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As of right now, I would just assume that the completion of 2015 will be pushed WAAY back - probably looking at another decade in my honest opinion, if at all. It is going to take a lot of completed villages (at least 4 of 6) to begin consideration of the town center. I am in banking and have personally seen the ups and downs of this economy. We are oversaturated right now, it will take time.
However, with a completed community, the discussions could change.
In light of the bankruptcy proceedings, I felt a little compelled to give you my opinion (in english) of what is transpiring, and give you some more information about what is going on in the area.
Bankruptcy
Right now the builders (KB, Toll, Meritage, Pardee, Woodside, Kimball) and the developer (Focus) are members of South Edge, LLC. One side is accusing the other of foul play. Focus contends that they are on the hook for the loan taken to purchase the land, which has come due or is in violation of its terms. They state that homebuilders likely have a "schedule" to buy up the land to make principal and/or interest payments on the loans taken out. Homebuilders argue that with the slow economy they would be fools to buy the land, likely at the prices established before the economy tumbled. Homebuilders are buying finished lots at the moment because it does not cost as much to build on (they don't have to worry about plumbing, electrical and paving roads, etc.). This has already gone to arbitration, with the arbitrator siding with the developer, and this is being appealed by the homebuilders.
As for what could happen, the developer wants an individual trustee assigned to decide who is to buy what. I think that no matter what happens, the design of the community should not change. The City of Henderson has building standards associated with each community designed, and unless substantial waivers are granted, I do not see this changing.
The worst that will probably happen is that obligations of the developer to the various parks and community centers will be passed down to the City, which will then have to budget for future parks, which could take a long while. A similar event happened in Mountain's Edge, where Focus passed the buck to the city, who requested funds from the BLM to start on the large regional park.
Keep a look out for future events regarding the bankrupcty. The sooner the economy turns, the better the community will obviously develop.
The thing to remember is that:
1) Inspirada is KB Home's best selling community in Vegas right now - in 2009 the builder closed on over 100 homes of the 300-400 built in Vegas. 2010 will likely be simliar. KB has a substantial interest in this community, over 40% in all. In my opinion KB cannot afford to lose out on this investment.
2) The amount of finished lots remaining in Inspirada is scarce. KB owns about 100 more vacant lots in the first village, and they are going FAST. Plus, KB purchased finished lots in Kimball Homes area in the second village, which indicates that KB understands it needs to expand. Once all the finished lots are bought, they will need to buy the undeveloped land. KB I believe has ownership to two of the four "pods" in the second village.
Builders
Right now, the builders are Toll and KB. Toll released a new single family series for their master planned communities, which are comparable to KB in price, but their quality is admittedly better. They also have a clubhouse too, so you can't argue with that!
I have seen recent activity with the building of the single family homes as well as their newly designed townhomes. They have about 20 finished lots left to build their single family, and about 8 sets of townhomes left to complete. They will likely finish purchasing the vacant land in the first village to continue Phase II.
KB has nearly sold out all of their townhomes and garden homes, which were the less expensive compared to their village homes. There are, according to my assessor map, about four garden homes left. The last townhomes are being built, and the model townhomes look to be for sale.
There are about 80 village lots left. The builder recently released an "estate" type series and the first set of these lots are all sold out, except for one. KB released a second series after buying Meritage's lots, and are currently selling about 16 more of those.
After all of those units are sold, they will likely start selling new homes in the Kimball Homes former area in Village 2 (not named yet). They bought about 60 lots there.
Other Projects
Recently, ARRA funds from President Obama's recovery plan were used to repave the road leading into Inspirada (Volunteer), which has greatly improved the quality of the road, but it is still only two lanes. The City of Henderson just awarded a contract to Western State Contracting, who did the first project, to widen the road to four lanes, and pave the road from Bicentennial all the way around to volunteer. This is where the Albertsons is at, and where the second village would connect. Funds are from the RTC and City of Henderson. Construction should begin any day now and should be done at year end. It will include a stop light at the airport and volunteer. This is good news, and shows that development is ongoing.
