WD Land | 94 Discovery | Irvine, CA 92618 | 949.789.4555 | BRE Lic No.: 01211887 EXCLUSIVE OFFERING MEMORANDUM IRON HORSE HILLS │ 186 LOTS Fully Entitled View Oriented Community Located in the Reche Canyon Area of Colton, CA • Barton Road • Loma Linda Medical Center • Cooley Plaza • Centerpointe Center LOMA LINDA • Reche Canyon Road • Barton Road IRON HORSE HILLS
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WD Land | 94 Discovery | Irvine, CA 92618 | 949.789.4555 | BRE Lic No.: 01211887
EXCLUSIVE OFFERING MEMORANDUM
IRON HORSE HILLS │ 186 LOTSFully Entitled View Oriented Community Located in the Reche Canyon Area of Colton, CA
•
Barton Road
•
Loma Linda Medical Center
•
Cooley Plaza
•
Centerpointe Center
LOMA LINDA•
Reche Canyon Road
•
Barton Road
IRON HORSE HILLS
IRON HORSE HILLS | COLTON , CA 2
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
LOCATION MAPS
Low Aerial 6
Regional Map 7
Local Map 8
Amenities Map 9
MAPS, SITE PLANS AND RENDERINGS
Lot Summary Table 10
Building Footprint 11
Site Plan 12
Neighborhood Park 13
DEVELOPMENT
Development Overview 14
Due Diligence Materials 15
Assigned School Exhibit 16
MARKET
Demographics Overview 17
Concord Study 18
OFFERING GUIDELINES 23
Definition of a Finished Lot 24
DISCLAIMER AND DISCLOSURE 26
WD LAND CONTACT INFORMATION 27
IRON HORSE HILLS | COLTON , CA 3
AT A GLANCELocation Barton Road & Reche Canyon
Road within the Reche Canyon Specific Plan in the City of Colton
County San BernardinoTotal Acres 190 acresTotal Lots 186 SFR detached lotsLot Deliveries Buyer will have the ability
to begin grading with the issuance of a grading permit anticipated within approximately 6 months.
Total Neighborhoods 3 distinct lot sizes and product types allowing for strong absorption of the homes.
Entitlement Status Approved TTM #16798 and Development Agreement. DA was approved December 3, 2013. The TM expires 10 years from date DA was approved. Final Map - partially complete. Grading Plan approved by SCE and ready to submit to City.
OPPORTUNITYIron Horse Hills provides a builder the opportunity to acquire a fully approved TTM with completed Final Map and Improvement Plans. The Agency Resource permits have been approved. This site is an infill location where the local market is under supplied with lots for building. There is a limited supply of actively selling new home neighborhoods in the submarket.
Iron Horse will be the most attractively priced large lot and view oriented community in the Inland Empire, making Iron Horse a unique and stand out community with a competitive edge above the competition.
OVERVIEW OF THE LOCAL AREAIron Horse is located in the easternmost edge of Colton in the desirable Reche Canyon area. The majority of the homes in Colton are located west of Interstate 215. This community is viewed locally as part of Loma Linda given the view orientation of the lots and proximity to the Loma Linda Medical Center and retail services in Loma Linda and Redlands. Loma Linda and Redlands offer higher paying jobs and have higher priced homes thus providing a marketing advantage to Iron Horse Hills. Iron Horse is well located offering a short commute to the job centers along the Interstate 10 corridor and the Inland Empire. Job growth in the area will be significant with the concentration of well-paying jobs in the healthcare industry. The new jobs will be associated with the expansion of the Loma Linda Medical Center (LLMC) and the new development of the VA Ambulatory Center.
Commercial and retail services are located within one mile of the community and the Inland Center Mall is only three miles from Iron Horse. The close proximity to the Loma Linda Medical Center will be appealing to both family and the empty nester homebuyers.
SUMMARY OF THE COMMUNITYIron Horse Hills was designed to capitalize on the view potential of the land and will offer homes and lots that will appeal to a discerning homebuyer. The lots are segmented to allow for three distinct product lines with a range of attractive homes oriented toward entry level and move up buyers and to executives and professional business leaders. The lots are segmented as follows:
Neighborhood Unit Count Avg Lot Size (SF)
BuildingFootprint
I 62 19,023 40x60II 52 16,377 60x70III 72 18,426 50x65
EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY
Iron Horse Hills will be the only planned community developed for over 20 years in this submarket area that offers low density, view oriented homes in a hillside environment. Upon entering the community, buyers will immediately sense the quality and thoughtful approach to the design of Iron Horse Hills. Common area amenities will include a large park, tennis court, basketball courts, picnic pavilion and an extensive trail system adjacent to the community.
