Land Banking

Before you invest in any parcel of land, you want to make sure that the following ten indicators are present.  The first five indicators are presented here, along with their application to the Antelope Valley.  Indicators six through ten will be published tomorrow.

10 Key Growth Indicators For Land Investment

1. Level, usable land – Located at the southwest edge of the Mojave Desert where it is bordered by the San Gabriel Mountains to the south and the Tehachapi Mountains to the north, the Antelope Valley covers an area of approximately 3,000 square miles. The Valley is predominantly flat and considered to be a high desert with elevations between 2,300 and 2,400 feet above sea level. The floor of the Valley consists primarily of alluvial deposits – materials deposited by rivers. Rocks in the region are predominantly granite and marble, and the soil type is predominantly loam – a combination of sand, silt, and clay in about 40-40-20% concentration. The floor of the Valley is very flat with only a few rock outcroppings called buttes. Most land in unincorporated Los Angeles County is zoned agricultural with the exception of Lake Los Angeles, Quartz Hill, Littlerock, and Llano which are zoned rural or urban residential. The ability to develop land may be subject to the requirements and restrictions of all applicable governing bodies.

2. Abundant water supply – The primary sources of water are: groundwater, surface water, and imported surface water. Groundwater is the primary source of water in the Antelope Valley. Prior to 1972, it provided more than 90 percent of the total water supply; after 1972, it provided between 50 and 90 percent. Groundwater is stored in the Antelope Valley Groundwater Basin and has an estimated capacity of 68 million acre-feet with a recharge rate of 31,200 to 80,400 acre-feet per year. The primary source of surface water is the Littlerock Reservoir with a capacity of 3,500 acre feet. The imported surface water arrives from the State Water Project (also known as the California Aqueduct). From the SWP, the Antelope Valley-East Kern Water Agency is contracted to deliver 160,000 acre-feet per year to the Antelope Valley.

3. Accessibility to freeway, train, air, etc. – The available means on transportation include: automobile, bus, railroad, and airplane. Automobile transportation is the primary means of transportation in the Antelope Valley as roads in the Valley are generally easy to navigate and efficient to use. There are several highways and freeways: Fwy 14 and Sierra Hwy heading north-south, and Hwy 138 heading east-west. For commuters without access to an automobile, there is the Antelope Valley Transit Authority. Formed in 1992, combining the efforts of the cities of Lancaster and Palmdale and Los Angeles County, the transit authority offers twelve bus routes covering most of the Valley from 60th St W to 170th St E between Ave H and Ave U. Railroad service includes the Metrolink, Southern California’s regional commuter rail service. The Metrolink has three stations in Antelope Valley – Lancaster, Palmdale, and Acton – all of which connect to the LA Union Station. Travel by airplane has been an important means of transportation in the Antelope Valley since the 1930’s. The Valley used to be dotted with numerous airports; most of which are now gone. The remaining airports can be grouped into two groups: small, private airports and large, commercial airports. The small, private airports have limited amenities and require permission to use the site. They vary in condition and suitability. Of the large, commercial airports, there are two: the General William J. Fox Field and the LA/Palmdale Regional Airport.

4. Adequate utilities for massive growth – In 2007, California produced 69.5% of the electricity it uses; the rest was imported from the Pacific Northwest (8.2%) and the U.S. desert southwest (22.3%). Natural gas is the main source for electricity at 45.2% of the total system power.

Electricity in Lancaster and Palmdale is provided by Southern California Edison Co. In 2007, SCE served the second largest number of consumers in California and sold 79,505,231 MWh at an average retail price of 14.11 c/kWh.

5. Educational system: primary through college- The Antelope Valley has a well established public education system from elementary school through college. At the college level, the Antelope Valley College serves 15,500 students, it is accredited by the Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges, and offers many associate degree programs like a registered nursing program, an airframe and power plant technician program, and an engineering program. At the high school level, the Antelope Valley Union High School District provides high school education to Lancaster and Palmdale and the surrounding unincorporated areas of Los Angeles County. At the elementary and junior high school levels, eight different school districts manage over 50 elementary and junior high schools.

Tomorrow, we’ll cover the remaining five indicators of growth that you want to find before buying land for investment purposes.