There was also federal land awarded to the City of Henderson right next to Inspirada (with a pretty large buffer zone), to create an industrial district. This is not anticipated to be a semi truck depot-type of development, but more like a Silicon Valley type development. As the City grows, the airport nearby is planned to be a business hub, with high end hotel and industrial buildings set for their convenience. The agreement for the federal land is 25 years, so don't expect this to just happen overnight. For those of you worried, the plan for the development is on the City's website, www.cityofhenderson.com.
Feel free to contact me with any more questions - I will answer them to the best of my ability.
After two months, I think it's time for an update for those "anxious" to know what the hell is up in Inspirada!
Bankruptcy
As some of you might have read in the news, the Bankruptcy judge overseeing this case allowed for a trustee to be appointed in order to resolve the dispute between the homebuilders and the developer. In a best case scenario, it allows for a "third party" to responsibly manage the assets and liabilities held by the owners of South Edge, LLC.
What it means for the general public? Who knows at this point - it is still very early, and the homebuilders have already appealed the decision with the Federal 9th. If it was my guess - I would say the lenders (notably, JP), will want some sort of stake in the LLC in order to recoup some of the massive loss it expects to take. With KB Home as a large owner (around 40%) of this development, expect some sort of agreement to spur further development once all of the finished lots have been built (mid-2012 would be my guess).
Builders: Toll Brothers
Toll recently completed construction on their new townhome model, which is similiar to KB Home, with the exception of a second floor patio that gives pretty good views of the strip. Now, I don't know how that view shapes up when you have another townhome right in front of you, but who knows? What I do know is that interest in these floor plans have been pretty high, with one "pod" of five homes completed, and another pod breaking this past weekend. There are 6 more pods of 34 townhomes remaining in the first phase.
Toll's second new floor plan, which range from 1700-2200 square feet, has become increasingly popular as well, since the prices are comparable to KB, and the quality is a lot better, according to "experts". There are about 14 lots remaining in the first phase.
Looking long term for Toll, it is unclear what their next step will be at this community. Their community is only about 40% complete, and they have not yet purchased the remaining 60% from South Edge for Phase II. Obviously, it's because of the price Toll would have to pay to acquire this land, which would be at 2005-2007 levels. To offset this, Toll purchased 47 lots from Meritage, who left it's interest in the community early 2010. These 47 lots are designed for the village homes currently being built. It is likely that they will begin building here before they purchase any more land in Inspirada - that is unless and agreement or order by the Trustee is enforced.
Builders: KB Home
KB Home, as of my last post, had five different home types: Townhome, Garden, Village, Estate, and Michaelangelo. As of this morning, the townhome, garden, and estate models are completely built out in the first village. This leaves about 27 Village Homes and 15 Michaelangelo homes remaining.
There are, however, 50 homesites that were originally designed as more expensive Villages that are no economically viable at this point. To offset this, KB Home recently submitted new floor plans for these 50 homes - I do not see any Planning Commission items through March, so it may not be until the busy homebuying season that we see these models come to fruition. According to plans, it appears they will be constructing these models where the now-completed garden homes are located.
More importantly, KB is the first homebuilder to move on to the Second Village, which is huge for this community. In my opinion it is showing that development is still ongoing. KB purchased lots from now-bankrupt Kimball Hill. Along with submitting for new Village Homes, KB also submitted plans for new Village and Townhomes in the second village. For those who loved the low cost townhomes, there appears to be about 25 more townhomes that will be available.
Other Stuff
Finally, because of the construction of Bicentennial at the bottom of Village Two, this will provide Inspirada residents with DIRECT access to the Anthem Highlands Shopping Center (Albertsons, PT's, Wells, Bank of America, CVS, etc.) There is a new restaurant/bar under construction, which will be called the Boulevard Bar and Grill, located within the same shopping center. An animal hospital owns the land next to the developing restauarant, but it appears it is being advertised for sale.
Construction on Bicentennial should be completed by Fall 2011. I anticipate that makes Anthem residents extremely pleased.
