WEBVTT 00:00:00.000 --> 00:00:04.019 We're bullish on Las Vegas. 60 ,000 people a 00:00:04.019 --> 00:00:08.259 year move here. 22 ,000 households are created 00:00:08.259 --> 00:00:10.939 every year, and about 13 ,000 homes are built, 00:00:11.220 --> 00:00:14.580 including multifamily. So we'll be OK as developers. 00:00:14.900 --> 00:00:19.410 It's just a... Ever wonder what really happens 00:00:19.410 --> 00:00:21.969 behind the scenes in construction, real estate, 00:00:22.170 --> 00:00:24.589 and development? We pull back the curtain on 00:00:24.589 --> 00:00:26.890 the new home construction industry, the real 00:00:26.890 --> 00:00:29.210 estate market, and the trends shaping it all. 00:00:29.629 --> 00:00:32.289 Discover the stories, insights, and expertise 00:00:32.289 --> 00:00:34.969 behind the process of building a new home. Join 00:00:34.969 --> 00:00:37.929 us for Trust the Process podcast, and let's build 00:00:37.929 --> 00:00:42.420 something great together. Welcome back to Trust 00:00:42.420 --> 00:00:45.320 the Process, podcast where we talk about new 00:00:45.320 --> 00:00:48.079 homes, the real estate industry, the market, 00:00:48.259 --> 00:00:51.929 and everything in between. Had a little bit of 00:00:51.929 --> 00:00:54.810 a different look today. Still have Michael joining 00:00:54.810 --> 00:00:58.390 me. Our resident expert with all of the good 00:00:58.390 --> 00:01:01.350 information. And we've gone to kind of a more 00:01:01.350 --> 00:01:03.789 remote platform. Couple of reasons we've done 00:01:03.789 --> 00:01:05.569 this. First, because it's not always convenient 00:01:05.569 --> 00:01:07.250 to get together. But secondly, we're thinking 00:01:07.250 --> 00:01:10.310 it will be a good way to introduce guests as 00:01:10.310 --> 00:01:12.209 we go. Other speakers that we bring in or other 00:01:12.209 --> 00:01:14.090 experts in other fields that we'd like to start 00:01:14.090 --> 00:01:16.310 including into the information in the podcast 00:01:16.310 --> 00:01:18.689 we share with you. So this is kind of our trial 00:01:18.689 --> 00:01:21.310 run. Though we have... We have a great topic 00:01:21.310 --> 00:01:25.430 to follow up on. Previously we spoke about the 00:01:25.430 --> 00:01:27.930 project that we're working on and some of the 00:01:27.930 --> 00:01:30.930 obstacles that we faced with permitting and making 00:01:30.930 --> 00:01:34.750 sure that it works well. And I can go ahead and 00:01:34.750 --> 00:01:37.950 I'll link that first one in the body of the content 00:01:37.950 --> 00:01:40.450 here and then you guys can go back. If you didn't 00:01:40.450 --> 00:01:42.810 catch the first half, this is the follow up. 00:01:43.530 --> 00:01:46.530 So update us on the latest if you will, Michael. 00:01:46.700 --> 00:01:49.980 Well, we had a thanks for the intro and I always 00:01:49.980 --> 00:01:51.680 love being called a resident expert. I'm taking 00:01:51.680 --> 00:01:54.140 that any day of the week. I know it's my favorite. 00:01:56.599 --> 00:01:59.120 Resident could also mean that I'm inpatient and 00:01:59.120 --> 00:02:08.360 inpatient psych ward. So this last week we had 00:02:08.360 --> 00:02:12.439 our rubber stamp city council meeting where they. 00:02:12.669 --> 00:02:14.789 essentially approved this subdivision that we've 00:02:14.789 --> 00:02:17.770 been working on for about seven months and That 00:02:17.770 --> 00:02:20.310 represented several meetings that represented 00:02:20.310 --> 00:02:22.969 two neighborhood meetings that represented When 00:02:22.969 --> 00:02:25.849 I say that that represents meaning that represented 00:02:25.849 --> 00:02:28.669 the culmination of multiple neighborhood meetings 00:02:28.669 --> 00:02:30.909 multiple meetings of my engineer I meet with 00:02:30.909 --> 00:02:33.150 the engineering team every other week and we've 00:02:33.150 --> 00:02:35.050 been doing that since about January February 00:02:35.050 --> 00:02:37.889 So that's a lot of for midway through the year. 00:02:37.889 --> 00:02:41.699 So that's about 13 That's about, yeah, about 00:02:41.699 --> 00:02:44.120 seven or eight meetings at this point. No, more 00:02:44.120 --> 00:02:45.860 than that. Yeah, probably 15 meetings at this 00:02:45.860 --> 00:02:48.780 point. And then you meet with them because you 00:02:48.780 --> 00:02:51.099 meet with them and then you meet with us to download 00:02:51.099 --> 00:02:53.439 the team on the latest updates. So you spend 00:02:53.439 --> 00:02:57.080 a lot of time. Each meeting is an hour and then 00:02:57.080 --> 00:03:00.080 I spend an hour talking with the team and I spend 00:03:00.080 --> 00:03:01.840 an hour thinking about it for the next week. 00:03:01.900 --> 00:03:04.240 Maybe they gave me something to chew on and we'll 00:03:04.240 --> 00:03:06.139 kind of talk about that when I pull the map over 00:03:06.139 --> 00:03:08.500 and we can show the audience what was technically 00:03:08.500 --> 00:03:13.490 fully approved. It's satisfying. It's a very 00:03:13.490 --> 00:03:16.969 satisfying win that we got through all of these 00:03:16.969 --> 00:03:20.189 hurdles. When the parcel came to me, it was zoned 00:03:20.189 --> 00:03:22.909 for public use. It was privately owned, but zoned 00:03:22.909 --> 00:03:25.310 for public use. So think something like a church. 