A million-dollar home in Tustin,relatively far from the beach and below the hills, on a former military base, near two hangers that may or may not be demolished,might strike some as remarkable.
Then again, this is Orange County, where years of heady gains have pushed up home prices, especially for new homes.
Earlier this month, I toured model homes on the former Tustin Marine base with Rich Knowland, a local division president at Lennar Corp., and Thomas Mitchell, president of the Southern California arm of William Lyon Homes Inc.
Both builders are putting up million-dollar homes near Harvard Avenue and Sweet Shade, a new street carved out between Barranca Parkway and Warner Avenue. Lennar and William Lyon recently sold out the first phase of homes at Villages of Columbus.
The builders plan a variety of homes at various prices on the former base.
The pricier homes are spacious. Lennar, based in Miami with its California unit in Aliso Viejo, has homes ranging from 2,770 to 3,168 square feet in its Alexandria development. Newport Beach-based William Lyon has houses ranging from 2,417 square feet to 2,803 square feet at its Lantana project.
|
|
“Darth Vader building” in Sacramento: Triple Net sold for $79 million |
The models had everything the modern buyer seems to want: bathrooms large enough to live in, stainless steel appliances, kitchen islands and those peculiar landings at the top of stairs for the resident who desires a breather after climbing a flight.
Problem is, you can look at housing from several different angles. For months, the California Association of Realtors has said only 11% of OC residents can afford a median-priced home here,one of the lowest affordability indexes in the nation.
The association focuses on income in its calculations. But people buying a million-dollar home are generally selling one that’s seen a run-up in price and can make a large down payment, the builders said.
“The reality is it’s all about equity,” Lennar’s Knowland said. “No one is buying this kind of home on income.”
Santa Ana-based Triple Net Properties LLC continues to do big deals outside OC.
The company, which buys buildings itself or pools together investors on deals, earlier this month said it sold Sacramento’s 28-story Renaissance Tower, known as the “Darth Vader building.”
Triple Net sold the building for $79 million, less than two years after buying it for about $66 million. The buyer wasn’t disclosed.
The company owns five other Sacramento-area properties.
About 77% of the dark, imposing tower is leased, almost entirely to the state Conservation Department. The building’s vacancy is about the same as when Triple Net bought it.
In a deal in Denver, Triple Net bought Sixth Avenue West on behalf of investors.
The eight-story office building is 124,555 square feet and 93% leased to tenants, including Black Hills Energy Inc., Computershare Investor Services Inc. and Ceric Inc.
In a suburb of Orlando, Fla., Triple Net bought Maitland Promenade, also for investors.
Maitland Promenade is a 230,366-square-foot, five-story office building. It was built in 2001 and is full with nine tenants, including Star Networks Inc., UnitedHealth Group Inc. and Option One Mortgage Corp., an Irvine-based unit of H & R; Block Inc.
The promenade was bought from Opus Real Estate Ventures LLC.
Shops Take Space
Irvine’s Birtcher Development & Investment Co. has lined up tenants for its planned South Coast Home Furnishings Centre in Costa Mesa.
The developer is building the center at the former regional headquarters of State Farm Insurance Cos., which closed the site as part of a consolidation. Birtcher wrapped up its $29 million buy last month.
Wickes Furniture is set to anchor the eight-building, 300,000-square-foot project. Other tenants: Banner Mattress, La-Z-Boy, Legends, Creative Leather, Salmo’s Furniture, Munro’s Furniture, Easylife Furniture, Interior Surroundings, The Great Steak and Potato Co., Samurai Sam’s and Taco Time.
Birtcher has leased 55% of the project at 3333 Hyland Road, near Ikea. It’s set to open in early 2007.
“We are replacing the traditional ‘furniture row’ with a one-stop, purpose-built home furnishings,” said Brandon Birtcher, president and owner of Birtcher Development.
Jim Snyder, Ken Gould, Andy Walburger and Mike Abel of Lee & Associates Commercial Real Estate Services Inc. are leasing the center.
Building on Water
Newport Beach-based Davis Partners LLC plans to put up a two-building, 86,000-square-foot office development in Lake Forest on a site that contains a water retention basin.
The developer paid $1.7 million to SBC PacTel Systems, part of SBC Communications Inc., for 5.1 acres at 25192 Commercentre Drive.
The plan hinges on the extension of Alton Parkway, which officials have discussed for years.
Davis Partners expects the expansion to occur in the next two years, so it can start construction on the buildings in 2007, according to a spokeswoman.
The company should offer the two buildings for lease.
