What if Bren did not buy the Irvine Company?

NEW -> Contingent Buyer Assistance Program
Irvine wasn't a municipality until the early 70s. So it was a relatively easy transition to having a corporation run it instead of a family.



Take out the more bizarre elements, and it would be similar to San Jose in recent history, though a little less educated and tech-based. The idea that it would be some anarchic cesspool without the Dear Leader is a little off. SoCal is a very attractive place naturally (though we try hard to ruin it).
 
[quote author="Hormiguero" date=1226378090][quote author="IrvineRenter" date=1226374602] That is hard construction costs of the structure itself. That does not include fees, land or land improvements.</blockquote>


And it also seems to assume a certain economy of scale - I can't imagine a new individual SFR on a tear-down lot having much lower costs than $220/sqft all-in.</blockquote>
I work on the commercial construction lending side and generally soft costs of construction (A&E, permits, closing, commissions, etc) usally run about $20-$25/sqft and financing costs (interest reserve and loan fees) run about $10-$12/sqft. These could be a little lower for residential construction projects.
 
[quote author="usctrojanman29" date=1226452211][quote author="Hormiguero" date=1226378090][quote author="IrvineRenter" date=1226374602] That is hard construction costs of the structure itself. That does not include fees, land or land improvements.</blockquote>


And it also seems to assume a certain economy of scale - I can't imagine a new individual SFR on a tear-down lot having much lower costs than $220/sqft all-in.</blockquote>
I work on the commercial construction lending side and generally soft costs of construction (A&E, permits, closing, commissions, etc) usally run about $20-$25/sqft and financing costs (interest reserve and loan fees) run about $10-$12/sqft. These could be a little lower for residential construction projects.</blockquote>


So what are the hard costs running currently on building retail?
 
[quote author="tenmagnet" date=1226452739][quote author="usctrojanman29" date=1226452211][quote author="Hormiguero" date=1226378090][quote author="IrvineRenter" date=1226374602] That is hard construction costs of the structure itself. That does not include fees, land or land improvements.</blockquote>


And it also seems to assume a certain economy of scale - I can't imagine a new individual SFR on a tear-down lot having much lower costs than $220/sqft all-in.</blockquote>
I work on the commercial construction lending side and generally soft costs of construction (A&E, permits, closing, commissions, etc) usally run about $20-$25/sqft and financing costs (interest reserve and loan fees) run about $10-$12/sqft. These could be a little lower for residential construction projects.</blockquote>


So what are the hard costs running currently on building retail?</blockquote>
Well, I have a small retail construction loan (29,000 sqft in Fontana) that will be funded in Dec where the GC's cost for the building shell is about $70/sqft for vanilla shell (down from $85-$95 last year at this time), the sitework is about $35/sqft, and tenant improvements are about $20/sqft.
 
[quote author="usctrojanman29" date=1226457991][quote author="tenmagnet" date=1226452739][quote author="usctrojanman29" date=1226452211][quote author="Hormiguero" date=1226378090][quote author="IrvineRenter" date=1226374602] That is hard construction costs of the structure itself. That does not include fees, land or land improvements.</blockquote>


And it also seems to assume a certain economy of scale - I can't imagine a new individual SFR on a tear-down lot having much lower costs than $220/sqft all-in.</blockquote>
I work on the commercial construction lending side and generally soft costs of construction (A&E, permits, closing, commissions, etc) usally run about $20-$25/sqft and financing costs (interest reserve and loan fees) run about $10-$12/sqft. These could be a little lower for residential construction projects.</blockquote>


So what are the hard costs running currently on building retail?</blockquote>
Well, I have a small retail construction loan (29,000 sqft in Fontana) that will be funded in Dec where the GC's cost for the building shell is about $70/sqft for vanilla shell (down from $85-$95 last year at this time), the sitework is about $35/sqft, and tenant improvements are about $20/sqft.</blockquote>


Appreciate the response and info.

Costs have come down quite a bit.

Last year, building alone was running close to $100/sq.ft.
 
[quote author="IrvineRenter" date=1226148518]I sense your surprise over their decision not to build more aggressively over the last 2 years. I don't think there is any real reason other than they simply want to get peak prices for their land. They already command a premium in Irvine, and they probably always will. It isn't the 100% premium they desire, but it is a 25% premium over surrounding communities. I believe they were simply being greedy and stupid not to build more over the last two years.</blockquote>
It's also possible that they were as observant as you were two years ago and decided not to fill Irvine with what would eventually be REO houses. Imagine what would happen to TIC's reputation if half the new developments looked like other areas that are mostly foreclosures.
 
[quote author="Oscar" date=1226460171][quote author="IrvineRenter" date=1226148518]I sense your surprise over their decision not to build more aggressively over the last 2 years. I don't think there is any real reason other than they simply want to get peak prices for their land. They already command a premium in Irvine, and they probably always will. It isn't the 100% premium they desire, but it is a 25% premium over surrounding communities. I believe they were simply being greedy and stupid not to build more over the last two years.</blockquote>
It's also possible that they were as observant as you were two years ago and decided not to fill Irvine with what would eventually be REO houses. Imagine what would happen to TIC's reputation if half the new developments looked like other areas that are mostly foreclosures.</blockquote>


That is an interesting thought. I wonder what they will do, if anything, when the neighborhoods they built in 2003-2006 are littered with REO houses. It is coming.
 
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