00:03:25.729 --> 00:03:27.729 Think about something like maybe a rec center. 00:03:28.849 --> 00:03:32.469 And it was wedged between two residential housing 00:03:32.469 --> 00:03:35.889 developments, and it was only two acres. So it's 00:03:35.889 --> 00:03:38.669 not some massive site. It was right way between 00:03:38.669 --> 00:03:41.550 two residential housing projects. And then on 00:03:41.550 --> 00:03:43.370 the other side of the street was more residential. 00:03:43.610 --> 00:03:46.050 It didn't have the infrastructure for walking. 00:03:46.590 --> 00:03:48.550 It didn't have any other draws. There was not 00:03:48.550 --> 00:03:50.449 really a ton of density in the area that would 00:03:50.449 --> 00:03:53.830 justify it being some sort of public use. So 00:03:53.830 --> 00:03:56.069 the owners of the parcel came to me in a joint 00:03:56.069 --> 00:03:58.449 venture and said, if you can get this switched 00:03:58.449 --> 00:04:02.930 over and pulled out of that public use master 00:04:02.930 --> 00:04:05.830 plan. So the city has a master plan. not a master 00:04:05.830 --> 00:04:07.590 plan community in the sense that we think of 00:04:07.590 --> 00:04:10.310 them but the city itself has a master plan where 00:04:10.310 --> 00:04:13.129 they have every parcel zoned accordingly to what 00:04:13.129 --> 00:04:15.430 their vision for the city is and what they feel 00:04:15.430 --> 00:04:18.009 the citizen vision of the city is right because 00:04:18.009 --> 00:04:19.970 they're all elected officials for the most part 00:04:19.970 --> 00:04:22.870 so or at least the tone is set by the elected 00:04:22.870 --> 00:04:25.670 officials so it's a big hurdle the reason i go 00:04:25.670 --> 00:04:27.629 into that detail is it's a really really really 00:04:27.629 --> 00:04:30.250 big hurdle to get something pulled out of the 00:04:30.250 --> 00:04:32.550 master plan so we had to make a really compelling 00:04:32.550 --> 00:04:36.560 argument i .e. This is why we need to do it. 00:04:36.839 --> 00:04:40.360 What do you need from us to let us do it? And 00:04:40.360 --> 00:04:42.379 essentially, we started with wanting to do a 00:04:42.379 --> 00:04:45.459 23 -home townhome community. We had a map for 00:04:45.459 --> 00:04:48.699 that. We didn't have enough common space per 00:04:48.699 --> 00:04:51.459 the city requirements, so we nixed the townhome 00:04:51.459 --> 00:04:53.399 zoning. The city was okay with that density. 00:04:53.620 --> 00:04:56.600 They actually want the density. They just weren't, 00:04:56.600 --> 00:04:59.160 we weren't able to get a waiver of all the other 00:04:59.160 --> 00:05:01.220 standards that they make every other developer 00:05:01.220 --> 00:05:03.980 do. So I thought that was pretty fair. to say, 00:05:04.100 --> 00:05:05.939 if you could get that density in, great, but 00:05:05.939 --> 00:05:07.600 I don't think you're going to be able to without 00:05:07.600 --> 00:05:09.139 bending a lot of the other rules and we're not 00:05:09.139 --> 00:05:11.339 prepared to bend those rules for you because 00:05:11.339 --> 00:05:12.939 it's going to start a cascade and then every 00:05:12.939 --> 00:05:14.379 other major builder is going to come to us and 00:05:14.379 --> 00:05:16.920 say, why don't you make us do park spaces and 00:05:16.920 --> 00:05:19.079 roundabouts and things like this to get the townhome 00:05:19.079 --> 00:05:22.279 density? And we'd say, oh, I don't know. Why 00:05:22.279 --> 00:05:25.000 would we let Trostone Builders do it? They're 00:05:25.000 --> 00:05:27.000 a convincing man, but I'll marry that company. 00:05:27.819 --> 00:05:31.399 Very compelling. So essentially, we drew several 00:05:31.399 --> 00:05:33.910 maps up and that was our first phase was just 00:05:33.910 --> 00:05:37.310 getting in front of the staff advises the Planning 00:05:37.310 --> 00:05:39.129 Commission. Planning Commission are appointed 00:05:39.129 --> 00:05:41.970 or elected and then obviously City Council is 00:05:41.970 --> 00:05:44.990 fully elected. So we start with the staff and 00:05:44.990 --> 00:05:47.389 they kind of usher you through it and say okay 00:05:47.389 --> 00:05:49.569 we're going to be okay with it we're going to 00:05:49.569 --> 00:05:52.610 do a staff recommend. If you can get those two 00:05:52.610 --> 00:05:56.050 golden words that is you're halfway there. If 00:05:56.050 --> 00:05:57.829 you can get