Developer Makes Splashy Debut in Simi Valley

Home developer Landsea Homes has found instant success in Simi Valley. Its master-planned community, the Westerly, sold 11 homes during its opening weekend of June 2-3. To date, 18 homes have been sold plus one reserved. What’s remarkable is that this 211-unit residential complex is the first such enterprise staged by the Irvine company in Simi Valley or anywhere in the surrounding communities. “The Westerly is the first Landsea Homes development in the area. At this time, we do not have any other projects planned in neighboring territories,” said Landsea spokesperson Nicole Morrison. Nearly 1,000 prospective homebuyers visited the tract of contemporary townhomes, which listed each home in the high $400,000s. The new community features six model homes with floorplans ranging from 1,400 to 2,200 square feet, with three to four bedrooms, porches, two-car garages and energy efficient features.  The residential complex’s amenities include the Watering Hole, a resort-style pool and community gathering space; six parks; and access to 5,600 acres of preserved open space devoted to biking, hiking and horseback riding.   Landsea bought The Westerly in 2014, debuting the model homes this year. According to company representatives, the idea of opening a master-planned community in Simi Valley was a no-brainer. “Simi Valley was a natural extension for our expansion across California,” said Landsea Homes Vice President of Sales and Marketing for Southern California Kaylee Smith. “The area has everything we look for – housing demand, job growth and a unique community feel.” Adding another layer to Landsea’s success is the struggling nature of the local economy. Anyone keeping abreast with regional economics knows that Ventura County has a housing supply problem, as noted by California Lutheran University economist Matthew Fienup at last month’s Greater Conejo Chamber of Commerce Economic Forecast in Westlake Village. Inventory is tight in Simi Valley while prices are high. According to a Southern California Association of Governments 2017 analysis of Simi Valley, housing production hit its peak in 2005 with 1,387 permits issued for all residential units and hit its lowest points in 2009 (6 permits) and 2014 (3 permits) before rebounding with 160 permits in 2016, yet still falling short of its pre-Great Recession peak. Despite a lack of inventory – or because of it – median home sales in 2016 climbed to $508,000, nearly rivaling the past-decade peak of $580,000 in 2006. Mid-Year Assessment In a talk with the Business Journal, economist Mark Schniepp gave a mid-year report, saying the San Fernando and Santa Clarita valleys continue booming while Ventura County and Antelope Valley struggle. Schniepp, executive director of Santa Barbara-based California Economic Forecast, said tourism has hit record levels in Los Angeles and Orange Counties due to California’s expansive economy; record-low unemployment; and rising wages and household wealth. In L.A. County, unemployment has also reached a record low. “I can’t find a lower rate of unemployment as far back as records exist (to 1966),” Schniepp told the Business Journal by email. “Technology has not slowed down. Ditto entertainment. Even the retail sector remains resilient, despite the retail apocalypse occurring throughout the nation.” Locally, the Valley is one region partaking in the Golden State’s economic goodwill. “The San Fernando Valley economy may be the fastest growing at this time, due to entertainment and gaming industries that are flourishing there,” Schniepp said. “Office space is tight and available warehouse space is virtually non-existent.” Santa Clarita Valley also continues to progress with about 3 percent employment growth and the Antelope Valley economy had also seen a spurt. “Jobs are being created and some new development is occurring,” Schniepp said. “But there has still not been a recovery from the housing fallout during the Great Recession. The Antelope Valley is also still a bedroom community with many commuters into the Valley economy.” Schniepp believes Antelope Valley has been impacted by Kern County, which has endured slumping oil prices and drought. “This has had some spinner effects on Lancaster and Palmdale,” the economist said; nevertheless, “energy projects in Kern and elsewhere are rebounding.” The picture is not so sunny for Conejo Valley and the rest of Ventura County, which still lag Southern California in economic growth “due entirely to SOAR (the Save Open Space and Agricultural Resources initiative, which requires new developments to obtain voter approval) and the lack of organic growth,” the economist continued. “There is still high vacancy for office space in the Conejo Valley.” Staff Reporter Michael Aushenker can be reached at (818) 316-3123 or [email protected]