At the latest RSF Board of Directors’ meeting, the board decided against selling a portion of the 25-acre parcel of Osuna property for the time being.
The RSF Review reports:
“The Association purchased the 28-acre Osuna property in 2006 for $12 million with the goal to preserve the historic adobe, protect open space and prevent subdivision. A three-acre parcel was sold for $1.7 million in 2013, leaving 25 acres as one legal parcel.
At the direction of the board, the Osuna Committee analyzed three valuation scenarios. The first scenario included selling the property as is, which was valued at $8.96 million. In a second scenario the Association takes on the role of a developer, makes improvements and sells the lots as a two-to-five-lot subdivision assuming all development risk and expense. In this scenario the property is valued at $7.97 million to $8.75 million, generating $3.8 million to $5.13 million in cash.
A third scenario is a developer subdivision, in which the Association sells the unentitled land to a developer and the developer manages the subdivision and assumes all risk and expense. In this scenario, the property is valued at $6.56 million to $7 million, generating $2.7 to $3.39 million in cash. In all scenarios, the Association would retain the adobe parcel.
As Yahr noted, the Osuna Ranch is a positive cash flow, not a huge one, but it’s anywhere from $30,000 to $50,000 a year and it covers all the costs of operating the adobe and repairs. If that property is sold there will be no revenue generation.
In reviewing the valuation scenarios, the board members agreed that it was not the right time to move forward. Board member Philip Wilkinson expressed disappointment with how low the appraisal was.”
Read the full RSF Review story here