those words staff recommends on any 00:05:57.829 --> 00:06:00.329 of your staff reports or kind of any of your 00:06:00.329 --> 00:06:02.079 documentation you're going to have hope. far 00:06:02.079 --> 00:06:04.860 greater odds of getting it through neighborhood 00:06:04.860 --> 00:06:07.899 meetings, getting it through planning commission, 00:06:08.019 --> 00:06:09.620 and then obviously whatever planning commission 00:06:09.620 --> 00:06:11.500 and staff says, city council pretty much rubber 00:06:11.500 --> 00:06:14.480 stamps, you would, and that's what was last week, 00:06:15.040 --> 00:06:19.160 last Tuesday. So that being said, we knew going 00:06:19.160 --> 00:06:21.120 into last week that we were going to be fine 00:06:21.120 --> 00:06:23.300 because we had satisfied all those things. So 00:06:23.300 --> 00:06:24.959 I didn't even go to that city council meeting. 00:06:25.779 --> 00:06:28.300 I left the engineering firm that we hired to 00:06:28.300 --> 00:06:31.540 do the tentative map and they advised us legally 00:06:31.540 --> 00:06:34.259 on some of the certain processes to get through 00:06:34.259 --> 00:06:37.180 those maps getting recorded. So I let them kind 00:06:37.180 --> 00:06:38.639 of handle it through and through and I just got 00:06:38.639 --> 00:06:40.899 an email the next day. City Council had no problem 00:06:40.899 --> 00:06:44.120 with it. I noticed the final action was issued 00:06:44.120 --> 00:06:46.879 which essentially means get this map recorded 00:06:46.879 --> 00:06:50.079 once you get your civil plans done and that becomes 00:06:50.079 --> 00:06:53.600 six parcels a right away and some common spaces. 00:06:54.269 --> 00:06:57.589 So we're generating, I think, nine unique new 00:06:57.589 --> 00:06:59.930 parcel numbers, and then a public right -of -way. 00:07:00.009 --> 00:07:01.810 That will be the opposite to call it a sack. 00:07:02.310 --> 00:07:04.290 So it's quite a feat. It's pretty rewarding to 00:07:04.290 --> 00:07:08.050 think that we took a hillside, which was an eyesore 00:07:08.050 --> 00:07:11.810 and a blight on the community for years, and 00:07:11.810 --> 00:07:15.209 odd zoning. It was just kind of this hangover 00:07:15.209 --> 00:07:17.850 of an old master plan that they never changed, 00:07:17.850 --> 00:07:21.189 right? And the residents didn't want it to be 00:07:21.189 --> 00:07:23.529 public use. The residents wanted it to be residential. 00:07:23.740 --> 00:07:27.500 around them the lower impact use right in fact 00:07:27.500 --> 00:07:30.399 when we went to we you have to send up postcards 00:07:30.399 --> 00:07:32.639 to a thousand foot radius i want to say roughly 00:07:32.639 --> 00:07:35.060 a quarter mile all the rooftops in a quarter 00:07:35.060 --> 00:07:36.879 mile radius with a postcard that says this is 00:07:36.879 --> 00:07:40.160 what we're planning on doing and this is the 00:07:40.160 --> 00:07:41.980 density we're going for and all that yeah so 00:07:41.980 --> 00:07:44.079 we send that over we had to reserve a spot at 00:07:44.079 --> 00:07:46.779 the community rec center to have this meeting 00:07:46.779 --> 00:07:49.560 and about eight people showed up from the newer 00:07:49.560 --> 00:07:52.519 neighborhood that were more luxury homes to the 00:07:52.519 --> 00:07:54.860 west of my parcel, the immediate western boundary. 00:07:55.660 --> 00:07:59.279 And there really wasn't any major pushback. It 00:07:59.279 --> 00:08:02.019 was mostly they were upset about the process 00:08:02.019 --> 00:08:04.959 this was going to take. And I told them to trust 00:08:04.959 --> 00:08:10.079 the process. And they called them. They were 00:08:10.079 --> 00:08:11.519 worried about the dust. They were worried about 00:08:11.519 --> 00:08:14.279 the bugs. They were worried about typical, you 00:08:14.279 --> 00:08:16.720 know, if you ever watch Parks and Recreation, 00:08:17.060 --> 00:08:18.660 the types of people that show up to the city 00:08:18.660 --> 00:08:20.930 council meetings. I don't want a new park here 00:08:20.930 --> 00:08:22.990 because it's going to generate dust and noise 00:08:22.990 --> 00:08:24.750 and kids playing basketball and all this stuff. 00:08:25.149 --> 00:08:27.389 So you'd rather have a ditch there. You know, 00:08:27.769 --> 00:08:29.910 the residents don't think that way. They just 00:08:29.910 --> 00:08:32.149 they know what they have. They don't want it 00:08:32.149 --> 00:08:35.970 to change. So I get it. We had already had staff 00:08:35.970 --> 00:08:39.029 approval or sorry, recommended staff approval 00:08:39.029 --> 00:08:42.149 by that point. So I really wasn't even worried 00:08:42.149 --> 00:08:44.330 then. I would have been worried, let's say, if 00:08:44.330 --> 00:08:47.090 I were going from residential to public space. 