why we love path of progress and long term vision

Jay HinrichsPoster

Professional Services

Pro Member

#3 All Forums Contributor

Lender
Lake Oswego OR Summerlin, NV

Posted August 30, 2019 18:17

Investment Info:

Other other investment in Rohnert Park.

Purchase price: $27,000
Cash invested: $27,000

just under 4 acres of land in the path of progress.. when we bought it .. the land was unbuildable because of Sonoma county very strict septic system rules. And it was zoned residental.. however it was on a free way off ramp access road.. and they had just built a shopping center one block over with a Home Depot Anchor.

Then about 15 years ago One of the Vegas gambling concerns was able to lobby a local tribe and the property across the street was sold in what was and may still be the highest priced real estate transaction in Sonoma county at 230 million.. Now battle royal ensued for a decade to get the Casino approved.. and it finally was and was built.. its the largest Indian casino in Northern CA and its within 1 hour of the North Bay and SF and of course in the Sonoma Wine country.

The city seeing this decided to create a specific plan and annex in a fairly large swath of land of which our land was included. So we came with a zoning of Mixed use Residental / commercial..

For the last 2.5 years we have had it on the market at 3 mil.. And two offers in the mid 2s that failed.. However we just accpeted an Offer of 1.9 and this offer looks strong they know the issue and its still a long term play.. this company is in the process of doing a land assemblage which we are not a key property but well located.

So if we can get to the closing table in December that will be a nice 27k cash investment that we have done nothing more than mow weeds once a year and pay 300 .00 a year in tax's ( prop 13 ). We will 1031 as our entire gain is taxable with only a 27k basis.

What made you interested in investing in this type of deal?

We like land banking

How did you find this deal and how did you negotiate it?

my real estate broker

How did you finance this deal?

Cash

How did you add value to the deal?

Waiting city grew to us.

What was the outcome?

still to be determined but hope to cash out in December

Lessons learned? Challenges?

buy in the path of progress,