Residual land value / NavajojoeNavajojoe, you are absolutely right i.m.o. that bare land isn't worth anywhere near US$150,000 in Tehachapi (for somewhat comparable lot sizes).
However, the 'residual land value' for Sage Ranch was calculated by Altus at US$124,719,669 in their 'Summary of project returns' table. That equites to around US$125,000 per lot.
Residual land value is a commercial real estate metric that estimates the valuation of raw land based on the planned improvements for it'.
The lots you're pointing to in Tehachapi seem to be also raw land but without most of those improvements included. Hence their much lower prices.
Most of them are indeed just bare land located in desert area near the city with no paved roads. Some of them seem to have access to water though. Some of them also seems to be part of some development project but their entitlement statuses are unknown to me.
You quoted:
"I am not convinced that bare land in Sage is worth $150,000+/lot. Considering the cost of water, sewer, power, and roads, that would push the lot prices into the stratosphere, IMO."
I hope we can now agree that the residual land value is the better metric for the Sage Ranch land rather than some other 'dirt land' prices in the neighbourhood :)