IRVINE, CA—Townhome price points are more reasonable and affordable than single-family detached developments, are often coming in below FHA loan limits and are therefore more appealing to a larger pool of buyers, Mike Hunter, SVP with Land Advisors Organization, which is affiliated with Landmark Capital Advisors, tells GlobeSt.com. Hunter, along with Randy Coe and Allison Rawlins Tift of Land Advisors, a real estate firm specializing in residential land development projects, recently represented the seller of a 71-unit townhome project located near the corner of Von Karman and Alton Pkwy. here. The site is a rare opportunity to build for-sale townhomes within the Irvine Business Complex.
We spoke with Hunter about the transaction and the market for developing townhomes in Orange County.
GlobeSt.com: What is the market like for developing townhomes in Orange County?
Hunter: The townhome market in Orange County is extraordinarily healthy. Price points for townhomes are more reasonable and affordable than single-family detached developments and are often coming in below FHA loan limits. Therefore they are appealing to a larger pool of buyers.
GlobeSt.com: How much land is available for this type of development?
Hunter: The IBC's residential plan limited residential development to 15,000 units, of which 13,000 have been developed as for-rent units. It's up to the City of Irvine to determine how much additional residential development they are willing to allow. However, opportunities such as this one show that the City is willing to work with developers to supply much needed additional for-sale housing to the community.
GlobeSt.com: How does the current attached residential market compare to the historical market in this region?
Hunter: The IBC's for-sale attached residential product is in high demand for its prime location, cultural amenities and multi-technology employers including major players such as Google, Blizzard Entertainment and Edward Life Sciences, all generating robust employment opportunities. However, due to the lack of land available to develop and/or expand new residential projects, the IBC for-sale attached residential market continues to be underserved.
GlobeSt.com: What else should our readers know about this recent transaction?
Hunter: We believe that the for-sale market in the IBC is a great niche for builders because it is so supply constrained. In addition, we see incredible value in the walkability to local retail centers, jobs and services—not to mention the proximity to John Wayne Airport and major freeways. With all the future apartment units coming on the line, the for-sale product here is filling a major need within the IBC housing continuum.
IRVINE, CA—Townhome price points are more reasonable and affordable than single-family detached developments, are often coming in below FHA loan limits and are therefore more appealing to a larger pool of buyers, Mike Hunter, SVP with Land Advisors Organization, which is affiliated with Landmark Capital Advisors, tells GlobeSt.com. Hunter, along with Randy Coe and Allison Rawlins Tift of Land Advisors, a real estate firm specializing in residential land development projects, recently represented the seller of a 71-unit townhome project located near the corner of Von Karman and Alton Pkwy. here. The site is a rare opportunity to build for-sale townhomes within the Irvine Business Complex.
We spoke with Hunter about the transaction and the market for developing townhomes in Orange County.
GlobeSt.com: What is the market like for developing townhomes in Orange County?
Hunter: The townhome market in Orange County is extraordinarily healthy. Price points for townhomes are more reasonable and affordable than single-family detached developments and are often coming in below FHA loan limits. Therefore they are appealing to a larger pool of buyers.
GlobeSt.com: How much land is available for this type of development?
Hunter: The IBC's residential plan limited residential development to 15,000 units, of which 13,000 have been developed as for-rent units. It's up to the City of Irvine to determine how much additional residential development they are willing to allow. However, opportunities such as this one show that the City is willing to work with developers to supply much needed additional for-sale housing to the community.
GlobeSt.com: How does the current attached residential market compare to the historical market in this region?
Hunter: The IBC's for-sale attached residential product is in high demand for its prime location, cultural amenities and multi-technology employers including major players such as
GlobeSt.com: What else should our readers know about this recent transaction?
Hunter: We believe that the for-sale market in the IBC is a great niche for builders because it is so supply constrained. In addition, we see incredible value in the walkability to local retail centers, jobs and services—not to mention the proximity to John Wayne Airport and major freeways. With all the future apartment units coming on the line, the for-sale product here is filling a major need within the IBC housing continuum.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
