As home prices take the largest drop in 35 years, many of the public builders are pulling back and closing some of their local offices. The Commerce Department reported in September the median price for a new home is down 9.7 percent from September 2005. This is the biggest year-over-year decline since 1970.
At a time when many companies are canceling purchase agreements on land, Westmark Property Group, LLC is aggressively pursuing land development opportunities in Southern California. The Carlsbad-based company is managed by two seasoned real estate developers, Mark Rohrlick and Michael Schumacher.
Rohrlick is a 25-year veteran of residential land development with an extensive track record of success. Among other projects, Rohrlick was responsible for planning the developments of large master-planned communities such as Bressi Ranch in Carlsbad, a 600-acre "smart growth" master plan, and The Bridges at Rancho Santa Fe, a private equity golf community.
"The difference for us is that we're entering this receding market without any underperforming projects to drag us down," Rohrlick said. "Many home builders are busy figuring out how to unravel land deals that were made in better times and to manage their debt so that they are positioned for the next up cycle."
Schumacher has a diverse background in commercial office and industrial land development as well as commercial repositioning and historic rehabilitation. Among other projects, he was involved in a major rehabilitation project of 26 historic buildings located at the former Naval Training Center , the Four Seasons Aviara timeshare project and the development of Sorrento South Corporate Center, all located in San Diego.
"Over the last six years, many land sellers watched home builders make a lot of money through the entitlement of land they sold to builders, as a part of the whole building process. Now they are asking themselves how they can share in the upside on perhaps the most valuable part of the process: land entitlement. That's where we can be of help," Schumacher said.
Westmark Property Group forms partnerships with land owners to add value by planning and entitling land. This process can cost millions of dollars and take several years to complete. It typically involves rezoning, amending master plans, extensive planning and negotiating with the various agencies. "What makes us unique is that we bring not only the expertise to perfect the entitlement, but we also contribute the money required to achieve the entitlement," Schumacher said. "We also understand that planning a project correctly has a direct effect on the length of time and marketability that a project can produce."
For land owner Dennis Spahr, his partnership with Westmark proved to be a lucrative endeavor. Spahr owned a 20-acre parcel of land in southern Riverside County and had a purchase offer for the property from a home builder. Instead of taking the offer, Spahr decided to partner with Westmark, which funded the entitlements and rezoned the land, doubling the amount of homes that could be built on the property. After the entitlements were approved, the property was sold to another builder for a significantly increase from the original offer.
"It worked out great for us," Spahr said. "Westmark worked with county staff and the entire community to rezone the property. Then they negotiated the sale with the builder on our collective behalf."
At a time when many companies are canceling purchase agreements on land, Westmark Property Group, LLC is aggressively pursuing land development opportunities in Southern California. The Carlsbad-based company is managed by two seasoned real estate developers, Mark Rohrlick and Michael Schumacher.
Rohrlick is a 25-year veteran of residential land development with an extensive track record of success. Among other projects, Rohrlick was responsible for planning the developments of large master-planned communities such as Bressi Ranch in Carlsbad, a 600-acre "smart growth" master plan, and The Bridges at Rancho Santa Fe, a private equity golf community.
"The difference for us is that we're entering this receding market without any underperforming projects to drag us down," Rohrlick said. "Many home builders are busy figuring out how to unravel land deals that were made in better times and to manage their debt so that they are positioned for the next up cycle."
Schumacher has a diverse background in commercial office and industrial land development as well as commercial repositioning and historic rehabilitation. Among other projects, he was involved in a major rehabilitation project of 26 historic buildings located at the former Naval Training Center , the Four Seasons Aviara timeshare project and the development of Sorrento South Corporate Center, all located in San Diego.
"Over the last six years, many land sellers watched home builders make a lot of money through the entitlement of land they sold to builders, as a part of the whole building process. Now they are asking themselves how they can share in the upside on perhaps the most valuable part of the process: land entitlement. That's where we can be of help," Schumacher said.
Westmark Property Group forms partnerships with land owners to add value by planning and entitling land. This process can cost millions of dollars and take several years to complete. It typically involves rezoning, amending master plans, extensive planning and negotiating with the various agencies. "What makes us unique is that we bring not only the expertise to perfect the entitlement, but we also contribute the money required to achieve the entitlement," Schumacher said. "We also understand that planning a project correctly has a direct effect on the length of time and marketability that a project can produce."
For land owner Dennis Spahr, his partnership with Westmark proved to be a lucrative endeavor. Spahr owned a 20-acre parcel of land in southern Riverside County and had a purchase offer for the property from a home builder. Instead of taking the offer, Spahr decided to partner with Westmark, which funded the entitlements and rezoned the land, doubling the amount of homes that could be built on the property. After the entitlements were approved, the property was sold to another builder for a significantly increase from the original offer.
"It worked out great for us," Spahr said. "Westmark worked with county staff and the entire community to rezone the property. Then they negotiated the sale with the builder on our collective behalf."