Spotlight on Land Banking - Silver Saddle Ranch & Club
Samuel Goodwin | September 9, 2014
As first appeared in Land Baron, the Journal of Real Estate Investing
Reprinted here by permission.
In an earlier article, Land Banking to Wealth – Ten Principles for Success, I discussed the ten key factors that play into a successful land banking project. While the principles were based around the Antelope Valley in California the truth behind each principal could be applied to projects virtually anywhere.
This time we are going to showcase a land banking offering that exemplifies the principles found in Land Banking to Wealth… Something of a success story in the making.
First, in adherence with such disclosures as may be required, I must discuss upfront any association with Silver Saddle Ranch in which this article would constitute a conflict of interest. There is none. Although I have visited Silver Saddle Ranch and examined their property in the past I have no interest in promoting the property and anticipate no monetary compensations for this report. The report is as unbiased as I believe it is possible to make it and the conclusions drawn here are reflective of facts and the learned opinions of experts in the field of real estate investing including myself and others.
Overview
Silver Saddle Ranch & Club
Silver Saddle Ranch is located approximately 12 miles North/ NorthEast of California City, California. The resort has been functioning for 30+ years and has a loyal following of owners who have bought into various aspects of the property over the years. The resort itself consists of a Main Lodge offering check-in, a small sundry shop, restaurant and bar as well as a small game room and library.
There are several lodging aspects to the property including hotel rooms, “bungalows” and camping along with a popular RV park. The property has numerous water features and among the most often heard comments are the words “desert oasis”. With the numerous shade trees, streams and park like setting this is certainly an apt description.
There are numerous amenities offered including biking, water sports, tennis, basketball, children’s games, mini golf, pool and hot tubs and more.
The area around Silver Saddle Ranch has been zoned, plotted and developed to various degrees throughout the property and improvements include roads, utilities and signage.
As a whole, the Silver Saddle Ranch project creates an ideal anchor development for future expansion and development of the immediately surrounding area. The proximity to California City adds to this appeal as does the continued growth trend of Antelope Valley.
Lets now examine the Ten Principles for Success and see how well Silver Saddle Ranch matches the ideal.
Land is reasonably level and developable, i.e. usable.
The Antelope valley overall is a relatively level area and the land surrounding Silver Saddle Ranch and California City is no exception. Not only does the Silver Saddle Ranch property meet the criteria for being “reasonably level and developable”, much of it already is in development.
Transportation by car, train, or plane is available within a 1 hour radius.
The area immediately bordering Silver Saddle Ranch is crossed by numerous state and county roads ranging from county access roads to six lane arteries. Rail travel is accessible in Lancaster Palmdale as is air travel via the two airports there. All of this is within a one hour radius of Silver Saddle Ranch.
Utilities to allow rapid growth are immediately available or in place.
Utilities are in place.
Site is located in proximity to a growing metropolitan area.
As an extension of Lancaster/Palmdale the California City area is now experiencing the front edge of the growth and indicators point to it being destined to be absorbed into a comprehensive metro area.
Existing industrial and/or commercial base is expanding.
Reasonable property values, low tax rates and economic incentives have combined to make California City and the surrounding area one of the fastest growing regions in the country. Multiple big name companies including Fortune 500 firms are all staking claim to positions in Antelope Valley and more so the northern end where Silver Saddle Ranch is positioned on the border.
Proximity to residential development including low cost housing.
California City already has much of the residential infrastructure needed to foster a growth spurt. Low to moderate income housing is readily available with zoning in place to provide for more as needed. Silver Saddle Ranch not only bookends this growing economic zone but easily lends itself to becoming an upscale bedroom community providing a level of relative peace and quiet to complement the commercial development due within the decade.
Authoritative projections for healthy population growth.
The figures are in from County and State and the growth is coming to the north end of Antelope Valley. Silver Saddle Ranch is like an island and the growth is the tsunami that is building up to flood the area with development. The population growth is slated to remain at a steady or somewhat increased level through the projections for the next 30 years.
Master plan for streets, roads, sewer, electric, and gas.
A great amount of the land surrounding Silver Saddle Ranch is either already under preliminary development or is plotted and approved for development. The area designated for the land banking program does contain pre approved parcels along with favorable zoning to provide for flexibility with new development.
In an area that has already been targeted for growth.
It may seem a reiteration but, Silver Saddle Ranch and the surrounding area is targeted for growth. The growth is coming, in fact much of it has begun. The fact that the infrastructure is already to a large extent in place simply provides the catalyst to expedite the incoming growth.
In a reasonable proximity to jobs and affordable housing.
The industry growth that is occurring in and around Antelope Valley, and California City in particular, is nothing short of spectacular. California City has already positioned itself as a provider of moderate housing and support services. Much of the remaining areas outside the California City/Silver Saddle Ranch corridor are simply not ready to handle the expansion. These two areas are and it may be therefore assumed that the growth will follow the path of least resistance.
In Conclusion
I used Silver Saddle Ranch and Club as an example here for the simple reason that the project exemplifies the Ten Principles in a way that no other land banking project I know of could do. It really hits the nail on the head as far as fulfilling the promise that land banking offers. Because of that it was an ideal project to use to demonstrate the Ten Principles.
As I said before, I have no interest in promoting Silver Saddle Ranch or the land banking program there. I make no money should you invest or not. So please, while my series of land banking articles may have raised your interest in this potentially lucrative method of investing, you really are free to locate and invest in any project you desire. Just remember to first apply the Ten Principles of Success to the project in question and see how it stacks up. Facts are facts, and while Silver Saddle Ranch may clearly have the game well in hand, this may not be the case with other projects. So, do your due diligence, as I have here, and then…happy investing!
About Samuel Goodwin
Samuel Goodwin is an investor, author and consultant in the real estate industry for many years. Mr. Goodwin has written over two dozen papers on real estate investing, holds or has held a real estate license in 5 states and a Broker’s license in 3 states. He currently resides with his wife and youngest of three children in his ocean front home outside of Portland, Oregon.