, location also applies to pre-developed land.

City Of Lancaster Proposing New Zoning Changes As Part of the 2030 General Plan

The City of Lancaster has proposed zoning changes throughout the city limits. Some target areas will be the area south of Avenue G to H which has been proposed to be heavy industrial and it will run from Hwy 14 east to Division and then it will run south of H along Sierra Hwy to Ave I. There will also be almost a square mile of light industrial from Hwy 14 west to 20th West from H to I. They also target great deal of light and heavy industrial from Hwy 14 east to Challenger within avenues L to M. The industrial zoning changes are designed for Solar and Wind Energy firms to entice them to locate within the city of Lancaster. There will also be more R-7000 and R-10,000 residential from Ave I south and Hwy 14 to 70th Street West. A good amount of this area has been RR 2.5 only allowing 1 home per 2 acres, but with R-7000 zoning developers can build track homes of one house per 7000 square feet. In addition, the land surrounding the County Jail and Hospital at West Ave I and J will be virtually surrounded by light industrial zoning and commercial at 50th W at J.

This new zoning draft review took place Feb. 16th at the Lancaster Planning Commission meeting. It is part of the City of Lancaster 2030 General Plan. Another part of the proposal is for mixed used (MU) zoning adopted as part of the overall plan. A large portion of this proposed mixed use will be from 20th to 35th West and from H to I. The public will be allowed to review the draft proposal and the earliest the mixed use zoning can be adopted would be April of this year.
These proposed changes can really change the value of land especially land that is changed from RR 2.5 to R-7000 or R-10,000.
The City of Lancaster seems to be progressive and aggressively toward business growth, which can produce a vibrant economy for the cities future.
We will keep you updated as the plans progress, so stay tuned to our reports.