Two parcels totaling 7.73 acres along the north side of Normandy Road between Urania Avenue and Piraeus Street in Encinitas 92024, have been sold for $13,887,000, cash.Nice flip by City Ventures. A double in 7 months!
The buyer was Lennar Homes of California Inc., Coastal Division, 25 Enterprise, Suite 100, Aliso Viejo 92656, attention: David Stearn.
The seller of the property (assessor's parcels 254-400-14 and 19) was CV Urban Land LLC, with City Ventures LLC, its sole member. Scott Homan is chief financial officer of City Ventures.
In December 2012, the property was sold for $6.21 million.
$1.8 million per acre. Gonna have to pack 'em in pretty tight to make that pencil out.
What's the zoning on these parcels?
ReplyDeleteGood question. Most of the houses in that area look like ~10,000 square feet or more, which would be R-4 ish. Normandy Hill Lane is slightly denser at around 7500-8000.
DeleteCan you sell houses in that location profitably starting at $450,000 for the lot alone, plus infrastructure and pesticide removal?
If the pesticide removers are left to their own devices and don't do what they were hired to do (think the west side of the freeway, where the city looked the other way even as residents became sicker and sicker as the pesticides blew around), then perhaps the project would pencil out.
ReplyDeleteWith density bonus, they might be able to make it pencil out. Sad but true!
DeleteThose parcel numbers don't come up in a search on the MyEncinitas site, but on the zoning map, that area shows some ground as RESID 2.01-3 DU/AC and other as RURALRE 1.01-2 DU/AC.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteyou can all thank Nixon and every other puppet president including Reagan, Bushes, Clinton , and yoMomma ( I mean Obama- thats so fun to say)
ReplyDeleteIts the system that is broken that will soon fail.
Its the mass and momentum of the past USA that keep this fiat currency afloat. As soon as the masses awake to the fact, the USA dollar has no value-BAMM- game over and game on.
At that point all the government deadbeats will be offed. and Hunger Games with a little bit of Road Warrior will peruse.
Not meant as a threat. Just a prediction. Just like I predicted the peak of the Real Estate bubble of November 2005 when everyone else was saying it will keep going up- I predicted that exact month as the peak in (11-2005) 6-2004 to prove my friends wrong. Some listened some didn't- Guess which are in better shape today.
I wish you all well. One thing for certain. By 2025, some serious shit like "collapse" or " readjustment" of America will have happened.
That is only 12 years away. All I am saying is prepare for the coming of some pretty serious shit. and we are not going to be talking about people pissing in my daisies.
Until then, I prefer not to go toward the PB model and let families with children stay in down town.
To clarify....
DeleteI meant to say....
Given these fine years before 2020, I hope Encinitas choses the keep Encinitas a chill beach community and not PB Norte.
Peace out and get your shit in order.
Love,
Anon
Good job WC of keeping this blog real. Its the best news source of Encinitas.
ReplyDeleteGreat Job and keep up the good work!
Anon
The county assessor shows parcel number 254-400-14-00 as 1110 Urania St. Should be Ave. City zoning is R3 = RESID 2.01-3 DU/AC. The other parcel number (-19) is west of -14 on the corner of Piraeus and Normandy, and is also R3. How will investors get a return on almost $14 million paid for those two R3 parcels? 7.73 acres X 3 per acre = 23.2 DU. $14 million / 23 = $608.7K per house lot land only to break even without upzoning, which Prop A doesn't allow without a public vote that the developer must pay for. How does density bonus affect the DU numbers allowed?
ReplyDeleteDude, the land is residential. THIS MEANS THE STATE trumps are local zoning, The developer can request and the city must grant the developer 3 incentives to increase density including lot coverage, set backs and DU's per acre. So 25 units an acre looks real profitable. The coast news ran a editorial last week of high density at a former greenhouse in oceanside. Check it out.
DeleteObviously, it's residential. That's why it's called R3. Anybody who's paying attention knows state density bonus trumps. The question is by how much does it increase the three DU per acre zoning?
DeleteThe surrounding area homes are all in the $950+ range, so if we assume a $1M average price, which appears very reasonable, and a hard/soft costs of about $300k, using your numbers that's $100k profit per unit. Since we're just coming out of the trough in the real estate market they may go for more, but the building costs will also go up - hopefully a wash. So that's a 10% unlevered return. Pretty lean for the risk involved. Eek out 2 more units to 25 and yu get a 16% unlevered return. That sounds better. You could probably build something similar to the Normandy Lane neighborhood to the east but of higher quality, and build a huge noise/wind screen for the freeway. What I bet they'll do is hold it vacant until the next downturn and then make a decision.
