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.
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During escrow, renegotiated the purchase contract to provide approximately 10% of purchase price to offset entitlement risks and completed nearly 90% of civil engineering.
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Due Diligence Research: Primary market research conducted by the development team indicated that modern architecture would garner an additional $200K per home.
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Entitlements:
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Mitigated 100 year flood and drainage issues by bonding for off-site improvements.
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Managed offsite improvements to mitigate 100 year flood issues.
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Negotiated an agreement over easements with local Indians and adjacent property owners.
Final Map and Plan:
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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.
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3 modular floorplans ranging from 2,700 sf to 4,700 sf.
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Price points from $1.53 to $3.5 M.
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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).
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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.
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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:
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"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
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Best Single Family Detached Home - 3,500 to 4,500 sf
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"Best Development of the Year" Runner Up (Merit Award)
Sales:
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By March, 2005:
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We were able to secure 40 reservations.
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We obtained DRE White Report allowing us to close escrows.
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We implemented a two part closing process in which the Buyer paid for carrying costs advancing cash flows and minimizing market timing risk.
2006:
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We closed X sales
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Plan C Model Home sells for $3.4 million in 2006