I will post more updates as the First Village nears closer to completion, probably in mid 2nd quarter. Feel free to PM or message me with any questions - I will do my very best to answer them!
First, Bicentennial will probably never be extended to I-15. The way it is currently designed, Bicentennial will intersect at Via Inspirada (where the proposed town center will be), and then give you the option of turning right to connect to Volunteer, or left to eventually reach Las Vegas Boulevard.
Currently, the project being done will only allow you to eventually connect to Volunteer Blvd, which will still save some time in having to go around Anthem. However, the current maps do not show Via Inspirada going beyond the Inspirada development.
To put Bicentennial's hopes into perspective, an Interchange at Starr isn't projected to begin until 2020, and Bermuda until 2030, which are both before the St. Rose exit, just past South Point. Even connecting Democracy Road at the bottom of Anthem Highlands to the rest of the Inspirada development won't happen until at least 2020, according to transportation records online.
I am very happy that at least the Bicentennial Road will connect Anthem residents directly to Volunteer and Inspirada residents directly to the nearby shopping center. It's a good first step.
I am very happy that at least the Bicentennial Road will connect Anthem residents directly to Volunteer and Inspirada residents directly to the nearby shopping center. It's a good first step.
Hope this helps!
Thanks for the information. I'm happy too that this roadwork is being done.
Time for a 2nd Quarter update regarding the Inspirada community. See my previous posts for prior updates through this thread.
Builders: Toll Brothers
The builder is continuing to see a lot of success with their scaled down models. The homes are probably complimentary to the "garden" type homes that KB Homes used to sell (they sold the last available one in April 2011). One reason I think the homes are selling well is because KB no longer has the smaller floorplans, and the Toll models are competitively priced. Many also regard Toll has producing higher quality homes as well.
The models range from 1,700 - 2,100 square feet and start around $180-$200K. This includes access to their clubhouse, which I don't have much info on, but is exclusive to Toll.
Here's a rundown of inventory left:
Single Family Lots - 6 (Pod 1) 47 (Pod 3)
Toll has made good progress with building their single family homes in the original Phase I of Pod 1. I would expect to see complete build out of the single family homes in this Phase by year end. There is additional land within Pod 1 that could be purchased to develop Phase II, but I doubt this will happen given the current bankruptcy situation. I expect Toll to begin building on the lots they purchased from Meritage homes in Pod three earlier this year.
Condominium Lots - 5 (Pod 1)
Toll recently broke ground on their final condominum units about two months ago. Progress is slow in building the units, mainly since their prices aren't attracting the same buyers as those interested in the single family models. Once these are complete, expect to see these phased out. They are planned to have five or six more in Phase II near the entrance, but they just aren't as popular in 2011 as they might have been in 2007.
Townhome Group Lots - 8 (est. 35-40 lots)
The townhome models, which were revised and unveiled earlier this year, have been getting some traction. The first group of townhomes were completed around March-April, and another is currently under construction. At this rate, there may be one or two more of these townhome groups completed by the end of the year. The floorplans are actually very well done, providing second floor patios to see the Vegas Valley. Since the KB Townhomes are also sold out, price-conscious buyers are looking to these as great options.
Builders: KB Home
KB Home this month unveiled it's new floor plans for the remaining "Village" lots in Village 1. Known as "Van Gogh", these models are designed in a "C" shape, allowing for a side courtyard along with a yard. The square footage ranges that accompany this make it a great choice for those looking for variety, as the homes range from 1,700 to 3,100! They've broken ground on the first two, but its too early to tell what the monthly absorption will be.
Here is a breakdown of lots left:
Village Models: 17 Lots
The original, traditional single family residences. These are currently the main homes that have been selling since the community opened, and they appear to be almost complete. The remaining lots are towards the end of the first Village, with the first Village model in the last area breaking ground earlier this month.
Van Gogh Models: 55 Lots
The biggest difference between these models and the Village models are the lot sizes. The lot size is elongated, which provides bigger large space, and thus the "C" shape model to accompany it. Like I said earlier, this model is brand new, with a builder model home that has JUST been completed in time for the summer rush. We'll know more in my 3rd Quarter update just how popular the model has been.
