Several Multiple Housing Tract Maps recently approved and extended in Lancaster

A recent planning commission meeting extended tentative tract map approval for a couple of investment firms. 64 acres at 80th West and Ave L was approved for a 60 day extension. The subdivion is for 204 homes zoned R-10,000. There was another 42 acre plot approved for a 60 day extension 40th Street West at H-8. This is approving 156 homes of R-7000 zoning. Another firm was approved for 66 home on R-10,000 zoning at 35th Street West at K-4. The same firm is getting another 39 home approved near this parcel. Another 40 acre parcel at 15th East at H-8 was approved for a 60 day extension on 151 homes also zoned R-7000. These extensions are currently only approving the tract map, so building doesn’t appear to be around the corner, but it looks positive that these firms are moving their plans forward for future housing development. It these all move forward then that is at least 550 new homes on the horizon. This will certainly put a dent in housing inventory. Stay tuned for future updates on these new developments.

SpaceX has Awarded MIT Team The design Contest for the Hyperloop

The Hyperloop is progressing. In this case it is Elon Musk's SpaceX financed Loop.The MIT grad students won out against a 100 other teams. This design will go into a proto-type in Hawthorne California. The proposed system would use pods traveling in tubes in a vacuum at 750 MPH from Houston to Dallas, or San Francisco to LA. The design is an elevated design above the ground and MIT design has been reported as using magnets. There are now several plans in place and all designed in the US. We will see which one or many work out. This certainly competes with a high speed rail in California which will cost billions. We are still unsure if the Hyperloop is really feasible as it will take a person at 750MPH. Some design include carrying vehicles. Hyperloop people say a person will not realize they are going 750 MPH, but how can it turn? Critics say a person can handle a change even gradual turns or rising and falling without getting sick. If that is the case then a Hyperloop would have to be at the same level from San Francisco to LA. It just seems impossible to be at say 50 feet up all the way since California is not flat. We will see where this goes.

The Hyperloop is coming to Las Vegas

Elon Musk’s radical transport system will be tested in Nevada in 2016. It has been recently reported that the Hyperloop is coming to Nevada for testing. Hyperloop Technologies and the Nevada Governor’s office selected 50 acres in North Las Vegas at Apex Industrial park to test out the prototype system. This proposed system will reach speeds to 700 plus MPH or San Francisco to LA in 30 minutes. This system will be tested by in Las Vegas. A rival test will be done by a separate company Hyperloop Transportation Technology north of Los Angeles. The Hyperloop plan will be elevated above ground and it will carry tubes powered mainly by solar energy. There may be some hic-ups in the engineering, but Elon Muck Hyperloop Technologies and the rival LA group Hyperloop Transportation Technology are both pushing this technology forward. There always seems to be a reference of the SF to LA, but this could work Dallas to Houston, or maybe NY to Washington. It is a rival to the California High Speed Rail and the Xpress West High Speed train from Los Angeles (Victorville to Las Vegas). The Cal High Speed Rail has broken ground in the Central Valley, but there are not enough funds currently to move it along to Palmdale. The Hyperloop has estimated that the cost per passenger from SF to LA maybe under $30, while the high speed rail will need $billions to complete will cost more per passenger. Let’s let this play out and see whose technology and if the State and Federal Government will approve a Hyperloop since they have already spent money and have voter approval on the Rail line.

New Positive Jobs News on the Antelope Valley Horizon

Northrop Grumman was awarded the “B3” new stealth bomber contract, but it is under appeal by Lockheed and Boeing. Lockheed also has a presence in Palmdale, if there is any change maybe Lockheed will get some input. The entire bidding process takes time, so it looks like Northrup will get the bid unless there was any illegal backdoor deals. But there is no evidence of that. Additionally, BYD is building electric buses and expanding their footprint in other cities and States. Also Kinkishiryo which is also in Palmdale has been building some rail cars for the Metro Rapid Transit system. They were going to pull out of Palmdale at one point, but tempers and accusations cooled. There are several solar power facilities taking place on the west side. These projects are being built and jobs are operating. Once the conduction faze is complete then many of those construction jobs will be gone. But it seems as soon as a project is completed then another one gets started. The sun keeps shining on solar in Lancaster and LA County land. More engineering jobs like these especially the new stealth bomber and the bus and train construction and manufacturing creates a need for housing in ownership and rentals. This all increases the value of land over time. This is all positive news for real estate and land investment.

