RE:RE:RE:RE:RE:RE:RE:KHOV Lot Prices >> Sage RanchJust to add a little context to FloatsnJets valuation for Sage building lots, which by the way sounds very reminiscent to lot valuations Jeff gave investors many years ago as being $100,000-$150,000 per lot.
In reality here is a fully approved, shovel ready (96) townhome development that has been listed for two months now.
Listing price is $1.375M or
$14,323 per unit https://www.redfin.com/CA/Tehachapi/Applewood-Dr-93561/home/192088525 These are "paper lots", as are the same lots of Sage Ranch. They are entitled but not yet graded or permitted for home building. As KHovanian moves into less developed zones of the development they have main roads and infrastructure installed but they will need to buildout the courts and cul de sacs. These sections are classed as "blue tops" and have been graded and likely have their "street gut" subgrade prepared for the final utility installs.
This leaves 45% or so of Sage Ranch at approx. $14,000 - $15,000 per unit. It is comparative because there has been no water rights currently allocated directly to either housing development. i.e. turned over to the City.
This is also the reason why VOYA would be providing only a portion of the $40M financing. Just like a mortgage the lender is only going provide the monies based on what they could recover if the project needed to be sold. Once VOYA provides the financing they will be the ones in control of the asset as collateral.