We are a Real Estate Investment Firm. Specializing In Commercial and Residential Developments and Acquisitions.
Upper Westside Development Project
By Williams & Brown Properties
(Of New Reign Investment Group)
Downtown Sacramento California
Executive Summary
The Natomas Joint Vision Plan and associated planning efforts for County lands outside of the North Natomas community and northwest of the City of Sacramento have been in process for several decades. This collaborative, complex, multi-agency planning effort first started in the 1990’s as the Northwest Special Planning Area Master Plan, resulting in a Memorandum of Understanding (MOU) between the City of Sacramento and Sacramento County in 2002 to ensure cooperation between the two agencies.
Following approval of the MOU, the Natomas Joint Vision Plan process included four distinct phases: consultants developed key planning principles, property owners provided input, stakeholder groups provided comments, and four planning areas or “precincts” were established. These areas included the North Precinct, the West Precinct, the South Precinct, and the Upper Westside (previously referred to as the Natomas Boot Precinct). The Natomas Joint Vision Plan also proposed a Resource/Conservation buffer west of the Sacramento International Airport, and a portion of the Upper Westside provides an agricultural and open space buffer to the Garden Highway and the Sacramento River.
The County held a workshop on April 22, 2009 to discuss the extensive planning process. Many stakeholder groups were contacted during the community outreach and conceptual planning process. Twelve Guiding Principles were developed to guide future master planning efforts.
On January 13, 2010, the Board of Supervisors initiated proceedings to designate the Natomas Joint Vision area as a Special Planning Area (SPA) within the County’s General Plan.
In November of 2011, the Board of Supervisors approved the 2030 General Plan, which included a planning overlay for the Natomas Joint Vision Plan. The Natomas Joint Vision Plan and overlay is discussed on page 14 of the Sacramento County 2030 General Plan, Land Use Element.
On February 7, 2012, the Board of Supervisors initiated a Master Plan process for a proposal to move the Urban Services Boundary (USB), the Urban Policy Area (UPA), and to consider the General Plan Amendments (GPA), Rezones (RZ), and other land use entitlements, for all four precincts. Unfortunately, landowners within these four precincts differed in their ability to fund the Natomas Joint Vision Plan effort, and the effort stalled.
Project Description
The Upper Westside Plan Area is located within the Natomas Basin, an area where billions of public and private dollars have been invested in public infrastructure in the past several decades. Further thoughtful development in the Natomas Basin will capitalize and build on these significant investments.
The Natomas Joint Vision Plan area is located at the confluence of three major highways (I-5, I-80, and Highway 99/70). Over the past several decades, over
$250 million has been expended on freeway improvements including new
interchanges and roadway widening and/or resurfacing.
The Sacramento Airport expended $650 million in 2011 to add Terminal B and expand runway facilities. The County Airport System has a master plan to spend an additional $1 billion for other airport and runway expansions in the next 10 Years.
Local state and federal agencies have expended over $600 million to improve flood protection for the Natomas Basin. Significant Progress has been made to reach 100-year level of protection, with 200-year protection not far behind.
Sewer interceptors and pump stations have been installed anticipating future growth in the Natomas Joint Vision Plan Area.
Metro Airpark, which was approved 20 years ago, is planned to provide over 20million square feet of industrial, research & development, and office space and over 40,000 jobs (20 MSF/500SF/employee = 40,000 jobs). Within Metro Airpark, Amazon has recently constructed and occupied an 850,000 SF industrial building. Acting as a catalyst, several development applications have been submitted to the County on parcels nearby.
The 577-acre, 3,000-unit Greenbriar project located directly northwest of the I-5 and Hwy 70/88 interchange was approved and annexed into the City of Sacramento in 2008, and the tentative subdivision map was approved in 2017. Commencement of development is anticipated in 2019.
Current Parcel Northern B is 40 Acres Property…
Investor Overview:
A 40 acre parcel of prime land directly off the I-80 freeway that is part of Sacramento’s newest and most prestigious development project. My parcel is on the main street frontage that enters and exits the development – it is a prime key piece to the whole development.
