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The Costa Mesa company believes theproductg — single family houses — and its location near Japantown is a good bet. Mark Warmington’s Northern California division president, said the developmen t is a unique one for downtown San which has been constructing towering high This project has a suburban flavor andfeaturews two-story homes, with a small yard and two-car The 2,000-square-foot homes will start in the mid- to high The builder will construct four in the first phase. In downtown San Jose, there have been no single-famil detached homes built in the lastfew years, Rowsom said. Warmington purchased the 10-acre industrial site in Decembet 2008.
Standard Pacific Homes had an option on the land in 2006 at the top the marker and began work onthe project. But Standare walked away when the market soured and creditfbecame unavailable. The property reverted back to the original San Jose Property Investment LLCand DAK, a California general partnership. Warmington bought the land from San Jose Propertgy Investmentand DAK. The compan has an agreement with the original owners to develop the propertyin phases. “This is an extendefd build-out, it’s not a said Matt Tingler, Warmington’s executiver vice president. “We’re very sensitive to oversupply.
” Irvine-baseds Standard Pacific Homes, a major developer of projects inthe hard-hity Central Valley, did not return callsw seeking comment. Tingler would not disclose the purchase but he made it clear the builder is operating as economicallyas “Since approximately 2006 we stopped buyinh land and resolved to sell throughg our existing portfolio of Tingler said. “We have a handful of projects still remaining thatare tough.
But, since we never overextended during the we now have fewer troubled projects to work This most recent acquisition comes at an opportune time for The company has trimmed its portfolio from 30 projects to a number Tingler said Warmington is verycomfortable with. Its determinationm to get lean presents itsown challenges. Now the homebuilder is almosy outof homes. “We sold out of Viridian in San Jose and Vantagd inPalo Alto,” Tingler said. “. We had a ton of producrt that we movedthrough quickly, and we paid back our Now we’re out of product.
” That strategy, is serving Warmington well as it pursues its next line — managinv distressed assets for three Comerica Bank, Guaranty Plus Properties 2 LLC and Bank of Tingler said Warmington started chasing the business 18 months ago — befor the market was ready. Now there’s a lot of although little is located in the core Bay Area market — most is currently in the tertiaru markets in the Central Valley. Warmington competede against other builders for the business that can entaipl everything from securing the propertyt to ensuring there isno vandalism.
“We’rr not acting as a we’re not selling the property for the but we can givea builder’s perspective of what it’es worth,” he said. Warmington is a veteran of such business, Tinglefr said, having performed similar dutiees during the last major housinbg recession in the late 1980s and early The company has agreed to sell more than 600 homees in five markets located in Southernn California and Nevada for TriPacific CapitalAdvisors LLC. Askec whether the work paid well, he said, “From our perspective, any revenuse coming in represents dollars that we wouled nototherwise have.
The goal is to help our financiao partners while at the same time generat revenue to helpcover overhead.” It also keeps Warmingtoh abreast of what’s going on in many markets. Rowson said the South Bay has the greatesy opportunityfor upside. At a seminar therd was talk that said the marketyis close, if not at, the “The Bay Area core market have the greatest potential to solidif y right now over the next six monthsa and then show an uptick,” he said.
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