There’s a lot of positive news coming from the Warmington group these days. And because you are either helping us to generate it, will benefit from it, or might just appreciate hearing about some success in the industry, we’d like to share the highlights with you.
New Deals We have a variety of new deals pending in California. This includes building on 16 lots in Carlsbad, 28 lots in Davis, a total of 41 lots between two parcels in Encinitas, and 56 lots in Chino Hills. In Nevada, we are preparing to begin construction on new apartment homes in the Las Vegas area.
In Carlsbad, we will introduce our newest fee managed deal; 16 luxury homes within Poinsettia Ridge in early 2011 with anticipated pricing from the $800,000s.
Within the established Willowbank neighborhood in Davis, we will offer 20 luxurious semi-custom homes and an additional 8 below market rate homes designed to meet affordable housing needs. Models are slated to open in early 2011.
In Encinitas, we are working on two separate enclaves offering a total of 41 single-family detached homes in a prime beach-close location, approximately one mile from the Pacific. Homes will begin selling in 2011.
In August we will introduce three new model homes at Elements at Pine Valley Estates in Chino Hills. Elements also is a fee-managed community. It will include a total of 56 single-family homes within a gated community adjacent to Western Hills Golf Course. Prices are anticipated to begin from the upper-$700,000s.
Apartment Homes In Las Vegas We have three new apartment home communities representing over 750 units with 178 that are slated to begin construction later this year and opening in the second half of 2011. This is in addition to several hundred apartments already completed in Las Vegas.
Grand Openings We have opened two furnished model homes at our newest Bay Area community, Grand Marina Village on the island of Alameda. This is a waterfront community located near Grand Marina on the Oakland estuary overlooking Coast Guard Island. It includes 34 market rate homes priced from the upper-$600,000s in addition to six below market rate affordable homes. We have had hundreds of groups tour the models. Phase One is nearly sold out and Phase Two has just been released for sale.
Grand Marina Village marks our return to the island of Alameda. Our first development there included 475 single-family homes in the master planned community of Bayport Alameda, which sold out in early 2007.
Sales Success Sales continue at a brisk pace at Day Creek Highlands in Rancho Cucamonga. This also is a fee-managed community that includes 73 single-family homes priced from the upper $400,000s. Open since October of 2009, this neighborhood is now approximately 50 percent sold, and we have averaged more than 4 sales per month for the past 8 months.
In August, we will close the last two pending escrows at Trieste, a neighborhood of 107 single-family homes overlooking the La Costa County Club in the La Costa Greens master planned community.
In February, we debuted 12 model homes within three brand new neighborhoods in Northern Terrace in the master planned community of Providence in northwest Las Vegas.
With plans for 482 homes, Northern Terrace represents another successful fee management deal for Warmington. Since the grand opening, 27 homes have been sold for prices that range from the mid-$100,000s to the low-$200,000s.
Chateau interiors & design Warmington’s affiliated design center, Chateau Interiors & Design, has seen great success on numerous fronts during the past year. As an independent company, Chateau has added new clients for both its design center and its Studio Chateau software program. In 2009, Chateau began offering the licensing of Studio Chateau, an Internet-based options management software system, to other design centers and homes builders. This has opened a whole new line of business and has positioned Chateau as an emerging leader in providing access to the most thoroughly tested and efficient options management system available today. Additionally, Chateau has expanded its offering of complete design center services to home building companies other than those of the Warmington group with new clients including Trumark Homes, TRI Pointe Homes, The New Home Company and more to be announced over the coming months. The management of Chateau Interiors & Design is committed to a culture of innovation and creative thinking in their application of new home builder design services and implementation.
And Finally… The Warmington group continues to pursue new land deals throughout Southern California, the Bay Area, the greater Sacramento region, and Las Vegas. Additionally, we are prepared to assume more fee management and consulting responsibilities in these same areas, helping our lenders and partners protect, maintain or enhance the value of their real estate assets.
Warmington also offers a full spectrum of real estate management and development services from project analysis, asset protection, property management and entitlement processing to planning, building, selling and servicing new residential production homes, condominiums and apartments.
Our Emery neighborhood is featured in the June 2010 issue of Builder and Developer magazine. Editor Kristen Eichenmuller explains why Emery at Northern Terrace is a winner in more ways than one.
New Community Hits the Jackpot
Warmington Residential Nevada recently celebrated the grand opening of one of their newest communities, Emery at Northern Terrace, in northern Las Vegas.
Although some of the hardest hit areas in the nation, such as Las Vegas, may interest builders for future development, communities are currently emerging, and will sucess. Emery one of three new nieghborhoods at Nortehrn Terrace and constructed by Warmington Residential Nevada, is located within on of the nation’s top-selling mater-planned communities in northern Las Vegas.
>>click the image to read the full article<<
Warmington president and CEO Jim Warmington, Jr., was recently quoted in this Bloomberg.com article discussing the home buyer tax credit.
