Preston Lake
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All Of The Developments On Boyers Road |
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 Have you heard about that new development on Boyers Road? There are quite a few of them!
Those are all of the major developments I'm aware of along Boyers Road - but who knows what else is to come along this increasingly busy corridor! | |
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Preston Lake Has A Swimming Pool! |
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 Check out the new swimming pool at Preston Lake! Preston Lake is located just east of the City of Harrisonburg in the Shenandoah Valley of Virginia and now features an enormous clubhouse with a fitness center, a lake with surrounding walking path, lots of beautiful and well maintained open space and a playground! Looking to live at Preston Lake? A four townhouse townhouse was just listed for sale (by me) located adjacent to the beautiful Village Green! Find out more here: 3297BatteryParkPlace.com Here's the new townhouse listing...  ...and here's the Village Green...  | |
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Get Excited! Preston Lake Is Getting A Pool! |
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 Preston Lake, located just east of Harrisonburg offers single family homes, townhomes, duplexes, a community center -- and soon, a pool! The fate of the planned pool was uncertain, as a recent version of the proffers for the neighborhood only required the developer to build a pool if two-thirds of owners voted to indicate that they wanted the pool to be built. Here's the official word that was sent out earlier this week to Preston Lake homeowners...
So, it seems that a pool will be built at Preston Lake!  Can't wait for a new home to be built at Preston Lake? Here are two homes available for sale in the neighborhood that are move-in ready...  3071 Vera Vista Path - learn more  3120 Preston Lake Boulevard - learn more | |
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Senior Living Facility To Be Built at Preston Lake? |
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 It looks like the triangular-ish portion of the Preston Lake mixed use development shown below outlined in red may end up being a senior living facility instead of simply an apartment complex.  The details of what exactly that would mean are not clear -- perhaps there will be services and amenities geared towards seniors? The Rockingham County Board of Supervisors approved the developer's request to waive a public hearing for this change as the land was to be used for a 168-unit multi-family apartment complex and now will be used as a similarly (identically?) dense senior living facility. Read more in the DNR article or download the updated master plan. | |
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New and Resale Options at Preston Lake |
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 view a larger image here Construction is moving right along at Preston Lake.
And, there are some resale, move-right-in, options as well, such as this home, which used to be the model home at Preston Lake...  Learn more about 3168 Preston Lake Boulevard. Explore all listings at Preston Lake here. | |
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Grading Under Way For For High End Apartments, Gas Station |
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 view high resolution photo here If you have drive by the intersection of Route 33 East and Stone Spring Road anytime recently you have likely seen the mass grading that is under way. In the photo above:
Flipping the view around to the other direction -- below is my understanding of the intended use of the space....  download a larger version of this photo here My understanding of this intended usage of this land is based on the Preston Lake master plan as shown below, updated as of December 2016....  The area that is currently being graded will include the area shown below surrounded by a dashed line. This will include 168 apartments in 12 buildings, as well as a clubhouse and pool.  Part of the land being graded in the aerial photo at the top of this post is intended to be used for future commercial development. Read more about the ownership of the land, and the apartments here. | |
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What is being developed at the corner of Stone Spring Road and Spotswood Trail? |
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 download a larger version of this photo here Just driving by, you might not realize the extent of the mass grading that is currently underway on the corner of Stone Spring Road and Spotswood Trail. The photo above should put it into perspective. This is a LOT of land that is being leveled and prepared for development. But for what, you might ask? A good chunk of it will be used for apartments, it seems -- and the balance for future commercial development. Below is my understanding of the intended use of the space.... download a larger version of this photo here My understanding of this intended usage of this land is based on the Preston Lake master plan as shown below, updated as of December 2016.... The area that is currently being graded will include the area shown below surrounded by a dashed line. This will include 168 apartments in 12 buildings, as well as a clubhouse and pool. Part of the land being graded in the aerial photo at the top of this post is intended to be used for future commercial development. So, who owns all of this land?
