Acquired 4,850 acres for $19.5mm ($4,020/acre) within the Otay Ranch Master Plan in Chula Vista, California in 1998. Accretive’s principals sold roughly 1,969 acres for a cumulative $32.6mm ($16.650/acre) and a $26.1mm profit within three years of acquisition. In addition, Accretive’s principals had prepared and submitted an application to the City of Chula Vista to double the density of the entitlements on the remaining land. The application contained a Peter Calthorpe designed new urbanist land plan for 6,000 units primarily within two town center anchored master planned communities. This application was the basis for a Land Offer Agreement entered into with the City of Chula Vista.
Value Added Actions:
- Perfected Land Value:
- Redesigned a portion of the property referred to as Proctor Valley to address concerns of the local community and environmentalists and gained their support for the Tentative Map submittal o the County of San Diego. At the same time we were in discussions with Federal and State wildlife agencies on selling this property which we ultimately succeeded in doing.
- Identified the opportunity to redesign the southern portion of the Otay Valley portion of the Otay Ranch Master Plan and updated the plan to meet current new urbanist land planning principles. Refined the amended plan to satisfy the objectives of the City of Chula Vista and submitted a general plan amendment application. The expected approval of this plan could more than double the value of this property.
- Enforced the environmental provisions of the Otay Ranch Master Plan which required adjoining developers within the plan to acquire excess mitigation land from the Otay Land Company at four times the price they had previously paid.
- Negotiated agreements to reduce impacts of encumbrances.
- Participated in Otay Ranch Public Infrastructure Financing Plan preparation and approval of Otay Ranch’s incorporation into the Multiple Species Conservation Plan.
- Participated in Chula Vista’s preparation of a “Green” building standard.