00:08:47.289 --> 00:08:50.090 because I'm fucking the trends of the entire 00:08:50.090 --> 00:08:53.309 street and I'm not being cohesive to what the 00:08:53.309 --> 00:08:56.409 neighborhood already has. So I think that being 00:08:56.409 --> 00:09:01.210 said, I didn't have a lot of angst. It was frustrating 00:09:01.210 --> 00:09:03.889 to get there though. So originally I had a 23 00:09:03.889 --> 00:09:07.710 -home plot or scheme worked up for town homes 00:09:07.710 --> 00:09:10.370 that was nixed. By the way, every time you do 00:09:10.370 --> 00:09:13.070 that, it's two weeks. So you apply, you send 00:09:13.070 --> 00:09:15.750 in your map. You say we'd like to get this waiver, 00:09:15.929 --> 00:09:19.309 we'd like to get this, and then they essentially 00:09:19.309 --> 00:09:21.330 have a week to review it. So you send it in, 00:09:22.710 --> 00:09:24.409 the deadline hits, let's say it's a Tuesday, 00:09:24.490 --> 00:09:26.470 you send it in by Friday, they have a full week 00:09:26.470 --> 00:09:27.970 to review it, and then they have three days to 00:09:27.970 --> 00:09:30.470 get it back to you. So it's not quite two weeks, 00:09:30.490 --> 00:09:31.870 but usually you're not going to wait until the 00:09:31.870 --> 00:09:33.970 11th hour to submit it. So you're going to submit 00:09:33.970 --> 00:09:35.909 it Monday and get it back the following Friday. 00:09:36.590 --> 00:09:39.870 So you lose a lot of time. And then if you're 00:09:39.870 --> 00:09:41.789 beholden to your engineering team, thankfully 00:09:41.789 --> 00:09:45.620 I have phenomenal engineering team. Jeff Thompson 00:09:45.620 --> 00:09:48.440 at Taney engineering in Las Vegas is just second 00:09:48.440 --> 00:09:51.019 to none and it's why this project happened in 00:09:51.019 --> 00:09:53.440 six months and not 12 months or 18 months because 00:09:53.440 --> 00:09:55.659 they're just he and his assistant are on the 00:09:55.659 --> 00:09:59.279 ball and the whole firm is on the ball and I 00:09:59.279 --> 00:10:01.960 think that's why yeah pretty phenomenal team. 00:10:03.019 --> 00:10:05.860 So they also got on zoom calls with the city 00:10:05.860 --> 00:10:08.159 of Henderson with us I mean they were there with 00:10:08.159 --> 00:10:09.700 us and this wasn't a commercial for them but 00:10:09.700 --> 00:10:12.179 I just couldn't have done it without them and 00:10:12.179 --> 00:10:13.940 it was owner I mean, it was, like I said, it 00:10:13.940 --> 00:10:16.200 was several months of, okay, now the city wants 00:10:16.200 --> 00:10:18.379 to get on its own call with public works and 00:10:18.379 --> 00:10:20.879 with traffic. And I'm sitting here going, there's 00:10:20.879 --> 00:10:25.740 15 to 16 city executives over a six home, well, 00:10:25.779 --> 00:10:27.940 at that time it was eight, over an eight home 00:10:27.940 --> 00:10:30.940 subdivision. And my engineering team is there 00:10:30.940 --> 00:10:32.919 as three of us. I think you were on that call 00:10:32.919 --> 00:10:36.139 at one point. So two people from Trust, three 00:10:36.139 --> 00:10:38.240 people from Taney Engineering, 15 people from 00:10:38.240 --> 00:10:40.679 the city of Henderson, all in a team's call. 00:10:40.889 --> 00:10:42.809 In fact, the Henderson people were in a boardroom, 00:10:42.809 --> 00:10:44.769 remember, and then we were just on a screen watching 00:10:44.769 --> 00:10:49.049 them with our faces up there. Yeah. Okay, this 00:10:49.049 --> 00:10:51.309 seems like a lot of pomp and circumstance for 00:10:51.309 --> 00:10:53.590 an eight -home subdivision, but you had that 00:10:53.590 --> 00:10:55.870 traffic pipe in and fire pipe in and sewer pipe 00:10:55.870 --> 00:10:59.289 in and public works pipe in and ecology pipe 00:10:59.289 --> 00:11:01.970 in and zoning and planning commitments. All these 00:11:01.970 --> 00:11:04.470 things had to pipe in on it. So I definitely 00:11:04.470 --> 00:11:12.590 understand. Yeah, it was wild. So that being 00:11:12.590 --> 00:11:15.610 said, I did want to kind of, you know, one of 00:11:15.610 --> 00:11:18.129 the benefits of doing this on this format would 00:11:18.129 --> 00:11:21.309 be that we could kind of show the screen and 00:11:21.309 --> 00:11:23.610 kind of get an idea of what I was up against. 00:11:24.110 --> 00:11:26.690 So I did want to go ahead and show the audience 00:11:26.690 --> 00:11:29.049 that. So I'm going to share my screen. Alright, 00:11:29.049 --> 00:11:32.429 so here's the site and I believe we've shared 00:11:32.429 --> 00:11:34.370 this in the past and I've certainly shared it 00:11:34.370 --> 00:11:38.509 on social media if anyone follows me there. This 00:11:38.509 --> 00:11:41.299 is Horizon Ridge. And then this was the parcel 00:11:41.299 --> 00:11:44.860 right here. This is a mountain. So we didn't 00:11:44.860 --> 00:11:47.100 disturb the mountain. We kept the mountain intact. 