We have a remarkable value-add opportunity for you to consider in the Villages of Patterson. Located on Olive and North First Street, 18+- acres of land, zoned Medium Density Residential (5-12 units to the acre) and covered by a Development Agreement, is coming on the market. A buyer can achieve a final map and start constructing on the property quickly. The Village of Patterson 18+- acres flyer provides more detail.
As you may know, Patterson continues to enjoy phenomenal growth in the residential new home construction market. The 2021 “California Housing Market Report and Predictions” reported a 22% year-over-year increase in median home prices in the region. Redfin reports that over the past twelve months, the average home price increased 24.4% and the sales activity increased 68.8%.
The increase in home prices is attributed to a confluence of factors including the following:
• Favorable interest rate environment
• Strong job growth
• Easy access to premier commercial areas such as San Francisco, San Jose, Sacramento, & Los Angeles
• Influx of new retail stimulating the local economy and enriching the quality of life.
• New remote work policies encouraging buyers
to explore more affordable markets.
• Good school district attracting families and building community. To take advantage of this market growth, we encourage you to review the aflyer for the available 18+- acres of land located in the Villages of Patterson, a 692-acre Master Planned Community.
Table of Contents
- Executive Summary
- Site Details
- Development Overview
- Market Opportunity & Demographics
- Aerial View
- VOP Approved Projects
- Site Dimensions & Conceptual Lotting Plan
- VOP Master Plan Summary
- Contact Information
Home builder confidence soars; Patterson continues to be an exceptional investment opportunity
● We are offering 18 acres(+-) of approved land, ready for tentative and final maps.
● The parcel is a part of a 692 acre master plan development called the Villages of Patterson (“VOP”).
The opportunity is already proven by major developers’ investments; sales prices continue to grow
● Two major public developers are currently building and seeing significant returns within VOP (K. Hovnanian and KB Homes).
● Absorption rates are greatly exceeding expectations.
● New home sale prices have increased $90,000 to $100,000 per home within 12 months.
● Historic low interest rates are supporting accelerated affordability and sales.
Patterson is a beautiful small town with room to grow & raise a family
● Patterson is one of the most under-penetrated upcoming cities in the Central Valley of California.
● It is located on Interstate 5, a critical link to Interstate 580 and the Bay Area. It is also close to State Highway 99
an important link between the cities of the Central Valley.
City: Patterson, CA
Acres: 18 acres(+-)
Address: 226 Olive Ave, Patterson, CA 95363
Zoning: Medium Density Residential (MDR), 5 to 12 units per acre, Village of Patterson, Master Development Plan
Status: Entitled, covered by a Development Agreement pending Tentative and Final maps.
Valuations: Similar sized VOP property on Olive Avenue, with the same zoning (MDR – 5 12 units per acre) was appraised within the last six months for $300,000 per acre.
Price: Please call for pricing.
Villages of Patterson Overview
● 692-acre Master Planned Community.
● Annexed and entitled for development of 3,100 housing units.
● No other approved development site in or around Patterson.
● New industries in Patterson include Amazon (1 million SF facility), Restoration Hardware (1.5 million SF site), CVS, Kohls, Grainger distribution centers, Traina Foods, and other major employers.
● KB Homes and K. Hovnanian are building and selling 256 single family homes close to this site.
● K. Hovnanian is building an additional 150 homes.
● Self Help Enterprise is building over 200 units of affordable housing within VOP.
● In addition, construction will be under way for 205 single family homes plus 434 multifamily homes consisting of a 125-unit apartment building, triplexes, and duplexes.
● An additional 50 acres are trading paper on other sites in VOP.
● Finished lots are selling for over $100,000 per lot.
Market Opportunity and Demographics
The Patterson Market is Growing Exponentially
● From 2003-2006, Patterson experienced and absorbed a housing boom of approximately 3,200 new homes. Currently, the potential absorption rate for rental units alone is over 1,000 units/year.
● 6.5 million SF of commercial property has been built between 2011-2018. This represents approximately 4,300 new jobs.
● Patterson has enjoyed many new retail services including, Walmart, CVS, and Walgreens, as well as new restaurants, coffee shops, hotels, and banks.
● New building permits have increased 464% from 2019 to 2020, due in part to record low interest rates.
● According to Redfin, Patterson’s average home sales price increased 24.4% in the last 12 months. The sales activity has increased 68.8%. Most homes get multiple offers, often with waived contingencies.
● The recent absorption rate for new home construction is approximately 17 units per month.
Summary of Value Drivers
● Developers say the typical buyer is from the East Bay.
● Bay Area high rents and recent remote work policies are encouraging buyers to explore more affordable markets.
● Over the past 7 years, the local economy has strengthened from an increase of distribution centers from companies such as Amazon, CVS, Restoration Hardware, and Kohl’s.
● The high demand for residential properties is expected to continue into the foreseeable future.
Population Size 22,600 Housing Costs
Median Age 29.1 Median Home Value $399,000
Median Annual Income $65,000 Median Rental Price $1,668/month
Aerial View of VOP North
VOP Approved Projects & 18 Acres(+-) Site
Dimensions of 18 Acres(+-) Site
Conceptual Lotting Plan
Master Plan Summary
● VOP project approved & vested for 3,100 housing units
● 692 acres Master Planned Development
● Flexible low, medium, & village circle density which allows for a variety of housing types
● No competitive projects currently approved in Patterson or the surrounding area
● Two of the three planned schools for VOP are completed
● $67M CFD formation for overall infrastructure and additional school investment is completed
● Patterson maintains its small town atmosphere and family orientated values