We were one of the first to build a luxury community of modern homes in the $1.5M to $3.5M price range in Palm Springs, CA. This community received four Gold Nugget Awards from the Pacific Coast Builders Conference.
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Opportunity for Differentiation
It was the perfect storm;
- The firm was looking for a location to build high-end modern homes.
- We acquired a pristine parcel of land in the Southernmost part of Palm Springs ideally suited for home sites.
- Palm Springs was poised to embrace a rebirth of the modern movement.
Vision
“From the start, we envisioned ALTA as the destination for contemporary architectural enthusiasts. The goal was to bring the design excellence of custom architecture to a master planned, production home community on a grand scale.”
Frank Eder, General Manager of the Development Team
Key Results
Acquisition: In May 2004, we acquired raw (fee) land at the corner of Bogart Trail and South Palm Canyon Drive in Palm Springs, CA with the intent of building a semi-custom home community.
During escrow, we renegotiated the purchase contract to provide approximately 10% of purchase price to offset entitlement risks and completed nearly 90% of civil engineering.
Due Diligence Research: Primary market research conducted by the development team indicated that modern architecture would allow us to trump prior sales comps by $200K per home.
Entitlements:
- Mitigated 100 year flood and drainage issues by bonding for off-site improvements.
- Managed offsite improvements to mitigate 100 year flood issues.
- Negotiated an agreement over easements with local Indians and adjacent property owners.
Final Map and Plan:
- 67 semi-custom home sites with average lot sizes of 15,000 square feet. designed so that each home site captures views of San Jacinto Mountain.
- 3 modular floorplans ranging from 2,700 sf to 4,700 sf.
- Price points from $1.53 to $3.5 M.
Ground Breaking: Ceremony is held at the site in January 2005 and pays tribute to NCCM, Patel and Donald Wexler (famous mid-century modern architect).
Grand Opening: Pre-sale marketing and sales campaigns resulted in over 1,200 people attending the Grand Opening weekend and nine deposits to begin construction.
Awards and Recognition: In 2006, The ALTA Community was the big winner at the Gold Nugget Event sponsored by the Pacific Coast Builder’s Conference and received the following awards:
- “GRAND AWARD – Home of the Year” for best single family home
across all product categories - Best Single Family Detached Home – 2,500 to 3,500 sf
- Best Single Family Detached Home – 3,500 to 4,500 sf
- “Best Development of the Year” Runner Up (Merit Award)
Sales:
By March, 2005:
- We were able to secure 40 reservations.
- We obtained DRE White Report allowing us to close escrows.
- We implemented a two part closing process in which the Buyer paid for carrying costs advancing cash flows and minimizing market timing risk.
2006:
- We closed X sales
- Plan C Model Home sells for $3.4 million in 2006
Development Team
- General Partner and Development Manager: Newport Coast Capital Management, now NCCG
- Investment Partner: ING Realty, Inc.
- Builder Partner: Devcon Construction, Inc.
- Architect: Narendra Patel—Patel Architecture
- Interior Designer: Jeffrey Jurasky—Jurasky & Associates