00:11:47.360 --> 00:11:49.500 But we also lost the square footage, right? So 00:11:49.500 --> 00:11:52.259 when we deal with the city, everything's about 00:11:52.259 --> 00:11:54.840 minimum lot sizes and minimum common area spaces. 00:11:55.019 --> 00:11:57.799 I'm sorry. We have two unique common area spaces 00:11:57.799 --> 00:12:00.460 and then six parcels. So we're going to have 00:12:00.460 --> 00:12:02.919 a total of eight. And then this will be annexed 00:12:02.919 --> 00:12:04.600 into the right of way. So here's our cul -de 00:12:04.600 --> 00:12:09.580 -sac. We're in RS6 zoning, so minimum of 6 ,000 00:12:09.580 --> 00:12:11.960 square foot home sites. So that was also the 00:12:11.960 --> 00:12:15.120 tricky part. So the smallest one has to be at 00:12:15.120 --> 00:12:17.899 least 6 ,000. So you can see we're kind of squished 00:12:17.899 --> 00:12:20.399 on this one because it's longer, but then this 00:12:20.399 --> 00:12:22.960 one's wider. So it's more than 6 ,000, but then 00:12:22.960 --> 00:12:25.940 you have minimum width that you want in order 00:12:25.940 --> 00:12:28.080 to build a product that's marketable. And then 00:12:28.080 --> 00:12:29.779 you didn't want this one to be too crazy. So 00:12:29.779 --> 00:12:32.720 it ended up just being a lot, right? It ended 00:12:32.720 --> 00:12:36.539 up just being a lot of work. to go back and forth 00:12:36.539 --> 00:12:39.639 considering we had about 15 to 20 different versions 00:12:39.639 --> 00:12:42.919 of this map and then we would submit something 00:12:42.919 --> 00:12:45.620 and they would say actually we want this landscape 00:12:45.620 --> 00:12:48.240 buffer to be here for sure this whole thing here 00:12:48.240 --> 00:12:51.299 is landscaping even though these are town homes 00:12:51.299 --> 00:12:53.960 and you're going to a lower intensity technically 00:12:53.960 --> 00:12:55.879 the books say you don't need it but they wanted 00:12:55.879 --> 00:12:58.340 it because again we're taking it out of their 00:12:58.340 --> 00:13:00.000 master plan so they could pretty much tell us 00:13:00.000 --> 00:13:02.990 whatever they want right okay if you do it we 00:13:02.990 --> 00:13:04.669 want this landscape buffer here well then we 00:13:04.669 --> 00:13:08.830 lost 10 feet of lot frontage here okay we don't 00:13:08.830 --> 00:13:10.389 want you to mess with this mountain otherwise 00:13:10.389 --> 00:13:12.490 you're gonna have to get a hillside overlay okay 00:13:12.490 --> 00:13:15.429 well you can see right here that's 21 000 square 00:13:15.429 --> 00:13:17.389 feet that's a quarter at the half of an acre 00:13:17.389 --> 00:13:20.690 of hillside that i lost i had just had to basically 00:13:20.690 --> 00:13:24.470 forfeit then they wanted this landscape buffer 00:13:24.470 --> 00:13:26.549 which we understood even though we weren't going 00:13:26.549 --> 00:13:29.110 from uh we weren't going to a higher intensity 00:13:29.110 --> 00:13:31.509 we were keeping the same intensity as the neighbors 00:13:31.799 --> 00:13:34.179 They wanted it on both sides. And then we lost 00:13:34.179 --> 00:13:37.360 20 feet total here. We lost all the square footage 00:13:37.360 --> 00:13:41.220 of this common element here. And then to add 00:13:41.220 --> 00:13:43.980 a little cherry on top, normally cul -de -sac. 00:13:44.120 --> 00:13:46.360 Check out this cul -de -sac, Chris. Look how 00:13:46.360 --> 00:13:48.620 small and modest that cul -de -sac is, right? 00:13:49.379 --> 00:13:54.519 That's 87 feet, roughly. This is 100 feet from 00:13:54.519 --> 00:13:58.120 end to end. So then it just cut this whole thing 00:13:58.120 --> 00:14:03.399 up. So we lost another... roughly seven feet 00:14:03.399 --> 00:14:07.159 this way and We kind of moved the street back 00:14:07.159 --> 00:14:09.580 this way to have seven feet. So we were we were 00:14:09.580 --> 00:14:13.840 too short and then the the road the little knuckles 00:14:13.840 --> 00:14:18.059 here was 43 they wanted 47 so we lost more square 00:14:18.059 --> 00:14:20.759 footage on lot six from lot five You can see 00:14:20.759 --> 00:14:23.779 where we started at Originally 23. Okay, then 00:14:23.779 --> 00:14:26.779 we'll go single -family. Okay, I can do 10 and 00:14:26.779 --> 00:14:32.129 I'll do 10 RS eight zoning, which is 4 ,000 square 00:14:32.129 --> 00:14:37.169 foot home sites. And I was off by 150 square 00:14:37.169 --> 00:14:40.750 feet on one of the lots, which was the whole 00:14:40.750 --> 00:14:44.370 reason why we could not go to eight. We had to 00:14:44.370 --> 00:14:48.629 go to six. So it was pretty wild when you think 00:14:48.629 --> 00:14:51.690 back and forth of what was going on and what 00:14:51.690 --> 00:14:55.070 the conversations were. But this is the scheme 00:14:55.070 --> 00:14:57.929 we ended up with. You've drawn the homes, right? 00:14:58.070 --> 00:15:00.230 You've drawn the homes to fit those envelopes. 