Silverbridge Oaks, Redding, California

In December 2002, Peterson Economics was retained to complete a preliminary market analysis evaluating development potential for Silverbridge Oaks, a proposed new 670-acre residential community near Redding, California. Silverbridge Oaks would be situated on an attractive, wooded site about ten miles east of Redding, in the affluent community of Palo Cedro. While the preliminary land plan calls for the property to include 320 homesites, in addition to an 18-hole regulation-length golf course, the client requested that Peterson Economics’ research evaluate the possibility of developing the project either with or without golf. Non-golf options could include large tracts of preserved open space, and possibly an equestrian or central recreation (pool, tennis, etc.) component.

In this case, our client secured an option to purchase this land prior to retaining Peterson Economics, and then asked Peterson Economics to complete a preliminary “memo-style” analysis prior to making a final decision whether to purchase the property. In order to complete this analysis, Peterson Economics focused on the following research tasks:

1. Examining the subject site from a marketing perspective, focusing on access, setting, views, topography, vegetation, local school quality, and proximity to shopping and medical facilities.
2. Examining key regional characteristics and trends that would impact future demand for new homes and golf at the subject site (population, demographics, visitation, climate, etc.).
3. Examining economic conditions and trends, along with population/demographic trends, in the San Francisco Bay Area, the key source market for retirees moving into the Redding area.
4. Examining the Redding area residential real estate market, focusing on higher-end communities and demand from affluent local area residents and retirees moving into the region (primarily through detailed interviews with top brokers and builders in the region).
5. Examining the Redding area golf market, focusing on higher quality 18-hole golf courses (completing detailed interviews with directors of golf at top area courses).
6. Reviewing the findings of a previous feasibility analysis (conducted by another consulting firm) of the Silverbridge Oaks project.

Peterson Economics also reviewed recent findings from relevant analyses in Central Oregon, Klamath Falls, Medford and elsewhere, and relied on its industry experience regarding the development of attractive new master-planned communities in other settings comparable to Redding.

Peterson Economics’ key findings, conclusions, and recommendations were summarized in a concise report, providing the client with a clear summary of the region’s economy, demographics, visitor market, residential real estate market, and golf market, along with preliminary development recommendations, market positioning recommendations (including pricing recommendations for both real estate and golf), and financial projections.

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