Written by By Kathleen M. Howley – Jun 11, 2010
A new home under construction
Paul Grzybowsky cuts wood for a new home under construction at the Split Rock at Entrada development in St. George, Utah. Photographer: George Frey/Bloomberg
Construction crews for LGI Homes begin work at 4 a.m., pouring concrete slabs for houses before the heat of a Texas day. They don’t stop until 6 p.m., and usually work six days a week.
U.S. builders such as LGI Homes are on a tight deadline to finish houses by the end of June so purchasers can get a federal tax credit of as much as $8,000. Buyers had to sign a contract by April 30 and must complete the transaction by July 1 to qualify. That’s speeding up a construction process that for some builders can take five to six months.
“We have people we need to get closed by the end of the month,” said Eric Lipar, 39, chief executive officer of Conroe, Texas-based LGI Homes. “There is a sense of urgency.”
Senate Majority Leader Harry Reid proposed a three-month deadline extension yesterday amid concern that a rush of buyers created too big of a backlog. New-home contracts rose 30 percent in March and 15 percent in April, the biggest two-month gain in records dating to 1963, according to the Commerce Department. About a third of the April signings were for homes under construction, and a quarter were for those that weren’t started.
Waiting to see if a new home will be finished by the credit deadline can be nerve-wracking for buyers, said Charlie Li, a civil engineer in Kansas City, Missouri, who is purchasing a property in the nearby suburb of Overland Park, Kansas. Li drives by the building site every day after work. The four- bedroom house probably will be finished in two weeks, he said.
‘Under the Gun’
“We’re under the gun, because you never know if the weather will impact the schedule,” Li said. “If I don’t see that progress has been made, it makes me nervous.”
To complete a sale, builders in most of the U.S. are required to have a certificate of occupancy from local officials attesting the house is finished or at least conforms to building codes. Mortgage lenders usually require the document before closing on a loan.
“I’ve seen some building officials require that a house be completely finished before issuing a certificate of occupancy — even the carpets installed,” said Richard Wildermuth, president of Connecticut Valley Homes in East Lyme, Connecticut. “In other towns, all they require is the house conforms to code — things like installed windows, stair railings, a functional bathroom and a working furnace.”
Builders are snapping up workers to make the deadline. The jobless rate in the construction industry dropped to 20 percent in May from a high of 27 percent in February. The national unemployment rate for May was 9.7 percent, according to the Bureau of Labor Statistics.
The number of people working in residential construction rose to 579,700 in May, up from a 17-year low of 549,800 in February, according to Bureau of Labor Statistics data. That doesn’t include sub-contractors who aren’t on payrolls, such as self-employed plumbers.
New-home sales in March and April were concentrated in houses costing less than $300,000, signaling a rise in first- time buyers seeking the tax credit. The maximum benefit of $8,000 is reserved for people who have never owned property, while current homeowners can qualify for as much as $6,500.
Entry-level houses tend to be smaller and many can be finished in three months or less, compared with five to six months for larger homes, said David Crowe, chief economist of the National Association of Home Builders in Washington. Still, it’s not easy to build a house that quickly, he said.
“Finishing a home in a few months can be done, but the builder would have to work fast,” Crowe said.
In Texas, the LGI Homes crews have it down to a science, according to Lipar. They can complete a home in about 45 days with a crew of 10 to 12 people on site, including framers, drywallers and electricians, he said.
The builder’s entry-level properties cost $110,000 to $170,000 for homes that are 1,100 to 2,500 square feet (102 to 232 square meters), Lipar said. The most popular model is a ranch-style house with three bedrooms, two bathrooms and an attached two-car garage for about $130,000, he said.
The National Association of Realtors asked members of Congress to consider extending the tax credit deadline to allow people more time to complete sales, said Lucien Salvant, head of public affairs for the Chicago-based trade group. Reid, a Nevada Democrat whose state has been among the nation’s worst-hit housing markets, proposed moving the date to Sept. 30.
“The bulk of the delays are coming from people doing short sales, but we’re also seeing people having problems closing on homes they’re having built,” said Salvant. Short sales are transactions in which a bank accepts less than the balance owed on a property.
In California, the federal tax benefit has been eclipsed by a $10,000 state tax credit for real estate purchased between May 1 and the end of the year. The credit applies to people who buy a new home and first-time homebuyers who purchase either a new or existing property.
“We think the California tax credit will be more helpful than the federal,” said Jim Warmington Jr., president and CEO of the Warmington Group, a homebuilder in Costa Mesa, California.
The rest of the U.S. may see a sales slump after the end of the federal credit, said John Burns, chairman of John Burns Real Estate Consulting in Irvine, California.
Permits, a sign of future construction, fell in April by the most since December 2008, the Commerce Department said in a report last month.
“The federal tax credit got people off the fence and pulled a lot of sales forward,” Burns said. “We’re now entering a period where we’ll see the U.S. new-home market trending down.”
To contact the reporter on this story: Kathleen M. Howley in Boston at [email protected]
Welcome to the Warmington Residential Blog! We wanted to have a place where we could publish good news and important updates regarding our companies. We wanted to do so in a way that wasn't too long (but sometimes we have things to say that take more than 140 characters!). We'll hope that you will check back often.