My parcel is designed to have both commercial and residential entitlements and is one of the main key parcels to the entire development.
The executive in charge of this development is Mr. Robert Thomas who is the former City manager for the City of Sacramento – so this development is in extremely good hands. The engineering firm is the well known “Wood Rodgers Engineering” (https://www.woodrodgers.com/) and the land-use law firm they are using is the highly respected “Thomas Law Group” (https://www.thomaslaw.com/).
A large portion of my parcel is on main street and is designed by the developers to be modeled like the prestigious retail shopping district of Santana Row in San Jose (see attached images). The developers are also planning an elaborate shopping experience by using the famous Riverwalk concept in San Antonio TX and the Bricktown Canal concept in Oklahoma City (where there is a beautiful water canal in the shopping area with small boats to take you throughout the shopping district) – see attached images.
This exciting development is destined to be the most premier landmark development in Sacramento and will set a new high standard and benchmark for the entire Sacramento region and potentially for all of northern California.
HERE’S THE KEY POINTS:
+ Entitled land near me is currently selling for $1.0 million per acre.
+ We are currently in Phase 3 (of the 4 phase entitlement process).
+ The entitlement process is moving swiftly – The N.O.P. was completed October 5, 2020 to November 6, 2020 according to discussions with the County of Sacramento.
+ Based on current entitled prices, value for my parcel once the entitlements are complete could be potentially about $1.0 million per acre (about $40 mil for the 40 acre parcel)
(Before-After 24 month land value)
Current Land Value - $430k-650k per acre (parcel)
Future Land Value after entitlements - $750k-1.5M per acre
EXIT STRATEGIES
Profit Share: If we were to sell all acres after entitlement process
Parcel selling point $1.0M + per acre
40 Parcel times $1.0M is $40,000,000
After paying back all debt we will Profit $25,000,000 may be more..
Profit Share: If we were to sell 20 acres & develop 20 acres
Parcel selling point $1.0M+ per acre
20 Parcel times $1.0M is $20,000,000
After paying back all debt we will Profit $4,000,000 from Land Sale.
Debt Servicing
Land Cost/Value:$430k-450k per parcel - Total Value: $17,200,000-$18,000,000
Construction Cost: $65,000,000-$70,000,000 (20 acre WB development ONLY)
Interest: $N/A
Promotion/Advertising Cost: $25,000
Upfront Advertising Cost: $5,000
Solar Panel Cost: $10,000-$15,000 per house or unit
Water Filtration Cost:$7,000-$10,000 per house
Legal Cost: $45,000 over 2 Years
4 LLC Cost: $2500
Asset Management Fee: $100,000
Construction Options:
200 Room Hotel construction cost: 12M
120 Room Hotel construction cost: 9M
320 unit Multi Family construction cost: 9M Med/High Density Residential
222 unit Multi Family construction cost: 7M High Density Residential
40-60 Retail Store construction cost: 25k-100k (Total: 1M-6M)
100 Townhouseconstruction cost: 200k-300k per home (Total 20M-30M @ sale)
20-30 Land Leases at $30,000-$50,000 per acre
Profit Margins: (All Options)
$780k-1.5M per acre (sales price)
Sell 20 acres at market value after entitlement process is complete
320 unit $384,000 Monthly - GROSS $4,608,000 - NOI $2,304,000
200 Room Hotel $420,000 Monthly - GROSS 5,040,000 - NOI 3,024,000
CURRENT STATUS:
As of July 27, 2020
NOTE: We Williams & Brown Properties Division of (New Reign Team) will take on the bulk of debt / Responsibility initial funding for project and influence leveraging. New Reign will provide building and construction funding and strategy if we want to to build on pieces of land. Partners will bring other unique exit strategies to maximize profits. Our partners and I feel like this is going to be a wonderful and very profitable relationship and partnership for years to come. We thank you again for working with us on this project as well as the other project we are currently closing. We are happy and excited to be doing business with you. 😊😊