MARKET OVERVIEWA comprehensive market study was prepared by The Concord Group for Iron Horse Hills that provides pricing recommendations for the community and an analysis of the local submarket. There is a limited supply of lots and new homes available in this area. Crystal Ridge II is the only actively selling comparable community that is within close proximity to Iron Horse Hills. Crystal Ridge II has 24 remaining homes for sale. Most of the housing stock in the area consists of 30 year old product that does not offer any sense of community or sense of place.
Approximately 30% of the homes in the community offer territorial views of the valley and surrounding mountains.
The majority (55%) of the new home sales in the competitive market area over the last 10 years have taken place in the $400,000 - $650,000 price range.
In the second fastest job growth area in California, Iron Horse Hills is the only master planned view oriented community to serve the upscale market of medical and other professionals, business owners and executives. The Inland Empire, with 4.3 million residents, is generally considered the affordable alternative to living in Los Angeles or Orange County; housing alternatives for the upscale population-serving professionals is very limited and tends to be in the hillside areas. The historical center of wealth was the City of Riverside, as well
as nearby communities such as Redlands and Loma Linda; in more recent history, upscale communities were developed in Claremont and Corona. However, it’s been several years since a hillside community of the scale of Iron Horse has been developed in the vicinity. This is an infill project within easy commute of the medical centers, courts and civic centers, Universities and job centers.
See the following section on MARKET for details.
HISTORYThe partners and owners of this property originally acquired the site in 2005 and completed the entitlements. As the market declined the owners held the property and in recent years revised the maps and grading plan while obtaining the resource agency permits to allow for the development of the community. The site remains in its native condition today.
KEY HIGHLIGHTS• Fully approved TTM with DA and Grading Plans to allow
grading to commence within approximately 6 months. Grading plan is approved by SCE and ready to submit for final City approval.
• All resource agency permits have been obtained.
• Orientation in the desirable and supply constrained market of east Colton/Loma Linda.
• Product segmentation with 3 distinct lot sizes in the community.
• Large lots offering panoramic views and desirable common area amenities.
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This image represents a graphic illustration of a comparable view of the subject property.
EXECUTIVE SUMMARY
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LOCATION AERIAL | LOW AERIAL WITH OVERLAY
Loma Linda Medical Center
•Reche Canyon Rd
•
Barton Road
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LOCATION AERIAL | REGIONAL MAP
Ontario Int’l Airport
IRON HORSE HILLS
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LOCATION AERIAL | LOCAL MAP
COLTON
LOMA LINDA
LOCATION/ACCESSIron Horse Hills is located on the southeast side of the 215 freeway; south of Barton Road, west of Reche Canyon Road and north of Westwood Street, in the City of Colton
IRON HORSE HILLS
RIVERSIDE
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LOCATION AERIAL | AMENIT IES MAP
Centerpointe CenterWalmart SupercenterUPS RossDenny’s Carl’s JrEl Pollo Loco7-11StarbucksJack in the BoxMcDonald’sDel TacoWendy’sBank of AmericaGiant RV
SETBACKSFront: 18’Rear: 20’Side: see page 9 for details
ESTIMATED COST TO COMPLETEConstruction: $183,995/duFee’s and Consult: $39,875/du(includes fee credits)Reim+CFD: $55,616/duTotal: $168,254
ENTITLEMENT SUMMARYTentative Map No. 16798, Specific Plan Amendment and EIR were approved in September of 2006. Amended Development Agreement was approved December 3, 2013 by the City. Owner has received approved 1602, 401 and 404 permits.
IMPROVEMENTSSite is raw and unimproved. It is expected that the site will be mass graded in a single phase to allow for the concurrent buildout of the 3 product lines.
PRODUCTNo required product segmentation.
BONDS No bonds are outstanding.
CFD/ASSESSMENTThe City is sponsoring the CFD of approximately $40,000 per unit. The CFD will include backbone infrastructure and city fees. The seller has initiated the formation of the CFD with DPF&G. The CFD will be a credit to the Cost to Complete.
HOAThere will be an association for the slope and landscape maintenance of this community.
UTILITIES/INFRASTRUCTUREAll utilities and infrastructure are available to the site and specific details will be provided.