00:15:00.570 --> 00:15:02.990 And you've got all the utilities laid out. So 00:15:02.990 --> 00:15:04.990 when they take a home away or when a home site 00:15:04.990 --> 00:15:06.909 doesn't work out, now you have to go back to 00:15:06.909 --> 00:15:08.330 the drawing board. You have to redraw the house. 00:15:08.429 --> 00:15:09.929 You have to relay it out. All the utilities have 00:15:09.929 --> 00:15:11.889 to come in at a different port. I mean, it's 00:15:11.889 --> 00:15:14.909 a big deal. It's a big deal. And it's heart wrenching 00:15:14.909 --> 00:15:17.610 because you think you've got a home. Start over. 00:15:18.070 --> 00:15:21.240 Yeah. Start over. Yeah. So it's okay. I have 00:15:21.240 --> 00:15:23.379 no, no regrets. It's going to end up being a 00:15:23.379 --> 00:15:26.200 great project. It's going to be probably our, 00:15:26.200 --> 00:15:29.299 uh, like maybe a 2027 delivery. So we're going 00:15:29.299 --> 00:15:32.259 to be delivering that with some other early 27, 00:15:32.639 --> 00:15:35.759 hopefully early 27, uh, 27. There'll be kind 00:15:35.759 --> 00:15:39.659 of the tail end of our Westridge subdivision 00:15:39.659 --> 00:15:42.320 and we'll probably be long gone out of serene. 00:15:42.379 --> 00:15:45.480 So we'll be kind of the way it worked. It just 00:15:45.480 --> 00:15:48.379 worked really, really well. Um, From a timing 00:15:48.379 --> 00:15:50.919 perspective, I'm excited about the product. Would 00:15:50.919 --> 00:15:53.320 I have loved to get eight in? Yeah, but they 00:15:53.320 --> 00:15:55.019 would have been smaller homes, smaller home sites. 00:15:55.080 --> 00:15:57.600 I would have been limited on my exit prices. 00:15:57.720 --> 00:16:00.419 I would have been limited on what I can do. And 00:16:00.419 --> 00:16:02.919 ultimately we have to remember that we're luxury 00:16:02.919 --> 00:16:04.879 home builders. As much as I would love to get 00:16:04.879 --> 00:16:07.759 into more of the middle market, ultimately we 00:16:07.759 --> 00:16:10.399 are luxury builders and this is going to be a 00:16:10.399 --> 00:16:13.700 luxury product. This is our wheelhouse and I 00:16:13.700 --> 00:16:16.500 find it. kind of comforting in that, that I know 00:16:16.500 --> 00:16:18.960 how to do the, I can deliver a luxury home and 00:16:18.960 --> 00:16:21.000 I know how to make a luxury home profitable. 00:16:21.159 --> 00:16:23.460 I know how to make a luxury market, I'm sorry, 00:16:23.580 --> 00:16:26.740 luxury project marketable and profitable. And 00:16:26.740 --> 00:16:29.500 the area can carry it. And the area can carry 00:16:29.500 --> 00:16:32.019 it. If you look at a one mile radius, you hit 00:16:32.019 --> 00:16:34.899 20 million dollar homes. You hit one million 00:16:34.899 --> 00:16:36.639 dollar homes within a thousand foot radius. I 00:16:36.639 --> 00:16:38.399 mean, literally the parcel next door to us is 00:16:38.399 --> 00:16:42.259 routinely in a million. It's not uncommon to 00:16:42.259 --> 00:16:45.580 get an over $1 million sales price in there. 00:16:46.100 --> 00:16:48.720 So I'm very encouraged. I would have loved to 00:16:48.720 --> 00:16:51.620 experiment and to take what we do as trust home 00:16:51.620 --> 00:16:56.740 builders into a more middle market product. And 00:16:56.740 --> 00:16:59.179 it didn't work out that way. Part of why there's 00:16:59.179 --> 00:17:01.039 a housing shortage are all these regulations. 00:17:01.320 --> 00:17:04.660 Honestly, we literally saw it happen. Some of 00:17:04.660 --> 00:17:07.000 those regulations were just things that the regulators 00:17:07.000 --> 00:17:09.009 wanted. They're not even in the books. They're 00:17:09.009 --> 00:17:11.970 not even technically a regulation. But a regulator 00:17:11.970 --> 00:17:14.250 told me that they wanted it. And because I don't 00:17:14.250 --> 00:17:16.829 want to die on that hill, the fire is like, no, 00:17:16.910 --> 00:17:19.309 we don't need a 100 foot cul -de -sac. Traffic 00:17:19.309 --> 00:17:22.230 didn't want it. They didn't care. It was a sewer 00:17:22.230 --> 00:17:24.670 truck that might need to get up there in 10 years. 