Run Date: September 12, 2011

EMC Creative is many things to many people. It’s an advertising agency, a strategic marketing consultant, a business guide, a branding expert and a social media resource. That’s for starters. EMC is where companies turn when they need help shaping and delivering a commercial or corporate message, connecting with the appropriate audiences, and understanding the consumer side of the equation.

Colleen Edwards, president, is the face and the force of EMC, bringing more than 30 years of business background to the table, and hers is wide and varied experience. Edwards is endlessly curious and endlessly inventive with what she learns.

A Company Long on Consumer Insights

“Clients often ask what I think is relevant, what’s next, how things will change,” she says. “They want to know what I can synthesize from 30 years in marketing, and use it as the basis for forecasting.” Those aren’t unreasonable questions— not when you consider that EMC Creative has been a thought-leader in Northern California business since 1980. Over the years, that kind of cumulative knowledge represents a vault of information. And yet, some of EMC’s most salient data are very fresh. Edwards says that business has undergone a game-changing transformation in the past few years.

“The advent of social media has changed things,” she says. “Everything.” While clients may be looking for someone to foretell the future, they’re also looking for someone to put the present in context—and make the most of it.

Still, EMC did start out focusing on real estate. “We were lucky enough to ride California’s economic wave for the past 30 years,” Edwards says. Whatever the mix of fortune and foresight, it led the company to work on projects as difficult as base conversions and Superfund sites—but also historic properties, downtown redevelopment, waterfront sites, and more. And it doesn’t stop there. Edwards offers a blog and podcast—“The Real Story”—that delves into real estate from today’s news to tomorrow’s possibilities.

A Company Strong on Creativity

At EMC, creativity isn’t simply developing an ad, or even a campaign. “My clients need more than art services. They need smart services,” Edwards says. “They need to know how to rethink the marketing equation, and they need to know where their dollars should be allocated.” They also need to have a true view of what’s going on in their marketplace.

“We talk about how the consumer sees the client and the client’s product,” Edwards says. “This can be very different from what the client has believed. And this understanding is a tremendously valuable business tool.” Solar energy and sustainability. Health care. Banking. Placemaking. The creation of Citizenship 2.0. Exciting new uses of communications channels. This is EMC’s blend of clients and interests. “I think an intellectual quest has led us into these areas,” Edwards says.

What does EMC stand for? It grew from the way clients referred to the company’s original name, Edwards and McCaslin, but, Edwards says, “It’s really about making today count and planning for tomorrow. EMC means Every Moment Counts.”

Run Date: November 1, 2010

By BoNhia Lee
The Fresno Bee

Recession-wracked subdivision to get a fresh start

Four partially built houses that have sat empty in a Clovis subdivision for more than two years were torn down Monday in the first step toward reviving the bankrupt development.

The first house in the Patriot Homes subdivision, on the southwest corner of Locan and Shaw avenues, came down just after 8 a.m. with the sounds of crunching wood and breaking glass echoing through the neighborhood.

“Those houses are beyond the state of repair,” Clovis Mayor Harry Armstrong said.

The subdivision went into bankruptcy this year with 57 lots remaining, some with homes partially built on them and others nearly ready to be occupied.

The partially built homes were abandoned with just the wooden frames and some windows installed. They quickly became an eyesore in the neighborhood and a constant reminder of the challenges builders faced in the unstable real estate market.

But the new owner, Union Community Partners LLC, an investment group in San Jose, plans to bring life back into the subdivision, which has two tracts and about 120 lots total.

Within the next two weeks, the group will begin construction to finish 10 homes started by the previous builder. The empty lots remaining will be sold to a local builder by next year.

Dustin Bogue, president of UCP, called the tear-down a “positive change” as a result of collaboration with homeowners and city officials.

Michael Prandini, president of the Building Industry Association of Fresno and Madera counties, said he has not heard of any other investors picking up abandoned subdivisions in the Fresno area.

But it’s not unusual for an investor to buy a stalled development with plans to build it out or sell it later, Prandini said.

“In these tough times when these builders are losing their subdivisions, it’s likely that an investment firm will come in or a developer will buy the lots at a distressed price and be able to sell them and make money,” Prandini said.