SERVICE PROVIDERSWater, Sewer and Electric - City of ColtonTelephone - VerizonGas - Gas Company
SCHOOL DISTRICTColton Unified School District – see attached for detail
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DEVELOPMENT | DUE DIL IGENCE
The following Due Diligence Materials can be accessed with the following link:
2014 Est. Pop by Single Race Class 10,816 282,107 2,308,610White Alone 56.73% 59.18% 59.53%Black or African American Alone 5.75% 5.54% 6.33%Asian Alone 8.21% 3.99% 6.26%Some Other Race Alone 22.23% 24.81% 21.35%Two or More Races 6.19% 5.23% 5.11%
2014 Est Pop Hisp or Latino by Origin 10,816 282,107 2,308,610Not Hispanic or Latino 48.43% 48.00% 52.58%Hispanic or Latino 51.57% 52.00% 47.42%
2014 Est. Population by Sex 10,816 282,107 2,308,610Male 50.22% 49.70% 49.77%Female 49.78% 50.30% 50.23%
2014 Est. Average Age 34.10 35.30 36.20
2014 Est. Pop. Age 25+ by Edu. Attainment 6,556 171,370 1,434,910High School Graduate (or GED) 30.41% 28.82% 25.66%Some College, no degree 25.32% 26.34% 26.10%Associate Degree 5.66% 6.87% 7.40%Bachelor's Degree 12.19% 9.81% 12.93%Master's Degree 3.40% 3.49% 5.13%Professional School Degree 1.01% 0.78% 1.32%Doctorate Degree 0.55% 0.47% 0.85%
2014 Est. Households by Household Type 3,180 82,850 715,501Family Households 7.80% 7.80% 7.44%Nonfamily Households 2.20% 2.20% 2.56%
2014 Est. Average Household Income $63,865 $63,922 $69,254
2014 Est. Median Household Income $54,882 $50,573 $52,648
2014 Est. Average Household Size 3.4 3.39 3.18
2014 Est. Pop. 16+ by Occupation Classification 4,276 111,829 955,906Blue Collar 20.65% 27.49% 22.56%White Collar 62.16% 51.73% 54.82%Service and Farm 17.21% 20.78% 22.62%
2014 Est. Avg Travel Time to Work in Minutes 44.36 42.31 34.38
2014 Est. Tenure of Occupied Housing Units 3,180 82,850 715,501Owner Occupied 65.85% 71.70% 67.41%Renter Occupied 34.15% 28.30% 32.59%
2014 Est. Median All Owner-Occupied Housing Value $218,089 $194,833 $226,302
2014 Est. Median Year Structure Built** 2000 1990 1988
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MARKET | THE CONCORD GROUP STUDY
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MARKET | THE CONCORD GROUP STUDY
IRON HORSE HILLS | COLTON , CA 20
MARKET | THE CONCORD GROUP STUDY
IRON HORSE HILLS | COLTON , CA 21
MARKET | THE CONCORD GROUP STUDY
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MARKET | THE CONCORD GROUP STUDY
IRON HORSE HILLS | COLTON , CA 23
OFFERING GUIDELINES
OFFER DUE DATE Offers are due on Wednesday, December 16, 2015
OFFER PREPARATIONDue diligence information is available by clicking on the following link: Iron Horse Due Diligence
PRICESubmit offer.
FEASIBILITY PERIODBuyer will have 45 days from LOI to complete a feasibility analysis of the property. A draft of the PSA from Seller will be provided to a buyer upon being awarded the project.
DEPOSITSBuyer to open escrow with a refundable deposit of $100,000. Upon approval of the feasibility period the deposit shall be increased to 10% of the purchase price, which shall become non-refundable and applicable to the purchase price.
CLOSE OF ESCROWClose of escrow will be 30 days after approval of the due diligence period.
TERMSAll cash at the close of escrow. Seller may consider structure with financing for a portion of the sales proceeds.
A “Finished Lot” shall include costs up to blue top pad condition and to improve the streets and underground infrastructure within the streets and right of ways including development fees, but not including the house structural building permit and plan check fees, nor any additional lot prep or house connections for ultimate home construction.
The following are costs included in our typical lot costs:
A. PROFESSIONAL SERVICES INCLUDING
1. Civil Engineering of tentative maps, final engineering plan preparation of final map and improvement plans.2. Control for the construction of grading, underground, and street improvements.3. Final monumentation including survey monuments, property corners, street center line and swing ties.4. Landscape Architect for street trees, open space lots and parks. Front, side and rear landscaping for individual houses is not included.5. Soils Engineering for field controls during grading, backbone utility backfill compaction and final reports. This does not include on-lot utility services or foundation tests.