As it pertains to the 168 apartments.... "State Corporation Commission records list William Park of Charlottesville as the registered agent for Mid Town Square. Park is co-owner of Park Properties Management and president of Pinnacle Construction & Development Corp., which builds the apartments."The article went further to identify other complexes in this region that are owned and managed by Park's companies.... "Park's companies are behind two complexes in the area.Digging even further into my archives, I am finding that in the original packet for the proposed approval of the updated Preston Lake master plan (now approved) the engineer for the Preston Lake developer indicated that the apartment buildings are intended to be 2-stories in height. There are also quite a few additional details in that development packet as it pertains to proffers made by the developer when this updated master plan was approved. | |
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Preston Lake to feature 12 (smaller) apartment buildings instead of 1 (larger) building |
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The Rockingham County Planning Commission will consider a request on Tuesday for a further revision of the Preston Lake master plan. The most recently approved master plan showed one large 168-unit apartment building, and the new master plan will include 12 smaller apartment buildings, presumably with 14 apartments per building. Rockingham County is not required to hold a public hearing to obtain input from nearby residents because the changing the overall density of the community. Here's why.... BEFORE:
AFTER:
This is the affected portion of the master plan before the proposed change....
And here is the same section after the proposed change....
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Preston Lake Sales Update |
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 It has been a while since I posted a sales update on Preston Lake -- the area's largest (intended) mixed use community that was started just before the real estate boom, was foreclosed on, was purchased by a new developer, and now seems to be gaining some momentum. The pace of single family home sales jumped up quite a bit in 2015....  Sales of rowhouses - the original, large, upscale, ornate townhouses built by The Hine Group slowed (stopped) in 2015....  The new developer at Preston Lake launched several new townhouses concepts, which started selling in 2014....  Finally, a new "villa" product was launched in 2015 -- at the lowest price point (and size of home) yet....  Of note -- these sales (above) are all of the sales shown in the MLS. It is likely that there have been a few other sales direct from the builder/developer to buyer that are not reflected in the MLS. If you have questions about Preston Lake, check out their website, or email me (scott@HarrisonburgHousingToday.com). My dad lives at Preston Lake and I am over there quite a bit. | |
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Slow, Steady Progress at Preston Lake |
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 There were some interesting stats in the Daily News Record article earlier this week about Preston Lake ---
Read the entire Daily News Record article....  | |
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Townhouses at Preston Lake |
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 click the image for a larger version Kensington Model (22' wide): floor plans -- starting at $289,990 Manchester Model (24' wide): floor plans -- starting at $294,990 Townhouses are under construction at Preston Lake, anticipated to start in the $280K price range. I took a quick ride through Preston Lake yesterday to see how things are looking....  The townhouses have been delivered! Well, at least the walls have. The townhouses will apparently be built with pre-framed walls.  If you haven't already seen it, this is Preston Lake's model home.  The upgraded entrances to Preston Lake are certainly looking good.  There is even a new wall along Massanetta Springs Road that provides a bit more definition to the community.  Finally, construction is almost complete on the bridge across the end of the expanded lake. For more information about Preston Lake, feel free to email me at scott@HarrisonburgHousingToday.com or call me at 540-578-0102. | |
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Slightly Revised Preston Lake Proposal |
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 Slightly revised documents related to this evening's meeting for the proposed rezoning / expansion of Preston Lake.
Some notable items, some of which are changes, some are not.... There will be a divider between the apartments and the remainder of the community.
The quantity of each type of dwelling could change from this proposed plan.
The order and timing of the development each type of housing is unknown.
There has been some discussion of how Preston Lake would get to the point of having a community center and pool.
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Preston Lake developer seeks approval for expansion, higher density |
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 Preston Lake, a large mixed use development east of Harrisonburg began selling homes in 2008, was foreclosed on by Wells Fargo in 2011, and was then acquired by a developer out of Maryland in 2012. Tomorrow night, the developer will present a proposal to the Planning Commission and Board of Supervisors to make several changes to the community, including most notably:
[1] Proposed Addition of 336 Apartments As shown below, the corner of the property that is bisected by the new Southeast Connector Road is proposed to change from being single family homes and townhouses, to being two large apartment buildings.  [2] Proposed Addition of 76 Quads As shown below, the intended soccer field and walking trails are proposed to be replaced by 76 quads --- single level villas. The location of the park would then be adjusted as well. This expansion/revision utilizes a portion of the adjacent property already owned by the developer.  [3] Proposed Reconfiguration of Townhouses As shown below, the townhouses intended to be built along Massanetta Springs Road are proposed to be rearranged a bit, and expanded from 55 townhouses to 66.  [4] Townhouses and More Townhouses As shown below, additional townhouses are being proposed adjacent to the already expansive townhouse section that surrounds the large Village Green. This expansion/revision utilizes a portion of the adjacent property already owned by the developer.  [5] Expanded Single Family Home Section As shown below, an adjacent property owned by the new developer is proposed to be added into the overall Preston Lake development.  Here are some pertinent documents that I obtained from the County that will be presented and discussed at the public hearing....