Homeowners in the Patriot Homes neighborhood just want to see the subdivision finished.

Vern Dillon, who can see the abandoned homes from his backyard, and neighbor Baljit Singh said security has been an issue because a security wall that was supposed to be built along Shaw Avenue never was finished.

The abandoned homes also were popular hangouts for teenagers with paintball guns and for the homeless looking for a place to stay.

“They should be demolished because they were in a condition that you can’t live in,” Singh said.

Homeowner Zovig Barsamian said the neighborhood will look better once the abandoned homes are gone.

“It’s a nice area here, and it’s a shame to be this way,” Barsamian said as she walked her dog past the demolition. “We’re happy someone came forth to do this improvement.”

Run Date: September 24, 2010

FACEBOOK, TWITTER, e-mail. Social media is all around, enabling us to stay in touch “real time” with friends, family and our online and offline communities. It’s how we connect in the 21st century and now it’s helping those who work and live in Pleasanton to “Shop Around Pleasanton.”

This week, the city launched the Shop Around Pleasanton page on Facebook. It is designed to bring up-to-the-minute news on bargains, products and events directly to your Facebook page and, ultimately, into your e-mail inbox.

The site was designed by the 18-member Economic Vitality Committee, whose charge is to implement the city’s economic strategic plan.

“Two of the goals of the strategic plan are to maintain and expand Pleasanton’s economy and maintain the city’s retail and entertainment” business, said Pamela Ott, the city’s economic development director. Part of the strategic plan is a shop local campaign—traditionally, that would include coupons, passports, gift certificates, discount opportunities and special events. Ott says the committee immediately recognized the value of such a campaign but took 18 months to put together an expanded version.

Shop local campaigns drive consumers to spend money in target areas. “From our research, for every dollar spent here, 45 cents stays in the community,” Ott said. “That money helps pay for parks, programs and other community amenities.” Using a social media campaign was not only cutting edge, but fiscally responsible, she said. “We used a Facebook platform so anyone who is a consumer in town has access to deals, specials, events—whatever merchants want to share.” It will include real-time product notifications, events and savings opportunities for those who work or live in Pleasanton, from all the retailers who operate within city limits.

In its first 24 hours, and two weeks before the official launch, the site had 100 fans. Following the official launch early this week, the site had 300 fans. The site has opened with a contest asking consumers to upload photos of their favorite shopping location in town and to include a status update that says why they like shopping there. The post with the most “likes” wins a $1,000 gift card good at retailers throughout Pleasanton. The contest ends Nov. 18.

The Shop Talk area of the site is starting to fill up with merchants who register for free, and can post deals, special merchandise, events and sales. Consumers can sign up for e-mail “shop alerts,” where merchant information is e-mailed to them every two weeks. Merchants can also use the Twitter application to share information with consumers.

Employees of the Golden Apple Learning Store, located on Hopyard Road in the Gateway Shopping Center near Chili’s, are all atwitter with their first Twitter experience. “I put something on Twitter last week about a product we have called ‘Architecto,’ and we had someone come in 45 minutes later and said they’d heard about it on Twitter,” said Golden Apple buyer Nancy Halseth, a 30-year resident of Pleasanton.

Like many merchants, Golden Apple will feature events and new products on the site. With so many types of shopping experiences in Pleasanton, with Shop Around Pleasanton it’s good to know people can shop around town through this citywide campaign. Go to www.facebook.com/shoparoundpleasanton to find out more.

You can contact Susan Hayes at aroundpleas@aol.com.

Run Date: September 20, 2010

KTSF San Francisco

Armstrong Townhomes hosts the first-ever “3rd Street New Home Stroll” in San Francisco’s bustling Bayview District.

Run Date: September 4, 2010

By Linnea Smith Jessup
Special Sections—Contra Costa Times

Today’s homes are built with more than solid materials, better insulation and modern construction practices. In the Trilogy at the Vineyards in Brentwood, more than 300 hours of focus group input was put into the mix as the design process began for this innovative active adult community development.