B. FEES AND ASSESSMENTS
1. All necessary plan check and inspection fees for in tract improvements (such as grading, storm drain, sewer, water, streets and landscape as required by the conditions of approval.) 2. Bonding according to the agency’s requirements (not to exceed initial two year term). 3. Estimated lot development mitigation and connection fees based on fees in place at time of contract. THIS DOES NOT INCLUDE ANY PROPOSED FEES OR FEE INCREASES.4. School Fees are based on estimated home sizes; builder
should adjust School Fees based on their projected home sizes. C. LAND CLEARING AND GRADING
1. Site clearing, grading and compaction in substantial compliance with rough grade plans. 2. Initial erosion control measures at the completion of the grading.3. Retaining walls added by the builder for the benefit of house lot fit are not included unless otherwise provided in the Seller’s budget.
D. SEWER SYSTEM
1. Installation of public sanitary sewer collection system per the approved plans. Including service laterals installed to each residential lots’ property line closest to the sewer main.
E. STORM DRAIN SYSTEM
1. Installation of storm drainage systems per the approved plans, including any required retention and detention basins.
F. WATER SYSTEM
1. Installation of an operational public water distribution system in accordance with the approved plans.2. House water meters.
G. RECYCLED WATER
1. Installation of an operational public recycled water distribution system in accordance with the approved plans.
DEFINITION OF A FINISHED LOT
IRON HORSE HILLS | COLTON , CA 25
2. Landscape water meters.
H. STREET IMPROVEMENTS
1. Installation of any and all required interior streets, striping, curbs and gutters, sidewalks, drive approaches, handicapped ramps, street signs, and street lighting, as required on the approved improvement plans.2. Repair and Replace of all curb, gutter, and street improvements (not to exceed $500/lot).
I. UTILITIES
1. Installation of any and all utility lines, mains, stub-ins and facilities adequate to service the Lots; electrical conduit (or direct bury) and trenches for installation of natural gas, telephone and cable television transmission.2. Electric and gas fees and costs are included.3. Service extensions from the right of way distribution to the house are not part of the finished lot cost.4. Deposits that are refundable are credited to the Finished Lot Cost.
J. LANDSCAPING AND FENCES
1. Installation of slope landscaping over 3’; entry monumentation; greenbelt and parkway landscaping (non-lot fronting backbone streets only), pedestrian pathways, open space, park improvements as shown on the plans, if not already a master developer obligation.2. Perimeter walls as required by tentative map noise study. All other interior fences, walls, view fence, and gates are to be built by the merchant builder and are NOT part .of the finished lot costs.
K. CONTINGENCY
1. 10% contingency on hard costs only.
THE FOLLOWING ITEMS ARE NOT INCLUDED IN“FINISHED LOT” COSTS
1. Precise grading.2. Staking of 80’s and 20’s (unless detailed in Cost to Complete budget).3. Fine Grade certification.4. Lot spins, re-compaction or pre-saturation.5. Soil or lot recertification (unless detailed in Cost to Complete budget).6. Erosion control maintenance beyond 1 year.7. Spoil dirt and rough and finish pulls.8. Street cleaning or drag streets.9. Lot fencing.10. View fencing.11. House front, side, rear (including slopes less than 3’) yard landscaping including irrigation.12. Any landscaping added at the discretion of the builder (i.e. parkway or perimeter landscaping).13. HOA costs.14. Security for models.15. Weed abatement or property maintenance costs.16. Building plan check, permit fees, and inspection fees for the construction of the house. 17. House backflow or dual waste systems.18. Legal costs.19. Model plans, permits and fees.
If an item is not included on the cost to finish estimate, it is not a part of our definition of a finished lot cost.
DEFINITION OF A FINISHED LOT
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QUALIFICATIONS AND DISCLAIMER
This sales information package and contents hereof, is provided for informational purposes only. Nothing contained
herein is deemed to constitute an offer of sale or to impose upon Seller, or any of their affiliates, any obligation to
negotiate the sale of any parcel or property, and all offers to purchase this property must be accepted by the Seller in
writing. No representation or warranty, expressed or implied, is made regarding the information set forth herein, the
factual accuracy or completeness of any such information or other materials contained herein. Seller reserves the right
to make changes from time to time to any of the information contained or referred to herein, to change the price and/
or terms and may withdraw the property from the market all without any obligations to notify the recipients of this
sales information package.
Any party which may enter into any written agreement to purchase the subject property shall make its own independent
investigation regarding all aspects of the subject property and the development contemplated thereon without complete
reliance upon the materials contained herein. Nothing contained herein is intended in any way to limit or mitigate the
need for any independent investigation, which a prudent buyer would be required to undertake in order to determine
all facts which could have any effect upon the acquisition or development of the subject property. Any prospective
buyers (“Buyer”) are strongly advised to investigate the condition and suitability of all aspects of the property and all
matters affecting the value or desirability of the property, including but not limited to the following items: size, lines,
access and boundaries; zoning and land use; any conditions of approval, cost and fees to develop the site; utilities and