Speculative residential construction given up for dead when the northern Nevada homebuilding market cratered may be stirring just a bit in Carson City.
Construction has resumed at the stalled Capital Village subdivision in the southeast corner of Carson City, and early sales activity leads veteran building and developer Rob Fitzgerald to believe he may be able to justify couple of houses in standing inventory.
Of course, Green Matrix LLC, is financing the project itself, so the company doesn't need to convince a lender of the wisdom of building a handful of homes before they're contracted for sale. Green Matrix is owned by Fitzgerald and Stephen Hoff.
Capital Village was launched by Landmark Homes and Development, a Carson City company that's operating under Chapter 11 bankruptcy protection.
The project had been stalled for about a year, Fitzgerald said last week. It includes seven homes that were partially completed and 47 lots that are ready for construction.
Because Green Matrix purchased the subdivision at a bargain price after Landmark Homes' bankruptcy filing, it's also able to sell homes well below their previous price point.
A model that Landmark was selling for more than $300,000, for instance, now is offered at $224,900.
"We make some money at these prices," Fitzgerald said. "Nobody is getting rich, but we're making money."
Northern Nevada Homes LLC, a company managed by Fitzgerald, is the general contractor. John Wolf of Trans-Action Realty Inc. in Reno is the broker of record.
Fitzgerald said last week that three of the seven homes that were nearing completion before Landmark shut down the subdivision currently are under contract.
That's probably enough activity, he said, to justify construction of a couple of spec houses to meet the needs of buyers who want to close quickly.
The developers target the first-time home market with houses priced from $189,000 for a 1,369-square-foot model. The most expensive floor plan is the 1,848-square-foot model priced at $224,900.
Green Matrix is trying to further jump-start sales with upgraded countertops and floors or assistance to buyers with their closing costs.
"We've got the opportunity to build and sell at a price that competes with REOs (bank-owned properties) and foreclosures," Fitzgerald said.
The developers say Capital Village, part of the master-planned Quail Run community, is the only residential subdivision in Carson City where construction currently is under way.
"The idea of a vibrant community like Carson City not having a 'new home' option didn't sit well with us," Hoff said.