And that dialogue continues. With the recent opening of Club Los Maganos, an event center and gathering place, residents are actively participating in a variety of groups and special interest events that continue the dialog of what else can be added to make this community even more pleasing to them.

Listening carefully is Dan O’Brien, area president for Northern California for Shea Homes. Since taking that position with Shea more than five years ago, O’Brien has enthusiastically worked with designers, construction staff and support staff. In fact, he is a resident of Trilogy at the Vineyards along with his wife Kathy.

“When we buy a property,” he said of Shea Homes, “we don’t have a plan until we’ve held focus groups and learn from them.” Ground breaking began in 2005.

In the case of this development, there were several “a-ha” moments, according to O’Brien. These included dialogue that led to the realization that home plans needed to be flexible in many ways—offering space for offices, dens or libraries, sometimes even two offices in a home. Even the laundry room can be reconfigured, for example, to accommodate a particular hobby. Courtyards are an option in several of the model plans, and square footage in the single-story homes ranges from 1,719 to 2,853. Buyers can select a model and any customization at purchase and then the home is built specifically for them.

“These homes focus on the boomers, the empty-nesters,” he says, as well as “The big four”—a fabulous kitchen, large family room, luxurious master suite and a good office. Not every plan has a formal dining room, because that’s not important to many boomers. The secondary bedrooms may not be so big because they’re not used very often, or the resident might want a larger space for an office.

But the homes are only one aspect of the development. Enthusiastically noting that the community has three important pillars—mind, body and heart—the facilities were designed to encourage social interaction, education, exploration and fitness. Currently there are groups who enjoy discussing or participating in literature, theater, sports from walking to heli skiing. “Travel is major—they all want to do this—and we have a concierge who can help with local travel plans, group events and other services. There’s a wine making club (O’Brien is a member) and there are community service activities including “Travel with a purpose trips” where participants pitch in at a destination by helping with housing, clean-up or other support. There are also plantings of vines which are tended and harvested by the resident wine club.

The new Clubhouse at Los Maganos has lounge areas, a café/bar, demonstration kitchen with herb garden, a large ballroom and outdoor terrace plus lawn, a library, a game room with a pool table (soon), bocce court, resort-like pool and deck area complete with cabanas and infinity edge. And the views of Mt. Diablo and open space are dramatic. These are all spaces where residents can entertain family and friends, eliminating the need for large indoor and outdoor spaces within their own homes. The health club and spa offers tai chi, yoga, spinning, Pilates, water exercise (there’s an indoor pool), exercise equipment and full spa services. New members, as residents are called at Trilogy, can meet with a health professional who evaluates them and provides a thorough consultation and recommended fitness routine.

The socialization aspect is immediately observed in the clubhouse, where all residents come to pick up their mail, make arrangements for an upcoming event or stop by for a coffee or a game with friends. The spaces also pay homage to John Marsh and his family, early settlers and ranchers on this property. There are portraits of both John and his family, and much of the Sawa Spa’s theme reflects the ways of the Bay Miwok people who also lived in the area. Herbal treatments and services have Miwok names and use natural herbs and plants, for example.

As president of Shea in Northern California, closely overseeing the Trilogy at the Vineyards community, and as a resident, O’Brien is an enthusiastic promoter of the facilities and the lifestyle it supports. As a resident, he is equally engaged in the lifestyle and community.

He grew up in the Midwest, graduated from the University of Wisconsin in Madison with an accounting degree and enjoyed playing guitar, keyboards and drums. He arrived in California just a few years ago and quickly adopted the mindsets that include being environmentally responsible as well as enjoying the many geographic pleasures of the Golden State, from horseback riding along the beach to bicycling the San Francisco Bay with his granddaughters and their parents. He’s still known to belt out a Beatles tune or two but admits he hasn’t had much time for his electric guitar in recent years.

Asked what he might cook at Abby’s Cooking Studio, he described a recent “experiment” that shows both Midwest roots and California flavors—fresh herb crusted lamb chops with wild mushroom merlot sauce, asparagus accompanied by garlic and gorgonzola cheese mashed potatoes with s rosemary spear. “I made it up as I went along; that’s when the fun begins,” he explained.

