Warmington Homes builds against the tide in downtown San Jose - Silicon Valley / San Jose Business Journal:

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The Costa Mesa company believes theproduct — singlr family houses — and its locatiomn near Japantown is a good bet. Mark Warmington’s Northern California division president, said the development is a uniquse one for downtownSan Jose, whichy has been constructing towering high rises. This projecg has a suburban flavor andfeatures two-story with a small yard and two-car garage. The 2,000-square-footg homes will start in the mid- to high The builder will construct four in thefirst phase. In downtowmn San Jose, there have been no single-family detached homes built in the last few Rowson said. Warmington purchased the 10-acrw industrial site in December 2008.
Standarx Pacific Homes had an option on the land in 2006 at the top the markeg and began work on the But Standard walked away when the markert soured and creditbecame unavailable. The property reverted back to theoriginal owners, San Jose Property Investment LLC and DAK, a Californi a general partnership. Warmington bought the land from San Jose Propertg Investmentand DAK. The company has an agreementt with the original owners to developl the propertyin phases. “This is an extended build-out, it’s not a churn,” said Matt Warmington’s executive vice president.
“We’re very sensitive to Irvine-based Standard Pacific Homes, a major developetr of projects inthe hard-hit Centrap Valley, did not return calls seeking comment. Tingler would not disclose thepurchases price, but he made it clear the builderf is operating as economically as possible. “Since approximately 2006 we stoppedd buying land and resolved to sell through our existing portfolioof projects,” Tingler “We have a handful of projectsx still remaining that are tough.
But, sincew we never overextended during the we now have fewer troubled projects to work This most recent acquisition comes at an opportune time for The company has trimmed its portfolio from 30 projectzsto five, a number Tingler said Warmingtobn is very comfortable with. Its determinationj to get lean presents itsown challenges. Now the homebuilder is almos t outof homes. “Wde sold out of Viridian in San Jose and Vantagde inPalo Alto,” Tingler “. We had a ton of product that we moved through and we paid backour debt.
Now we’re out of That strategy, however, is servintg Warmington well as it pursuea its nextline — managing distresse assets for three banks, Comerica Guaranty Plus Properties 2 LLC and Bank of Tingler said Warmington started chasing the business 18 months ago before the market was ready. Now there’s a lot of although little is located in the core Bay Areamarkert — most is currently in the tertiary markets in the Central Warmington competed against other builders for the businesa that can entail everything from securing the property to ensuringt there is no vandalism.
“We’re not actinf as a broker; we’re not sellint the property forthe bank, but we can give a builder’s perspectived of what it’s worth,” he said. Warmingtomn is a veteran of such business, Tinglef said, having performed similar duties during the last majo r housing recession in the late 1980s andearlyy 1990s. The company has agreer to sell more than 600 homes in five marketes located in Southern California and Nevada for TriPacific CapitaolAdvisors LLC. Asked whether the work paid he said, “From our perspective, any revenue comintg in represents dollars that we would nototherwiss have.
The goal is to help our financial partners whilr at the same time generat revenue to help cover It also keeps Warmingtohn abreastof what’s going on in many Rowson said the South Bay has the greatest opportunitty for upside. At a seminar there was talk that said the marketgis close, if not at, the bottom. “The Bay Area core marketss have the greatest potential to solidify right now over the next six monthz and then showan uptick,” he