00:17:24.930 --> 00:17:27.670 And he might have to back into one of the driveways 00:17:27.670 --> 00:17:30.490 to get out of there one time in 10 years. Maybe 00:17:30.490 --> 00:17:33.990 never. Or back out of the cul -de -sac and back 00:17:33.990 --> 00:17:37.390 onto Horizon Ridge. But no, the entire cul -de 00:17:37.390 --> 00:17:40.049 -sac, till the end of time, is going to be bigger 00:17:40.049 --> 00:17:43.809 now because of that one regulator. Is that a 00:17:43.809 --> 00:17:47.730 standardized code? No. There's not a single cul 00:17:47.730 --> 00:17:50.170 -de -sac that big in Las Vegas, in the metro 00:17:50.170 --> 00:17:53.549 area. This is going to be 13 feet bigger. It's 00:17:53.549 --> 00:17:56.690 pretty wild. But because of that, we lost... 00:17:56.690 --> 00:17:59.450 I mean, like I said, it's hard to bellyache when 00:17:59.450 --> 00:18:02.829 everything worked out, but it's still, you know, 00:18:03.009 --> 00:18:05.920 still kind of... Frustrating, but it's okay. 00:18:05.980 --> 00:18:07.339 Everything worked out. It's gonna be a great 00:18:07.339 --> 00:18:09.059 product. I'm very excited about it. I know the 00:18:09.059 --> 00:18:12.000 whole team's excited about it. The map, I haven't 00:18:12.000 --> 00:18:14.420 noticed the final action. My next step is to 00:18:14.420 --> 00:18:16.099 design the product that goes there. I didn't 00:18:16.099 --> 00:18:19.099 spend a ton of time. I drew about probably 10 00:18:19.099 --> 00:18:20.759 different houses over the course of the last 00:18:20.759 --> 00:18:22.319 seven months for that neighborhood thinking, 00:18:22.319 --> 00:18:25.039 okay, if we end up with this, let me just get 00:18:25.039 --> 00:18:27.500 excited about it. So I'm pretty close. I'll probably 00:18:27.500 --> 00:18:31.019 find one of those, three of those 10. that will 00:18:31.019 --> 00:18:33.960 work in there. And it'll be really exciting. 00:18:34.140 --> 00:18:36.099 The product is going to be great. It's going 00:18:36.099 --> 00:18:39.759 to have a 2027 delivery. So ideally, maybe the 00:18:39.759 --> 00:18:44.500 market comps are even better by then. So I probably 00:18:44.500 --> 00:18:47.279 will end up being very happy with the way everything 00:18:47.279 --> 00:18:50.000 played out, I would imagine. So we'll put the 00:18:50.000 --> 00:18:52.579 best product that we can on there and do the 00:18:52.579 --> 00:18:55.980 best we can do to make it a successful project. 00:18:56.559 --> 00:19:00.980 So overall, very excited about it. Still 23 townhomes. 00:19:01.000 --> 00:19:02.900 That's not in my wheelhouse. I mean I can do 00:19:02.900 --> 00:19:04.599 it, but I would have been a little nervous Do 00:19:04.599 --> 00:19:07.759 I what do do amenities start to matter more at 00:19:07.759 --> 00:19:11.619 that point do people want pools eight? Kind of 00:19:11.619 --> 00:19:13.900 yard spaces are they probably not looking for 00:19:13.900 --> 00:19:18.299 zero, but maybe they don't want you know a Massive 00:19:18.299 --> 00:19:21.079 yard or so and then HOA There's just a lot there 00:19:21.079 --> 00:19:22.859 was a lot of things, but I wanted to do it just 00:19:22.859 --> 00:19:25.319 to get out of our comfort zone It pushed me right 00:19:25.319 --> 00:19:31.019 back to my comfort zone, which is okay Wow It's 00:19:31.019 --> 00:19:33.059 going to be a great project. It's interesting 00:19:33.059 --> 00:19:35.640 to watch it in real time unfold where you think 00:19:35.640 --> 00:19:37.779 you have one and then you have the meeting and 00:19:37.779 --> 00:19:39.819 then everything has to change and then you get 00:19:39.819 --> 00:19:41.859 it redrafted and you think you have it and then 00:19:41.859 --> 00:19:44.539 you go to the meeting. So it's just interesting 00:19:44.539 --> 00:19:49.019 every time the municipalities get involved, we 00:19:49.019 --> 00:19:53.440 were pivoting to fit into the criteria or the 00:19:53.440 --> 00:19:56.799 expectations that they've set forth. Yes, exactly. 00:19:56.880 --> 00:19:59.440 and it's part of what makes it exciting though. 00:19:59.519 --> 00:20:01.839 I mean honestly and it's part of why the little 00:20:01.839 --> 00:20:03.759 parcels like this are still left for companies 00:20:03.759 --> 00:20:06.299 like ours because they're not easy to develop. 00:20:06.420 --> 00:20:09.839 Infill projects are not easy at all. Not to say 00:20:09.839 --> 00:20:11.859 that larger big master plans don't have their 00:20:11.859 --> 00:20:15.160 own set of their own basket of issues but it's 00:20:15.160 --> 00:20:17.539 not easy and then you don't get the capital behind 00:20:17.539 --> 00:20:20.440 them that the big projects get. They're not sexy 00:20:20.440 --> 00:20:23.980 to wall street. You can't lump it up as a syndicated 00:20:23.980 --> 00:20:26.299 investment as easily as you could say let's say 00:20:26.299 --> 00:20:30.500 a hundred whole subdivision in some of them you 00:20:30.500 --> 00:20:32.420 know that's easy to erase those funds and it's 00:20:32.420 --> 00:20:34.660 easy to pull the fire so this would be a challenge 00:20:34.660 --> 00:20:37.440 I mean this is what our business is it's a challenge 00:20:37.440 --> 00:20:41.119 to to get them you know to get city to see your 00:20:41.119 --> 00:20:43.660 your way just get the buyers to see your vision 00:20:43.660 --> 00:20:47.420 to get the company on board to get capital behind 00:20:47.420 --> 00:20:50.759 you all these things are challenging, but it's 00:20:50.759 --> 00:20:53.019 why there's not 101 companies in town that do 00:20:53.019 --> 00:20:55.539 