The Opportunity - Purchase 2 Buildable Lots & 1 Existing House
Located in Laguna Beach in Southern California.
In a gated communty:
The THREE SUBJECT PROPERTIES have Unobstructed White Water Views
There are three (3) lots. Two lots have never been built on. One lot, the middle lot, has an existing house that is approaximetely 1,750 square feet. Lot 1, the southerly lot is vacant and +/- 7600 sf. Lot 2, the northerly lot, is vacant and +/- 9400 sf. The existing home is on a lot that is +/- 7200 sf.
The property is not listed. We believe we are the only group with a direct access to the principal decision maker for ownership.
There are multiple ways to approach the opportunity. One could purchase just one of the vacant lots and construct a custom home. Or one could purchase the existing home and give it a major remodel. Both vacant lots could be purchased. Or all three could be purchased and treated as a phased development.
Because having control of three lots of this caliber is such a rare opportunity in Laguna our primary model has been to take on all three lots and treat them as a phased development.
- Because the design development and permitting process in Laguna is an extended effort likely taking 14 months all three properties would go through the full design development process concurrently.
- Then Lot 1 would start construction. A process that should take between 12 and 14 months. During its initial construction stages lot 2 could be used as the 'bone yard'.
- Lot 2 would start construction about 6 months after Lot 1. The concept is partially to facilitate contruction and partially to be a good neighbor. Once Lot 1 has progress to the point that the stucco and dryall have started then foundation work on Lot 2 would commence.
- For the convienience of our buyer of the existing house we have delayed its start until Lot 2 has been dried in and the inside work commences.
NOTE: we recognise the phased construction adds time to the overall project schedule which has a negative impact on the investment's IRR, ROI and Multiple. We do believe this strategy will give us the most efficient subcontractor pricing and make us better neighbors