John Marsh, the first American citizen to settle in Contra Costa, purchased the surrounding land in 1837 and with his wife Marguerite established a ranch; he also practiced medicine. In 1856, at the time of Marsh’s death, the Marsh home here was considered among “the finest ranch home in California.”

When asked about any vision or wisdom he has gained through learning about Marsh, O’Brien remarked on the early settler’s brilliance as well as “an entrepreneur spirit.” He continued, “We have drawn from that spirit to pioneer our most architecturally inspired product in (Shea’s) 125-year history I think John Marsh is smiling, nodding and thinking we have done him proud.”

The developer president, resident and HOA president is proud of his staff, his development and the friendships he and his wife have forged here. There’s a lot of responsibility, but clearly a lot of pleasure in his current work and lifestyle. He says he once explained to a member, “If I am holding a glass of wine, I’m a resident; if I am holding a bottle of water, I’m working; if I am holding a bowling ball, I am dangerous.”

As members of Trilogy, O’Brien said, “Our members love life and I relate to them; it was an easy choice for Kathy and I” of their residency in the development that will eventually have about 1,100 homes.

For more information, contact Dan O’Brien at 925-809-7101, TrilogyLife.com. Trilogy at the Vineyards is located at 1988 Sacred Mountain Lane in Brentwood.

Run Date: August 22, 2010

San Jose Mercury News

Art Wong felt right at home within minutes of strolling into downtown San Carlos in the fall of 2009. The longtime Los Altos Hills resident had just visited 1001 Laurel, a recently-opened 90-unit condominium project that anchors a portion of Laurel Street, the city’s primary downtown destination.

“I liked all the activity and ambience —people shopping, dining, lots of lively conversation, folks simply enjoying themselves. It was a great atmosphere, with a variety of age groups. I thought ‘this is the place for me.’”

John Baer, Senior Vice President of Development for The Matteson Companies, developer of 1001 Laurel, understands Wong’s enthusiasm for downtown San Carlos. “Our residents enjoy being close to everything that the open air downtown district has to offer—there’s a wide array of dining, shopping and entertainment choices here, all within an easy stroll of 1001 Laurel.”

Wong, a retired high tech manufacturing executive, had been looking to downsize from his expansive mid-Peninsula home in Los Altos Hills. Working with the 1001 Laurel sales team, Wong saw a 1 bedroom/1 bath third floor corner unit adjacent to a 2 bedroom/2 bath residence, both unsold at the time.

Could he combine the two units into one? asked Wong. Yes, said the developer. Soon afterward, Wong signed a contract to purchase not one, but two, condominiums at 1001 Laurel.

With the green light from the developer, Wong set to work assembling a team of architects, designers, decorators and contractors that would handle the unusual—and challenging—transition project.

Fortunately, Wong had engaged all of his team at one time or another in projects at his former Los Altos Hills home. “The main thing is that I trust each and every one of these people, and they bring a wealth of creative talent to everything they do,” said Wong proudly. “For this particular project, I had an idea of what I wanted. But just as importantly, I had a keen sense of what the potential hurdles were. That’s where communication with your team becomes so important.”
With quite a bit of advance design and preparation work, Wong’s team was able to bring the two residences together via a hallway that originally spanned the two-bedroom residence but had previously ended at a bedroom wall of the two-bedroom residence.

Sherry Scott of architectural firm Cristiani Johnson, the San Francisco-based company that designed 1001 Laurel, worked closely with Wong on the intricate redesign of the two residences. “Art is an excellent communicator which truly helps in keeping the project moving forward. He was always very open to our ideas and suggestions, enabling this to be a very collaborative effort.”

“The very real challenge that we faced was the fact that we had significant construction activity underway below a fourth floor unit, above a second floor residence and very near the condominium that abuts Art’s two bedroom unit,” said Dan Lucas, owner of Palo Alto-based Lucas Construction, founded in 1981.

“The critical task was removing a load bearing wall and bringing in a 27-foot beam and an 18-foot beam to provide permanent support, both of which weighed several hundred pounds apiece.”