what we do. So I'm grateful that it's challenging 00:20:55.539 --> 00:20:57.920 and we're ready for these challenges. We've had 00:20:57.920 --> 00:20:59.880 these challenges forever, so this is nothing 00:20:59.880 --> 00:21:03.839 new for us. But it'll be interesting. We definitely 00:21:03.839 --> 00:21:06.039 earned our grid on this one. We've never pulled 00:21:06.039 --> 00:21:10.799 something out of existing zoning and done it 00:21:10.799 --> 00:21:13.720 to this extent before. So we're about, I would 00:21:13.720 --> 00:21:17.559 say we're about 30 % through. the next 30 % would 00:21:17.559 --> 00:21:19.519 be all the land development, the physical work, 00:21:20.059 --> 00:21:23.500 and then the last 40 % of the houses. So that's 00:21:23.500 --> 00:21:26.200 the funny anecdote to think that as a developer, 00:21:26.359 --> 00:21:27.859 when you see homes come out of the ground, the 00:21:27.859 --> 00:21:32.779 developer is already about 65 % there. And it's 00:21:32.779 --> 00:21:35.519 right. It's true. The buyer coming in is the 00:21:35.519 --> 00:21:37.519 last 1 % of the equation. So when they're coming 00:21:37.519 --> 00:21:39.619 in and saying, this house isn't going to be done. 00:21:39.829 --> 00:21:42.410 nothing's been done. The place board's still 00:21:42.410 --> 00:21:44.869 missing lights. There were no utilities here 00:21:44.869 --> 00:21:46.910 about six months ago. You would have been camping. 00:21:47.529 --> 00:21:50.269 So I think a lot's been done. We're third quarter. 00:21:51.630 --> 00:21:55.029 Yeah, we're third quarter of 2025 today. And 00:21:55.029 --> 00:21:58.150 you just said this will be a turnover in 2027. 00:21:58.430 --> 00:22:04.349 So before you get there, stuff. We've talked 00:22:04.349 --> 00:22:07.289 about that numerous times. example to really 00:22:07.289 --> 00:22:09.869 point out how far in advance decisions are made 00:22:09.869 --> 00:22:12.849 prior to the home actually standing. Yes and 00:22:12.849 --> 00:22:16.450 what was set in stone long before a market shifted 00:22:16.450 --> 00:22:19.670 or long before and you know we had any data on 00:22:19.670 --> 00:22:21.109 what that year would even look like. I don't 00:22:21.109 --> 00:22:22.690 even know where rates of interest rates are going 00:22:22.690 --> 00:22:25.710 to be in 2017. I have no idea. Your guess is 00:22:25.710 --> 00:22:27.170 as good as mine. A year ago I would have thought 00:22:27.170 --> 00:22:31.970 we were in the low sixes. High five. Yeah. Didn't 00:22:31.970 --> 00:22:35.799 happen. Either way We're bullish on Las Vegas. 00:22:36.980 --> 00:22:41.759 60 ,000 people a year move here. 22 ,000 households 00:22:41.759 --> 00:22:45.099 are created every year, and about 13 ,000 homes 00:22:45.099 --> 00:22:48.079 are built, including multifamily. So we'll be 00:22:48.079 --> 00:22:55.039 OK as developers. It's just challenging. Yeah, 00:22:55.200 --> 00:22:58.160 it's not always kittens and rainbows. There's 00:22:58.160 --> 00:23:00.000 a lot of challenge and a lot of obstacles that 00:23:00.000 --> 00:23:02.960 we face to just kind of pull back the curtain. 00:23:03.160 --> 00:23:06.319 be plain about that. This is not what we expected, 00:23:06.440 --> 00:23:08.460 and obviously we have come to a place where we're 00:23:08.460 --> 00:23:10.039 excited about it and we know it's going to be 00:23:10.039 --> 00:23:14.839 great, but the pivot has happened again and again 00:23:14.839 --> 00:23:18.259 and again throughout Israel, so fair to share 00:23:18.259 --> 00:23:21.059 it. Thank you for being transparent, for sharing 00:23:21.059 --> 00:23:24.960 it. And let us know how you guys... about this 00:23:24.960 --> 00:23:27.299 forum. I'll be anxious to hear your feedback 00:23:27.299 --> 00:23:29.200 or to see what you guys think. Does this work 00:23:29.200 --> 00:23:31.640 as well for you or or how could we improve on 00:23:31.640 --> 00:23:34.200 it? We work with so many great people. So many 00:23:34.200 --> 00:23:35.940 behind the scenes like he was just talking about 00:23:35.940 --> 00:23:38.279 the engineer. We've got so many people that we 00:23:38.279 --> 00:23:41.180 can invite in to discuss other opportunity topics 00:23:41.180 --> 00:23:44.039 with. So hoping this becomes a forum we can do 00:23:44.039 --> 00:23:46.220 that in. I love it. Thanks again for joining 00:23:46.220 --> 00:23:49.380 us on another episode of Trust the Process podcast 00:23:49.380 --> 00:23:53.299 and we will see you next time. Thanks. Bye bye. 00:23:54.750 --> 00:23:56.849 Thanks for tuning into the Trust the Process 00:23:56.849 --> 00:23:59.910 podcast. Make sure to follow us on Spotify to 00:23:59.910 --> 00:24:02.349 stay in the loop with the latest insights, project 00:24:02.349 --> 00:24:04.890 updates, and everything in between. See you next 00:24:04.890 --> 00:24:05.150 time.