1230 Larnel Place, Los Altos

<p>The investment involves the rebuild and sale of a single family home in Los Altos, CA. The Sponsor will rebuild and sell the property within 12-14 months.</p> <p>The principals of the Project Sponsor have successfully built several homes in California over the past decade.</p> <p>The Sponsor is in contract to purchase the property in late February. Accordingly, the primary objective of this investment is to (1) purchase the property, (2) complete the rebuild work upon closing of the transaction, and (2) sell the property after 12-14 months.</p>

Luxury Living

Aron Developers Inc. is a technology driven Real Estate Development company. We started in 2013 with the mission to revolutionize real estate development by using best in class software tools or build our own software tools in the four core areas of our business - acquisition/diligence, capital formation, operations and sales.

We have closed escrow on the sale of 1230 Larnel Place! The transfer was recorded on Friday, April 22nd. All loans and preferred equity have been paid back in full in addition to the promised return.
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The painting crew is working full speed. All the cabinets are painted. Now, they are working all the interior walls. Painting will be finished by Monday, after which electricians and plumbers will come back for the finish.
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All interior tile and counter top installation is complete, and we are now ready for painting. Exterior trim is installed and the final coat of stucco is being applied.
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Flooring installation has finished. Exterior landscape is almost complete. We will begin painting the interior and putting up exterior stucco next week.
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Tile installation is almost complete. We will begin flooring installation very soon. Exterior drainage is complete. The landscapers has begun forming patio and other hardscape. Weather permitting, we will be pouring concrete this and next week.
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Cabinets have all been installed. Hardwood floor has been delivered. Tiles are being installed in the bathrooms.
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Sheet rock and texturing is complete. We have begun installing cabinets. Next week, we will begin counter top fabrication and install other tile and stone in bathrooms.
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Sheet rock installation is complete. Exterior stucco is complete. Texturing and taping is almost done. The recent warm weather will help accelerate the drying of drywall compound. Next week, we can possibly start cabinet, tile/stone installation once the sheet rock is completely dry.

PG&E is there today to hook up electricity. This has traditionally been a big risk factor in finishing the home on time. We are happy that this risk factor has been removed.

Finally, we have secured a potential buyer for the home. The contract is in place, and will close once occupancy permit is approved by the city. Tentative date is 4/7/2016 - one month ahead of schedule! Please keep this confidential, as well all other communication in the weekly update, as we don't want to jeopardize the deal.
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Sheet rock installation is almost complete. Exterior stucco is in progress. Next week we will start texturing and taping the sheet rock and begin cabinet and tile / stone installation.
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Insulation has been installed. The team has started putting in sheet rock. After that, the team will texture the sheet rock and install interior trim and cabinets.
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Electrical, HVAC and plumbing trades have finished rough-in installation. Next step is insulation and sheet rock installation. Installation of roof tiles are in progress.
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Electrical, plumbing and HVAC trades are all underway. Each trade is working on rough-in items like light housings, wiring, ventilation ducts, sun tunnels, water supply lines, sewage lines and gas lines.
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Most windows and doors are installed. The team has begun installing water resistant barrier and metal lath to the exterior walls.
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Roofing underlayment has been installed. The roof is now weather lock.
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Framing of the roof is complete. We are waiting for inspection to be completed within the next few working days.
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Plywood decking has been placed along with wood fascia on the roof.
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Exterior walls have been completed. Waiting for framing inspection.
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We are pleased to announce that 1230 Larnel Pl. closed on Mar 3rd with a total funding of $805,000. You should expect to receive your first monthly payment by April 15th and this will cover the period from 03/03/15 to 04/10/15. Please let us know if you have any further questions. Thank you.
  • We will be building a 4500 sqft home plus 2 car garage.
  • This being a creek side lot, there are additional set of regulations we have to comply with - e-g- 25 feet setback from top of the creek bank. So the layout and the floor plan has changed from what the architect had proposed earlier. We've attached the updated site plans, floor plans and front elevations. The guest unit is no longer detached. Also we have reduced one bedroom - so there are only 5 bedrooms total instead of 6 earlier as it allowed for an overall better design and flow of the house.
  • We are waiting on the Planning Department for their approval of the plans after we addressed their comments from first round of review. Once we get planning approval, we will be submitting to Building department.

Overall we are on schedule as we had expected 4-6 months to get the permit.
We received City of Los Altos Planning Department approval to submit to Building Department yesterday. Next step is to submit with Building Department which we will be doing this coming Monday 06/01/2015.
We received first round of comments from Building Dept on our plans in first week of July and were able to turn it around and resubmit for 2nd round of review on July 9th.

We are expecting to receive building permit within next 2-4 weeks. As soon as we get the building permit, we plan to start the construction.

The market has been up since we bought the property in March 2015. So, while we are waiting for the building permit, we are exploring the possibility of selling the existing home along with the architectural plans. We have listed the property on MLS at $2.99M and plan to keep it on sale only for another 1-2 weeks (while we wait for building permit).

Couple of points:
  • Market is up, so we are exploring if we can sell existing home that we bought along with plans for the originally projected profits if not more. If we are able to get the list price, it would mean better than originally projected profits in half the projected time frame.
  • We have not started construction, nor have we taken on construction financing, that's why the cost is much lower and hence the lower $/sqft on list price.

Foundation is being poured today. Site is almost ready for framing.
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The framing along with exterior wall have started going in.
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The framers are currently working on putting rafters on for the roofing.
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