I have been asked to review a number of properties that are essentially raw land that has been graded and prepared for the development of tract homes. This has been going on essentially since November and December of 2008 when I posted the article about DR Horton selling off a number of their properties a near fire sale prices. Link to Story
It appears as though these properties, predominantly in the outskirts of the populated areas of Southern California, are changing hands quite rapidly. While very little actual construction appears to be taking place right now, when the residential market returns to, “Normal” I would expect the people who hold this property will be able to reap tremendous rewards.
The environmental concerns of these properties are usually few since the larger properties tend to be on raw land, but we have come across a few that are on properties that were formally industrial properties or abandoned oil fields of some sort. These properties have additional requirements prior to development that many times makes the deal go sour because the purchase price is so low and there is no short-term return on investment to pay the costs of remediation.