If these changes to the Preston Lake master plan impact you, definitely plan to attend the Public Hearing tomorrow (Dec 18, 2013) at 6:30 PM to let your voice be heard. | |
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Preston Lake no longer underwater |
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 Preston Lake, a large (500-ish unit) mixed use development east of Harrisonburg began selling homes in 2008, was foreclosed on by Wells Fargo in 2011, and was then acquired by a developer out of Maryland in 2012. Here are a few updates of what has been happening since the new developer has taken over....
Take a drive through Preston Lake sometime soon to see the changes that are under way, and if you have questions, feel free to email (scott@HarrisonburgHousingToday.com) or call me (540-578-0102). Some Preston Lake reading material from the archives....
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Details of Sale of Preston Lake Subdivision |
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 The bulk of Preston Lake subdivision (mostly undeveloped building lots) was foreclosed on in 2011, but last week was purchased by a neighboring land owner --- a developer from Maryland. After some further research, here is what was conveyed:
Thus, if we ignore the fact that roads, water and sewer need to be installed on those 43.5 acres (outlined above in red), this was essentially the purchase of:
And here is a bit of context on the purchase price:
So, how much was paid for each lot? Well, let's assume that a single family home lots is worth twice as much as a rowhouse lot --- and that a finished lot (with infrastructure) is worth twice as much as a planned lot. If that were all the case, this new developer essentially paid:
If you refer back to the amount of debt that was foreclosed on ($20M) and compare that to the new purchase price ($2M) we can assume that the previous developer's lot basis was 10 times higher ($100K for single family home lots, etc). Stay tuned! UPDATE: After further review of the deed transferring the property from Wells Fargo, I am now noticing that the new developer has agreed to pay a "Subsequent Fee" to Wells Fargo of 2% of the gross sales price of any of their newly acquired properties (building lots or lots where they have built homes) when it closes. This only applies to transfers within the first five years. | |
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Preston Lake Acquired By Neighboring Property Owner (Development Company from Maryland) |
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 According to a letter from Brian D. Goldstein, Vice President if Development for NAI The Michael Companies, the residential property at Preston Lake has been sold by Wells Fargo to a new entity known as MLK Preston Lake, LLC. A letter, excerpted below, was sent to current Preston Lake homeowners yesterday.... It is with great pleasure that I am writing this letter on behalf of MLK Preston Lake, LLC, the new owner of the Preston Lake Residential property. Being already invested in and committed to the success and vitality of the area through ownership of a portion of the adjacent commercial property, we look forward to reinvigorating the Preston Lake Residential development with this acquisition. We are confident that the existing homeowners in the neighborhood, Rockingham County officials, and the entire surrounding community will be very pleased with the quality and expertise that we will bring to Preston Lake.This excerpt from their web site speaks to the development background of the NAI Michael Companies, based in Lanham, MD.... Kenneth H. Michael, founder and Chairman of the Board of NAI Michael, created a Development Consulting Division to assist landowners and developers through the then increasingly complicated permit approval process. Over the years, as the approval process has become even more complex, time consuming, and technically demanding, NAI Michael's Development Consulting Division continues to stay abreast of the changes and requirements associated with the development process.The Michael Companies also seems to be amidst the development of a $900 million, 382-acre, upscale mixed-use community in Prince George's County. While The Michael Companies might be an out of town (out of state!) development company, they are no stranger to the Harrisonburg and Rockingham County area -- nor the general vicinity of Preston Lake. Over the past several years they have purchased a variety properties surrounding Preston Lake including (but not limited to) those outlined on the map at the top of this post. For a bit more context (and history) of Preston Lake, consider reading....
And, if you're excited about the reinvigoration of Preston Lake, you might want to buy my parents' house in Preston Lake....
