Homebuilder Lennar snaps up lots in Rancho Cordova
Sacramento Business Journal by Sanford Nax, Staff Writer
Date: Wednesday, December 26, 2012, 7:42am PST
Homebuilders continue to scoop up finished lots as they attempt to meet ramped-up demand driven by low interest rates and households wanting to purchase homes before prices rise too much. Lennar Corp. just bought 98 finished lots in the Anatolia master planned near Kiefer Boulevard and Jaeger Road in Rancho Cordova, according to Land Advisors Organization.
Lennar bought the property from investor Ethan Conrad. The price was not released, but commercial realty agents said it was about $35,000 per lot, or $3.4 million.
Conrad acquired the land in 2007 or 2008 when the real estate market deflated. At the time, the Sacramento investor was picking up lots with the intention of reselling them when the market bounced back — which appears to be now, though some observers wonder if the demand will continue.
“Builders are swarming the region to get hold of anything,” said Jim Radler of Land Advisors. Builders need the land to deliver homes in 2013 and 2014.
Conrad said he sold the lots for more than he paid for them. He has sold three subdivisions in the last four months consisting of 58 lots in Fair Oaks to KB Home, 61 lots in Patterson and the 98 lots in Rancho Cordova. He also is close to selling 79 lots in Folsom, he said.
Sanford Nax covers real estate, planning, development, construction and economic issues for the Sacramento Business Journal.