Sales Updates at Preston Lake in Harrisonburg, VA


Sales Updates at Preston Lake in Harrisonburg, VA
By Scott Rogers • July 19, 2010
An early rendering of an estate home to be built at Preston Lake. An early rendering of the Charleston Rowhouses to be built at Preston Lake. In the Beginning The news of Preston Lake first broke in October 2005. Here's an excerpt from the Oct 26, 2005 article from the Daily News Record: The southwest corner of the intersection at Massanetta Springs Road and U.S. 33 could become home to a development like no other in Rockingham County. The Hine Group LLC, a Virginia limited liability company, along with an affiliate entity known as Preston Lake LLC of Port Jefferson, N.Y., has contracted to purchase 145 acres of the Preston Farm properties, according to a statement prepared by The Hine Group LLC and Preston Lake LLC. Together, the entities plan to develop a mixed-use center, the statement says, which provides both residential and commercial functions on the site at Massanetta Springs Road and U.S. 33. Included in the proposed development would be 466 town homes and single family units as well as a commercial area that would have a "Main Street" appearance, the statement says. Sales by the Numbers Now, nearly five years later, progress is still being made at Preston Lake, but not at the pace that was originally anticipated. Certainly, the enormous changes in the financial markets and the housing market over the past five years have played a large role in the change of pace at Preston Lake. Let's take a look at residential sales at Preston Lake per the MLS... Per the data in the MLS (reflected above) there have only been seven single family home sales, but I believe the count is actually closer to twelve when including custom contract builds that may not have shown up in the MLS . It would seem that detached homes can be built at Preston Lake for anywhere between $350k and $900k. Rowhouse sales have certainly slowed down in 2010, but over the past three years have been selling between $300k and $550k. What's Available Now? There are currently 14 active (or under contract) listings in the HRAR MLS, priced between $299k and $814k. Five of these homes are under contract. The Big Picture Many developments of this scale (as close as Charlottesville) have failed over the past few years as housing markets faltered across the country. It is remarkable, and notable, that Preston Lake (slowly) marches onward. Construction on the commercial parcels has not yet begun at Preston Lake, partly due to a sluggish retail market across the country, and partly because the layout of the commercial area at Preston Lake still may be in flux as a result of the yet-to-be-fully-funded South East Connector Road. The developer of Preston Lake and its lender (Wachovia) are in the midst of legal proceedings, as described in the Mar 2, 2010 article from the Daily News Record: Preston Lake Homes and its developer, the Hine Group, filed claims against Wachovia in Rockingham County Circuit Court on Dec. 11 for breaking its loan contracts, according to the lawsuit. Preston Lake is seeking $32.4 million in damages for lost profit. Wachovia filed a counterclaim in U.S. District Court in Harrisonburg on Dec. 29. The Charlotte, N.C.-based bank is suing Preston Lake for $15.6 million in outstanding debt. Moving Forward So, what's next for Preston Lake? My best guess is that residential development will continue (slowly) and that commercial development will eventually take place. The retail development, however, will likely not take place until the economy improves such that retail businesses (independent and franchises) are looking to expand once again. If you have questions about Preston Lake, feel free to call (540-578-0102) or e-mail (scott@HarrisonburgHousingToday.com) me. My parents live at Preston Lake -- they built a cottage home when they relocated to the Shenandoah Valley -- thus I'm in the neighborhood quite a bit. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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