The Lucas Construction team utilized a specialized high-rise forklift and crane to bring both beams through one of Wong’s third story windows.

The contractor, who has worked with Wong on remodeling projects for more than ten years, also transformed the larger unit’s kitchen into a much-needed storage area. Working with interior designer Donna Higgins and the 1001 Laurel Design Center, Wong was able to choose from a wide variety of options for hardwood flooring, cabinetry, carpeting and tile.

The newly-combined residences now feature two spacious master suites and an additional bedroom, ideal for family visits. With oversize windows throughout, Wong also enjoys both a balcony and patio, each offering breathtaking views of the Peninsula foothills above and around San Carlos.

1001 Laurel’s central Peninsula location in San Carlos is within minutes of world-class companies such as Oracle, Hewlett-Packard, Palo Alto Medical Foundation and Stanford University, and is within 30 minutes of both San Francisco and San Jose. Commute options such as Caltrain and SamTrans are just steps away. For more information, visit www.1001laurel.com or call 650-594-1005. The 1001 Laurel Sales Center is open daily (except Friday) 11:00a.m.-5:00p.m.

Run Date: July 9, 2010

Pleasanton Weekly: Editorial

With an estimated 10,000 crowding downtown streets and sidewalks for the First Wednesday festivities this week, it’s clear that the marketing efforts and retail and restaurant attractions of Pleasanton’s historic downtown are paying off. Although profits are still on the slim side, business has picked up with far more shoppers and diners than we saw at the peak of the recessionary economy a year ago. Reservations are needed at most restaurants on Fridays and Saturdays, stores are staying open later, and night-time entertainment at Barone’s, Redcoats, Main Street Brewery and The Farmer Restaurant is attracting larger crowds than ever.

Much of this is due to the aggressive and productive efforts of the Pleasanton Downtown Association, the city of Pleasanton and a downtown merchants group skilled in retail marketing. The PDA, under the leadership of its new director Laura Olson, who has extensive business marketing experience, sponsors the Wednesday street fairs and Friday night Concerts in the Park. The merchants’ group, headed in part by marketing guru Melanie Sadek, owner of Murphy’s Paw on Main Street, has championed several successful campaigns over the past year, including a street carnival last summer that raised $20,000 for Pleasanton schools. Now it’s gone a step farther, creating and selling discount coupon books with the goal of raising $100,000 for the school campaign under way by the Pleasanton Partnerships in Education (PPIE) Foundation.

The coupon books, designed and produced by Dee and Rob Nitzsche, owners of Your Stage Toys in collaboration with Allegra Printing, include pages of coupons from 40 merchants who each paid $130 to cover the cost of printing. They’re being sold at a number of downtown stores and restaurants for $10 each and offer discounts up to 50 percent at some establishments. Using just two or three of them more than reimburses the buyer and sends every cent of that $10 purchase price to PPIE.

But that’s not all. An advisory group has been meeting regularly to focus on making Pleasanton’s downtown more of an entertainment destination. Working under the auspices of the Santa Cruz-based Responsible Hospitality Institute (RHI), a national consulting agency, representatives of the city and civic and business organizations are looking at areas where downtown attractions might help boost the downtown entertainment sector while also driving more business to local shops and eateries. Suggestions so far include more late night eating places, especially those that might serve desserts to after-theater crowds once the new Firehouse Arts Center opens in September, and sidewalk food vendors to cater to the after-10 p.m. crowds. Other ideas range from theme nights that cater to certain age groups, staggered closing hours in different downtown zones, “What’s Happening?” bulletin boards at downtown kiosks, and live music and performers on downtown sidewalks.

Another outside agency has been hired by the city through its Economic Development Department, headed by Pamela Ott, who once was executive director of the PDA. She has contracted with Danville communications agency EMC Creative for some initial marketing research. In its first presentation to the city’s Economic Vitality Committee, EMC reported that its initial public survey showed considerable interest in more downtown entertainment and a larger variety of stores and restaurants. Peet’s Coffee and a Gap store were among requests made to EMC, even a movie theater. EMC will make a second —and more detailed—report at an upcoming meeting of the Vitality Committee, which will then consider recommendations on how to proceed.