Michelangelo Models: 11 Lots
These single story estate lots were purchased from Meritage's Pod late last year, and were initially successful. There were a couple of months were there was no activity, but recently development has begun once again. To date, 7 of the twenty lots are built, with 2 currently under construction. It is hard to gauge how well these models are doing, but they are the only single story models available right now in the community ...
Village 2 Update
As I've said in previous posts, KB purchased lots previously owned by Kimball Hill in April 2010. Subsequent agenda items from the City of Henderson showed additional townhomes and "garden" models being submitted for approval - but no action since early 2011. What's the deal?
Several reliable sources tell me that the delay is due to disagreement on improving the road from Village 1 to Village 2. The improvements are technically the responsibility of South Edge, who is the developer under bankruptcy currently. KB Home does not want to pay the money it would take to improve the roads. I personally understand, and feel like there should be an agreement of sorts to compensate KB if they have to pay. These costs are high, especially when you need streetlights, sidewalks, re-paving, etc. When I get more updates regarding this, I'll let you know.
What may ultimately end up happening is the access to the homes in Village 2 will be from Bicentennial, which is being developed as we speak. There isn't as much work that needs to be done from Bicentennial to KB's area. Just means you can't enter Inspirada, you would have to go around! Blah!
Other Stuff
Construction on Bicentennial continues as planned, with most of the road looking paved and ready to drive on. They are starting on Via Inspirada, and should start on the widening of Volunteer/Executive Airport in July.
The Capital Improvement Plan was unveiled to City of Henderson residents on their website - it looks like a stoplight will be constructed at the Inspirada entry way between 2014-2016. Additional lights within Inspirada are planned between 2016-2020. Check out the document for yourself on the City of Henderson website.
A new community manager is now at Inspirada (THANK GOD). No offense to the former, she just didn't engage the community and made money doing that. The new manager(s) are very engaging and provide great resources and events for the community. Well worth my HOA fees.
I'll gladly answer any questions you may have or drop me a PM. I'll provide more updates after the summer months or as needed.
But as if KB knew I was going to update on here, they disclose a possible settlement with lenders regarding Inspirada - see the article below! By the way, this information was from an SEC filing, and is public record.
Sorry for the constant updates, but the recent developments between the Lenders and Homebuilders regarding the vacant land does warrant some additional topics of discussion:
The homebuilders who have agreed to the preliminary agreement are KB Home, Weyerhaeuser (Pardee), Beazer, and Toll Brothers. The lenders, led by JP Morgan Chase also appear to agree in principle. Meritage Homes and the local developer Focus Group have not agreed to the preliminary agreement, though their stake is less than 10% combined, to my understanding.
Each of the agreeing parties will pay for their share of the land, with KB ultimately ending up with a maximum of 68% worth. KB will pay up to $230 million, Toll "undisclosed" amount (I'm told $30-$40 million), and Beazer up to $17 million. The total amount will be around $340 million. The original loan amount by the consortium of lenders was about $550 million.
As a result, all debt obligations and loan guarantees should be relieved and the builders will own the land free and clear.
What does that mean for development at Inspirada? Too early to tell. There are still a few lingering questions out there:
1. Who will now be responsible for public right of way improvements, includes streets and sidewalks? If it now becomes the homebuilder's responsibility, how does to city plan to reimburse from the Local Improvement District Bonds? Does Focus now have to repay those to the homebuilders, even though they do not agree? Too early to tell.
2. The joint venture has an obligation to construct all of the parks as the more homes are built, with the first slated after 2,500 permits have been pulled. With Focus in disagreement with the lenders, who will this fall on? Will there be a revision in the development agreement to postpone these improvements?
3. When will we see the homebuilders break ground besides KB and Toll? My guess is going to be a few years out. KB Home essentially owns all of Village 2 according to the original development drawings and the recent purchase of Kimball Hill's lots. I think it will be a long while before Beazer or Pardee begin their developments.
Stay tuned to this message topic for all updates regarding the Inspirada development.
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Master plan update