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Updates on Preston Lake Subdivision |
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 If the development of Preston Lake had taken place just five years earlier, it might have been a much greater, faster, happier success story. Given its timing, however, Preston Lake was developed and constructed at a very slow rate, which recently reached a significant milestone when Wells Fargo foreclosed on the remaining developed lots at Preston Lake. Why did it happen? It could have been the decline in the housing market....or the decline in the national economy....or that the developer's bank (Wachovia) went out of business....or many other reasons. Regardless of the cause, the development and construction of Preston Lake was much slower than anticipated, and is now in a state of limbo. Here's a re-cap of where things are at Preston Lake, with a few bits of new information: Homeowners Association: The Preston Lake Homeowners Association is still controlled by the developer, which is now effectively Wells Fargo. For now, however, the on-the-ground association management is being handled by a Harrisonburg-based association management company, and thus far it does seem as if any services to residents will be interrupted, nor will dues increase. Ownership of the Land: The undeveloped residential lots all transferred to Wells Fargo (or REDUS VA HOUSING, LLC as it appears at the courthouse). Read more. Ownership of the 4 rowhouses: Most people attending the foreclosure auction were surprised to hear the announcement that morning that separate from the auction of all of the undeveloped lots, the bank would be auctioning off four rowhouses at various states of completion. Since potential bidders were not prepared to consider purchasing a rowhouse, all four of these properties were bought back by Wells Fargo. Further details follow....
 Southern Classic, Inc: The company that purchased the three yet-to-be-finished rowhouses seems to be a company based out of Crozet/Charlottesville. Presumably, Southern Classic will be finishing the rowhouses and offering them for sale. Southern Classics is an Earthcraft certified builder, and is involved in developing several smaller communities including:
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Preston Lake Foreclosure Finalized: Land Transfers To Wells Fargo, Homeowners Association |
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 An early rendering of the intended Preston Lake community center A variety of documents were filed at the Rockingham County Circuit Court on Wednesday, February 23, 2011 finalizing the Trustee Sale of Preston Lake subdivision. In Summary: A trustee sale took place on February 3, 2011 on the steps of the Rockingham County Circuit Court, whereby Wells Fargo (as the only, and thus highest, bidder) contracted to buy back Preston Lake from its developer. Now, the deeds have been recorded transferring the bulk of the subdivision to Wells Fargo and the common areas to the Homeowners Association. The Value of 124+ Acres: The consideration paid by Wells Fargo for the 124+ acres was $3,500,000, but the trustee's deed also indicates that the appraised value is/was $4,530,000. Somewhat astonishingly, the two loans (notes) that were being foreclosed on appear to have been for a sum total of $20,500,000. The New Owner of Preston Lake: The grantee on the deed is listed as "REDUS VA HOUSING, LLC" -- an LLC registered in Deleware. The grantee's address, however, is Wells Fargo Bank out of Jacksonville, Florida. Value of the Common Areas: Per the deed transferring the common areas to the Homeowners Association, the common areas have an assessed value of $323,700.  What Conveyed To The Homeowners Association: The map above is based on an early engineering plan for Preston Lake. I have deciphered (to the best of my ability) the deed, and recorded plats for Preston Lake to mark on the map (letters in circles) the areas that conveyed the the Homeowners Association. Click on the map for a high resolution PDF, and scroll to the bottom of this post for the source files for the deed and plats. Management of the Homeowners Association: The Homeowners Association's mailing address is referenced in the deed as the same Jacksonville, Florida address for Wells Fargo. Homeowners at Preston Lake have been informed that Wells Fargo will be hiring an association management company in the very near future to handle the business of the association. What's Next: Now that the remaining land comprising Preston Lake is owned by Wells Fargo, my assumption is that:
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Preston Lake Foreclosure Auction Results In $3.5M Sale To Wells Fargo |
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The Preston Lake Trustee Sale took place today (February 3, 2011) at noon, and drew quite a crowd of Preston Lake homeowners, developers, attorneys, Realtors, and neighboring landowners. Here's an overview of where things stand.... Local History in the Making: It's not necessarily the good type of history, but this was the first major subdivision --- and hopefully the last --- to be foreclosed on in the Harrisonburg area. Many other areas across the country have seen multiple large subdivisions be foreclosed on, but until today, Harrisonburg had been unscathed. The timing of the development of this subdivision is likely what led us to today's events, as the development began just as the housing market began to slow dramatically. Only One Registered Bidder: Only one individual registered as a potential bidder at the sale (by showing his deposit check to the Trustee, and providing his name), though he did bid during the auction, likely because of the opening bids from Wells Fargo. Only One Actual Bidder: There was only one actual bidder....Wells Fargo. Surprise Rowhouse Auctions: In addition to the 120+ acres of land at Preston Lake that were auctioned off today, four rowhouses were also auctioned separately. This was not specifically advertised -- if it had been, I think we would have seen some actual bidding take place. Each of these rowhouses are at a different stage of completion, but each at least has the shell completed. The opening bids from Wells Fargo were as follows, and these are the prices at which they are taking back the properties:
The Common Areas: The attorney representing Wells Fargo also indicated that the common areas would be deeded to the Property Owners Association. The Association will still exist, and owners will still make payments to it to support the maintenance of the common areas and other common amenities of the neighborhood. What Happens Next: In theory, within 30 days, Wells Fargo will close on their purchase of the four individual rowhouses, and the 120+ acres of Preston Lake. The attorney representing Wells Fargo commented to me afterward that he thinks there is a 90% chance that the sale will proceed to closing and that Wells Fargo will be the new owner. After Wells Fargo owns the property, he indicated that they would sell the four rowhouses individually, and seek to sell the remaining 120+ acres to a new developer. It is unclear what price they will ask for the remainder of the subdivision (likely lower than $3.5M), and it is unclear what price they will eventually take for the remainder of the subdivision (likely lower than $3.5M). Wells Fargo's attorney also indicated that while they will attempt to sell the entire undeveloped section of Preston Lake as a whole to one developer, it is also possible that they would sell the property as individual lots or sections of lots. Wells Fargo has done this with other subdivisions around the country that they have foreclosed on, though it is not their goal. Wells Fargo is interested in money: This should come as no surprise, but Wells Fargo's goal in being the new owner of the undeveloped areas of Preston Lake are to try to recoup as much as possible of the money that they have invested in the subdivision. They won't, thus, try to unload the property for development into a mobile home park -- they will be marketing it and working to sell it for its highest and best use. This does not mean that the development plan won't or can't change -- but they will be trying to recoup as much money as possible, and thus will be trying to sell it to a developer who has the a positive (and profitable) vision for it. Those Pesky Lawsuits: The developer of Preston Lake (Richard Hine) had filed a lawsuit against Wachovia (now Wells Fargo) --- and Wachovia had responded with a countersuit. Per the attorney representing Wells Fargo, both of those lawsuits will go away once the sale closes, and the property is taken back by Wells Fargo. A Community United: If anything, the turmoil and uncertainty over the future of Preston Lake seems to have drawn its residents closer together as a community. Most of the owners were in attendance at the sale, and then went as a group to Cally's afterward to have lunch. There seems to be solidarity and general optimism (as much as is possible) amongst most (or all) of the owners. They still seem to thoroughly enjoy their homes, and each other, which is a positive sign for the future of the community. Have Questions? If you have questions about Preston Lake or the foreclosure proceedings, I'm happy to try to answer them (540-578-0102, scott@HarrisonburgHousingToday.com), or you can contact Peter Barrett of Kutak Rock, LLP, who is the attorney representing Wells Fargo. You can reach Mr. Barrett at 804-343-5237 or peter.barrett@kutackrock.com. | |
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Preston Lake Headed To Foreclosure? |
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 Per a Trustee Sale advertised in today's Daily News Record (view ad), the bulk of the Preston Lake subdivision may be headed to foreclosure. This doesn't necessarily mean that the foreclosure sale will take place, but this is a significant step in that direction. Preston Lake is Harrisonburg and Rockingham County's first master planned community, intended to include nearly 500 townhomes and single family homes, a large section of retail stores with a main street appearance, and many amenities such as a community center, soccer fields, swimming pool, and more.  The vision....  Main Street renderings  Amenities at Preston Lake Now, however, all of those plans may be coming to an end, at least for now. On February 3rd at 12:00 p.m., 124.693 acres of Preston Lake is scheduled to be auctioned at the Rockingham County Circuit Court. Please note that an advertised trustee sale (all that has happened thus far) does not necessarily mean that the foreclosure process will take place. This wasn't the first sign of trouble for Preston Lake, as the developer of Preston Lake and its lender (Wachovia) have been in the midst of legal proceedings for almost a year now, 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. While it was happening quite slowly, residential construction at Preston Lake had been continuing even over the past year. Since the first closing in 2008, there have been 37 sales at Preston Lake recorded in the HRAR MLS, ranging from $318k to $883k, with a median price of $421k. Three of these sales took place as recently as the fourth quarter of 2010. Today, only four properties are being marketed for sale at Preston Lake per the HRAR MLS -- three are resale properties, and one is being sold by the developer. (view active listings at Preston Lake) A few notes about the foreclosure sale:
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
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