Additions to the downtown that almost everybody liked are the sculptures that have been on display on downtown sidewalks since April. Created by internationally known sculptor J. Seward Johnson, they made their final appearance at last Wednesday’s street party before being moved to another city. More of these kinds of unique exhibits along with the creative thinking of the committees and consultants working to add greater vitality to downtown Pleasanton bode well for a business district that is seeing economic recovery.

Run Date: June 25, 2010

by Chris Casacchia
Phoenix Business Journal

More than 2,000 mortgage loan officers operating in Arizona will not receive their licenses by the state’s July 1 deadline.

The industry has had more than 18 months to meet the state’s new mandate for loan originators to get accredited hours, pass written state and federal tests, provide criminal background information, and submit fingerprints to law enforcement and National Mortgage Licensing Services.

Because it is a state law, no extensions or delays will be granted.

“The mortgage loan officer cannot do business as usual after July 1 if they do not have a license,” said Lauren Kingry, who was appointed superintendent of the Arizona Department of Financial Institutions in April.

The state regulatory agency oversaw nearly 3,700 licensed businesses before the law was passed. As of press time, it had processed 2,600 applications and approved 1,500 of them. The rest are awaiting additional information.

Kingry expects at least 1,000 more applications to be filed after July 1.

By statute, ADFI has 120 days to review a completed application, but turnaround is averaging about 60 days — a remarkable feat, considering the agency is underfunded and understaffed.

Roughly 45 brokers are licensed out of the 60 employed by Scottsdale-based Home-owners Financial Group — the sixth-largest mortgage broker in Maricopa County, according to the Phoenix Business Journal’s 2010 Book of Lists.

HFG President Bill Rogers, a licensed real estate instructor, likes the new law because now he will know the work history of future applicants.

“Instead of just references, it adds some accountability to the originator,” he said.

Paul Klimke, president of the Arizona Association of Mortgage Professionals, estimated that 65 percent to 70 percent of the state’s brokers and originators are licensed. With the mortgage industry still struggling, he doesn’t expect any problems to arise because of the backlog, as most companies have at least one licensed broker.

Klimke estimates 3,000 mortgage bankers and brokerages are operating in Arizona.

“None of us are so busy (that we don’t) have the capacity to handle it,” said Klimke, a branch manager at Amerifirst Financial Inc. in Mesa. “I don’t think the consumer will be affected at all.”

The only problem he has with the law is that it doesn’t require national banks and savings and loan institutions to go through the same process because they are supervised by federal regulators.

“Who were the guys getting all the bailout money?” he said. “Go figure.”

JPMorgan Chase & Co. generally supports efforts to ensure lenders meet professional standards, said spokeswoman Mary Jane Rogers. She said lenders at the New York financial giant complete rigorous, ongoing training.

Rex Duffin, a 30-year industry veteran who has spent 25 years with Sun American Mortgage Co. in Mesa, said the law will weed out some undesirables and those with criminal records, but big banks are hiring brokers who couldn’t get licensed through normal channels.

“It’s a big step to policing the industry, (but) there’s a big loophole,” said Duffin, who serves as senior vice president of Sun American.

Fifteen of Sun American’s brokers are licensed, and many are waiting for approval. Duffin isn’t a fan of the cost associated with getting a license here, which can run $1,000 to $1,200 for the state accreditation and 20 hours in the classroom.

Chris George, CEO of CMG Mortgage, called the loophole associated with big banks “astonishing.”

The San Francisco Bay Area firm opened a North Scottsdale office in April, and all 10 of its brokers are licensed.

“I think we should all take the test,” George said. “I don’t believe doing mortgages is a part-time exercise. There’s much more attention to detail today in doing a loan than there has been.”

He said many large brokerages and banks that fed off the subprime craze crumbled, while others are struggling to survive.

“I think everyone that is taking a loan application and helping someone make one of the largest investments in their life should be licensed,” Rogers said.