Delete- The Sculpin
10:18 look mat the units per acre at Desert Rose, does that tell us anything? Also, word is Lennar is retaining high density lawyer Marco Gonzalez to push maximum density given his and the CLG successful track record of running roughshod over Encinitas residents and what appears to me his special access at city hall. (ok , that last bit was a joke........or was it?)
DeleteIts called no risk....
ReplyDeletethe developer carries zero....
the tax payer/ future collapse picks up the tab.
That is the fact. Watch and see. You don't need to wait that long.
Sorry,
ReplyDeleteFor those that need to catch up, the USA feds have destroyed the US Currency. Its just a matter of time until the whole fiat, which means fake, dollar scam collapses.
Best of luck,
Anon
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ReplyDeleteLynn,
ReplyDeleteSometimes less is more._______
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ReplyDeleteThis comment has been removed by the author.
ReplyDeleteOn behalf of Lynn on this subject I would like to share her concern, paraphrase and just yell: "YIKES!!"
ReplyDeleteEncinitas City Council published their cutesy strategic plan as agenda item #8 for next Wednesday. Page 6 of the Council report has a photo from the Zelman Development Co. website of their development at the Encinitas Town Center. Zelman contributed $17,500 to the NO on prop A groups.
ReplyDeleteFrom the Luecadia Blog in 2011:
ReplyDeleteJanuary 13, 2011 12:01 PM
In 1999, when Sheila Cameron tried to fire Encinitas City Manager Lauren Wasserman, Wasserman produced a 'greatest hits' audio tape of the dozens of angry threats Cameron made against him and other Encinitas City employees on their city staff answering machines.
The end result was that because of the "greatest hits" tape of threats, Wasserman was "upgraded" to a higher pay grade with Cal Pers that allowed him for the past decade to receive substantially increased benefits because of the tape; that will continue for the rest of his life.
Sheila Cameron is the absolute LAST person who should be involved in choosing a City Manager for Encinitas.
The oft criticized 'three council votes' for an item to be agendized was a DIRECT result of Cameron's ten months as Mayor of Encinitas, AND one of the reasons Wasserman was fired, for Wasserman continued to agendize items that the other four council people wanted to be heard...that Cameron would not agendize.
After Cameron was removed (for cause,ask the County Sheriff) the other council people adopted the 'three person policy' to make sure a lone Mayor would never stop something important from being agendized again.
Wasserman is probably still laughing.
That you, Jerome? Mikey.
DeleteWireFire seems to have been reactivated. Still sour after that loss in 1998?
DeleteI can't wait to see the RINO Stocks try and run again. I have a list a mile long of his ills.
ReplyDeleteThe largest was his vote for the 35% increase in all City Pensions including his own in 2005. His vote was when he and Mark Muir become best buds and it raised Mark Muirs pensions he receives for the rest of this life $50,000 per year from about $120,000 a year to a whopping $170,000..... What a total scam!
No wonder Muir has tons of cash to throw around. Stocks gave him all our tax money.
Seems criminal to me.
Muir's replacement fire chief now makes $210k. Quite an increase since Muir's days
ReplyDeleteWTF is whit that..... all for an easy job.
DeleteMan if this isn't the biggest criminal case in recent history.
Tax payer are being robbed.
Why don't the women that are sexual harassed by Boob Filner just kick him in the balls?? I guaranttee that will stop him from harassing the next woman. Or better yet, wear a wire and record the DOM, that's Dirty Old Man, and then post it on you tube.
ReplyDeleteAgree. If some ugly out of shape 70 year old pervert said something nasty to me, I would crack those old balls so hard, he would remember what pain feels like.
Delete12:28
ReplyDeleteWhere does your gross-o-meter peg the needle on potty mouth perverts for age, fitness and beauty?
Filner registers a 8 out of 10 on the gross-o-meter- He would get his balls cracked if he said a wise ass comment to me?
ReplyDeleteIf a woman "sexually harassed" a man, there would be no outcry. There's a double standard.
ReplyDeleteDepends on the woman.
DeleteEither this group of Anon's is attempting to be funny by making really lame jokes, or have absolutely no clue what sexual harrassment is about. I'm not sure which is scarier......
Delete- The Sculpin