Chinese Buyers are Buying Real Estate Across American and Beyond

The New York Times recently reported that Chinese buyers have been buying luxury high end apartments in London wealthier neighborhoods in Vancouver Canada and luxury condos in New York City and larger home in the Silicon Valley. These buyers are buying higher end properties in major cities which doesn’t affect the overall real estate market, but it does in more dense populated areas like New York and San Francisco. This pushes residences in these cities to pay more for living space and pushes up rent. These Chinese purchases make up a small amount of the overall sales in the United States. This is a disproportion of their money in high end properties according to the NT Times. They have bought one in every fourteen homes in the $1million plus range in New York. They are also buying land in the Antelope Valley. There are real estate agencies and marketing firms promoting fee simple properties in the Antelope Valley. Land has no maintenance needs so the buyer can sit and wait and just pay the property taxes. Larger condo’s need maintenance, HOA fees and security. The Chinese government doesn’t allow long term ownership of property in China. It is usually for a period of years, so property can’t be passed on to children. Additionally, in China land has to be development. This is partly why there are ghost cities in China, since the land was bought but requires development in a period of time in order to retain the property. This is why land within the path of growth that can be pass onto offspring is so enticing. The Chinese stock market and government cannot be trusted to provide security in an investment. This new overseas investment is helping property values in Lancaster and Palmdale especially closer in property to development.

Los Angeles County Approved Plan Centennial Plan but Little Development

Tejon Ranch Co.which is traded on the New York Stock Exchanged (NYSE:TRC) reported last year that the Centennial Development plan was approved by the Los Angeles County Board of Supervisors, by a 4-0 vote. The meeting last year was a full house in Lancaster with standing room only and at least 50 people expressing their opinions. Almost immediately after the discourse the Board of Supervisors approved the plan unanimously. The centennial plan will initially encompass 23,000 homes over time with their own fire department, medical services and environmentally friendly community. On paper it looks great and will look to be a real nice place to live as it will include hiking trails and involve a great view of the mountains just east of the grapevine. This Tejon Ranch Co.'s master planned community called Centennial is included in the Antelope Valley Area Plan as part of the Economic Opportunity Area where future development would be directed for Los Angeles County. If you have been to LA County it looks like most of LA was poorly planned to begin with. This plan appears to have promise, but no development or digging has taken place just yet. Tejon Ranch Co. has three plans according to their website. One being Centennial, another is called Grapevine and the third is Tejon Mountain Development. Grapevine will be located at the base of the foothills in the San Joaquin Valley portion of the ranch near the Tejon Ranch Commerce Center. This is near the huge IKEA warehouse. They intend to have a large community as part of the overall plan. The Tejon Mountain Village will be a community of homes largely undisturbed by mankind and it looks to be a small set up of nice homes overlooking the mountain range with access to Hwy 5 not far away, or just an hour from LA central. The website says Tejon Mountain Village will be a new conservation based retreat designed to live in harmony with nature, and continue the legacy of this storied place for future generations. Well there has been a lot of talk and discourse, but if it is all approved then lets get this nice new communities started. This can only improve the western part of Antelope Valley.

Northrop Grumman’s New Bomber Gets Budget Approval, Good News for Palmdale

The Air Force said indicated it chose Northrop Grumman Corp., maker of the B-2 stealth bomber which was previously built in Palmdale Ca. Now Northrop Grumman will to build the next-generation bomber, which is highly classified. The cost is projected to be $80 billion to replace the aging bomber fleet. It may also be able to fly without a pilot aboard. It is a bid announcement for the Pentagon as they are planning to modernize their nuclear force, submarines, and long range bombers which is dubbed the B-3. The total budget is $348 billion over 10 years and other says it will be $1 Trillion in 30 years. Previously, Northrop Grumman said it could create 1,500 new jobs in Palmdale under the bomber contract. These new jobs should move the needle in the Palmdale housing market as new high tech engineers will be needed for this project as well as hundreds of admin support staff.