Mortgage licenses in Arizona
Applications received: 3,900
Processed: 2,600
Approved: 1,500
Awaiting more info: 1,100

Run Date: May 30, 2010

By Jim Wasserman
Sacramento Bee

Builders snap up cheap lots in Elk Grove project left for dead

The pop-pop-pop of nail guns has returned to Cordially Way in Elk Grove.

Madeira, a 1,900-acre planned development at the city’s southern edge, was nearly left for dead when the real estate market crashed. But builders have returned, although in a limited way. In recent months, they’ve bought hundreds of lots that had been repossessed by banks. Now they’re finishing model homes for the summer sales season.

Almost overnight, Madeira — formerly known as Laguna Ridge — has become a bargain for new-home builders. Land prices have dropped. The city has
cut fees.

The change raises hopes at Elk Grove City Hall for more home building that might help jump-start, among other things, the partially finished Elk Grove Promenade mall nearby, whose owner, General Growth Properties, remains in bankruptcy court.

“We went for a year without talking to landowners,” said Becky Craig, Elk Grove assistant city manager. “We’re talking with landowners every day now. More intend next fall and spring to pull permits.”

Last year, the City Council instituted 30 percent cuts in road and capital facilities fees paid by builders.

For Sacramento, which has suffered terribly from a collapse of residential construction and real estate values, the revival of builder interest in Madeira is another example of how the region is slowly climbing back.

Just as thousands of homeowners moved into foreclosed homes at cheap prices in recent years, home builders have scooped up lots for less.

Finished building lots in Madeira that once cost $200,000 sold for less than $40,000 last year, builders say. The lower prices enable builders to sell smaller houses — priced from the high $200,000s to low $300,000s – and compete against bank repos.

“We had one of the first bank deals that closed out here,” said Kevin Carson, Northern California president for The New Home Co. based in Orange County. The firm bought 76 lots previously owned by Corinthian Homes, which lost them to lenders.

Madeira, developed by Sacramento builders Reynen & Bardis, whose owners have since filed for bankruptcy protection, has long been considered Elk Grove’s premier new neighborhood. But it opened with room for 7,800 dwellings just as the real estate market crashed.

Sales quickly slowed to a trickle. Elk Grove says it has issued about 630 home permits since 2005. The city is pursuing judicial foreclosure against Reynen & Bardis for unpaid taxes on hundreds of undeveloped lots.

Madeira today is an eclectic suburban mix of new parks, trails and neighborhoods often surrounded by large swaths of open space. The streets, sidewalks, street lights and schools are in place, owing to a city policy that infrastructure be finished before the homes arrive. But it’s not uncommon to see jackrabbits hopping in the weeds where houses will rise.

Now a handful of new builders have moved in, with much more modest plans than their predecessors.

The New Home Co., largely owned and run by former John Laing Homes officials, plans to build 76 houses in the next two years.

Carson said the houses would be aimed at first-time buyers and those re-entering the market because of life changes. Many are tired of looking at foreclosures and distress sales, he said. Prices will range from $290,000 to $320,000.

He said the planned houses are also designed with more privacy in mind. Bedrooms have their own bathrooms to accommodate buyers caring for elderly parents and taking adult children back in after college. It’s also become more common, he said, to see adult friends or co-workers who have been through separate divorces buying together and blending their children to save money. The overall trend in this new economy, he said, is more adults and children together in a smaller space.

Aaron Saxelid, 13, looks forward to the prospect of new neighbors. He and his family moved into the Madeira community about a year ago.

“There’s not many kids around here,” he said.

Carson’s firm will battle for sales with three other builders at Madeira — Sacramento-based Axios Homes, Arizona-based Taylor Morrison Homes and William Lyon Homes of Newport Beach. All bought bank-owned lots at discount prices last year.

“That’s the reason we’re out here. The dirt went to a point where you can build an affordable home and have a market for it,” said Michael Marks, marketing supervisor for Axios. The builder is an affiliate of Sacramento’s Thomas Borge Development.

Axios bought 55 lots from a bank that repossessed them from Roseville builder Syncon Homes, said Marks. He said Axios paid less than $40,000 per lot.

