Wilder in the City of Orinda, California

The city of Orinda is located east of the Caldecott Tunnel and roughly 30 minutes from the city of San Francisco. The small community is home to many executives, professionals, and affluent families drawn to Orinda’s proximity to the city, nationally-rated schools, small-town charm and semi-rural atmosphere. In the western portion of the community, California-based Brooks Street is currently developing an exclusive custom and semi-custom neighborhood named Wilder that will set a new caliber of masterplan development in the Bay Area. Located in the Gateway Valley, Wilder will boast spectacular valley and mountain views and represents one of the last remaining parcels in the largely built-out and highly prestigious community of Orinda. The community envisioned by Brooks Street will incorporate a host of amenities including a network of walking trails woven throughout the community, a swim center, and sports parks. “The land plan remains sensitive to the area’s natural landscape and the community’s design continues to reflect the heritage and small-town charm of Orinda”, says Chris Yelich of Brooks Street. About 1,400 acres at Wilder is designated open space and many of the site’s mature oak trees will be preserved. “The team at Meyers Builder Advisors immediately understood the vision of this community and the quality of development we were trying to achieve.” “Wilder will offer a truly one-of-a-kind development. Brooks Street continues to take a forward-thinking approach when developing a community with a deep understanding of the legacy they are creating. When positioning this unique community, we expanded our research to include affluent communities throughout the Bay Area and provided case studies on comparable high-end masterplan neighborhoods,” notes Michelle Wolkoys, Principal at Meyers Builder Advisors. At build out, Wilder will offer 245 homes on sites ranging from approximately 9,000 square feet to more than one acre.

Market Sits in the Lap of Luxury
Southern California by the Numbers
With Southern California showing a 2% quarterly dip in the median new home price, we anticipate the growing backlog of homes (due to the much slower current sales volume) will keep new home prices in check through the remainder of the year. No county is immune to the downshift in the housing market with each posting quarterly declines in annualized new home sales. We expect all counties to post double-digit losses in new home closings this year, although Los Angeles County should experience the smallest decline of 15%.

Sales in the previously high-volume tertiary markets such as the Antelope Valley and the High Desert have slowed substantially. Gas prices, which continue to escalate, now influence buyers’ decisions for these commuter markets. By comparison, well-located (and well-priced) projects that offer an easy commute to major employment nodes have fared better during the downturn. High-density urban developments that offer great walkability to retail are also attracting buyers. In Rancho Cucamonga, Shea Homes’ two attached projects – 24-Seven and Three-65 – boast a whopping combined sales pace of 28 homes per month!

Finding qualified buyers will continue to be the challenge for builders this year in light of stricter lending standards and the sub-prime fallout. The key for builders, particularly in entry-level markets, will be to present homebuyers not only with a price sheet and a long list of incentives but to translate these numbers into a monthly payment. This is particularly important in markets where varying tax assessments play a large role in the total monthly payment. A few savvy builders have given mortgage representatives and in-house lenders a more prominent role in the sales office to better explain to prospective homebuyers how their dream home can be within reach. An easy comparison chart of how your project stacks up against local competition can be an invaluable marketing piece in today’s market.

MARKET WATCH: SECOND HOME MARKET
Are Builders Making a Play for Vacation Buyers?

Southern California remains one of the most popular resort destinations in the country with its temperate weather, spectacular coastline, theme parks, golf courses, and world-class shopping. Stretching roughly 200 miles from Santa Barbara to San Diego, Southern California’s second home market relies heavily on the drive market from areas throughout California and Arizona.

Unlike other popular resort destinations such as Hawaii and Florida, Southern California has only seen a handful of new home projects in recent years that cater specifically to the second home market. In fact, many are comparatively small-scale developments such as Makar Properties’ 63-unit attached and detached development located adjacent to the St. Regis Hotel in Dana Point. This property targets the second home buyer by offering the amenities of the hotel, beach club, and adjacent golf course. Many recent second home projects have met with strong success, given the limited offerings catering to this market niche. In Rancho Palos Verdes, the Terranea Resort sold 51 ocean casitas and villas in an astonishing 2 1/2 hours, with units starting from $1.9 million. Homeowners at Terranea are limited to stay at their property between 60 to 90 days and can rent out the home to vacationers through the community’s management service.

From 2000 to 2005, the Downtown San Diego market experienced a 468% increase in condo sales with the investor and second home market comprising an estimated 40-50% of sales at some projects. Hard Rock Café in Downtown San Diego was the first branded condo hotel to enter the Southern California market and sold out in one day. While the investor market has all but disappeared in the wake of slowed price appreciation, second home buyers continue to look for deals in the San Diego area.

Looking ahead, offerings for second home buyers will continue to be filled by the condo hotel market and target the high-end buyer. In Beverly Hills, the Montage Hotel will offer 25 for-sale residences on the top three floors of its new hotel. The W Hotel expects to begin sales of 143 units in Hollywood in Fall 2007, with some units to command prices up to $6 million. The trend of branding vacation villas with the amenities of a hotel is an attractive pull for second home buyers looking for low-maintenance, high-luxury units.

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