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ALTA

PALM SPRINGS

1/3
 

Acquisition: In May 2004, the principals of ARTES acquired raw 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, 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 garner an additional $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