“We’ve sold eight of our homes so far,” Marks said. “We’re seeing more people disappointed with the lack of quality of bank-owned homes and short sales.”
David McKown, sales and marketing director for William Lyon Homes, said the firm bought about 90 finished lots from a bank that repossessed them from Reynen & Bardis.

“At these prices we can finally make the things pencil out at a price we know we can move at a decent pace,” McKown said. He declined to say specifically how much the company paid.

Taylor Morrison Homes last year bought 156 bank-owned lots repossessed from Cambridge Homes, said Dar Ahrens, the firm’s Northern California division president. He, too, declined to name a price. But he said it was one-third less than the firm paid years earlier for nearby land.

Based in Arizona, Taylor Morrison has helped lead Madeira’s sales scene since it opened, and continued to build homes even as other builders lost their projects to banks. Michigan-based Pulte Homes has also remained dominant, averaging more than seven sales monthly at its Del Webb age-restricted community in Madeira, according to consultant Hanley Wood Market Intelligence.

“It has been the brightest spot for us in the Sacramento market,” said Ahrens. “It was the best last year and continues to be a stellar performer for us this year.”

Run Date: April 16, 2010

by Chris Casacchia
Phoenix Business Journal

A Northern California mortgage firm is expanding into North Scottsdale, targeting high-end customers with a product developers say will significantly reduce mortgage payments and shorten the life of the loan.

San Ramon, Calif.-based CMG Mortgage opened a retail branch last month at 8510 E. Shea Blvd. to capitalize on the area’s affluent residential base and the site’s proximity to one of the largest Re/Max outfits in the Valley.

CMG offers conventional, jumbo and Federal Housing Authority loans, but makes money with its Home Ownership Accelerator, which essentially is a credit line combined with a traditional checking account through Ameriprise Bank FSB.

Home buyers need good credit, disposable income, a proven savings history and at least a 25 percent down payment. Refinancers need at least 25 percent equity in their home — a difficult requirement in Arizona, where home prices in many areas have been sliced in half since the foreclosure crisis
and recession.

“This loan is not the right loan for everyone,” said Christopher George, founder, president and CEO of CMG Mortgage. “If you have no real money at the end of the month, I’m not sure if this is the right loan for you.”

In a program modeled after others used in Australia and Great Britain, homeowners deposit paychecks directly into the loan account, reducing the principal instantly, and thus the interest.

In a traditional loan, the balance is constant all month, then decreases with the mortgage payment. Under this program, the money in the bank account drives the balance down daily, lowering the interest. The interest savings roll over into the next month, creating a lower principal balance. This compounds month after month, so borrowers can pay off the mortgage — or, in this case, the credit line — years earlier than a traditional loan.

“We’re able to expose a lot of high-end customers to a product that gives them a viable solution for loans up to $1 million to $1.5 million,” George said. “It’s a very flexible and efficient way to let your money work for you.”

The program was introduced in 2005. Within three years, more than 6,100 clients used it to fund a total of $2.5 billion in mortgages. Loans were made primarily in California, but Arizona was the second-largest market.

On Aug. 11, 2008, the product was pulled from CMG’s rate sheet when investor GMAC Financial Services ran into liquidity problems and couldn’t continue funding credit lines. George called it “a very dark day” for him and the company he had established in 1993 in his basement.

After months of soliciting financial firms, George inked a deal with Ameriprise Bank, a subsidiary of Minneapolis-based Ameriprise Financial Services Inc. Eric Harris, the bank’s chief credit officer and lending general manager, said the program helps clients reach their financial goals.

“It allows them to pay off their mortgages faster by more efficiently using their idle cash, which gives them more flexibility to build a comprehensive financial strategy,” he said.

Since it was reinstated in October, the product has found success reeling in high-net-worth athletes, authors and executives. CMG opened offices in Kirkland, Wash., and Denver in October, and in Minnesota in February. CMG also is expanding to San Diego as many competitors continue to struggle during the recession.

CMG opened its Scottsdale office with five loan officers and a few staffers. An average-size office employs 15 to 25 loan officers who can earn $125,000 to $175,000 a year, George said. CMG also operates a wholesale outfit in Arizona.