Business plan: complete master site plan approvals (Addendum to EIR, revised Specific Plan and specific site plan approvals for the Phase I buildings) over a 12 month period and prepare to close with the land seller in first quarter 2016. The projected development budget of $85M felt a bit large for our private partnership so we began marketing the site for sale in third quarter 2015.
We selected First Industrial as the Buyer for the entire 97 acres with the understanding that they would re-convey 26 acres of Residual Land (entitled for retail/commercial, business park and other ancillary uses) back to our partnership following recordation of a final parcel map. Our partnership recovered 70% of its invested capital at land closing and has a negligible land basis on the Residual Land.
- Description of real estate: 97 gross acres of vacant land
- Date of land venture formation: January 2015
- Venture entitlement/deposit budget: $4,300,000
- Date sold: February 2016
- Buyer: First Industrial
- Sale price for 50 net acres: $22,750,000 ($10.44 psf)
- Estimated improvement costs: $15,000,000
- Estimated finished basis: 50 net acres ($17.33 psf)
- Site plan: Six (6) buildings totaling 936,000 s.f.
- Individual building sizes: 50,000 to 300,000 s.f.