Investor Letter July 2009

July 2009

Dear Investor:

This Investor Newsletter is, as those sent before, to keep you informed about the ongoing and fast paced growth in Victor Valley.

Investor Nine Newsletter - Train from Disneyland to Las Vegas gets boost – plans for a levitating train from Las Vegas to Disneyland can move forward under a transportation bill signed by President Bush. The train would use magnetic levitation technology to carry passengers from Disneyland to Las Vegas in well under two hours, traveling at speeds of up to 300 mph. It would be the first MagLev system in the U.S. AND NOW THIS: Nevada Gov. Jim Gibbons and California Gov. Arnold Schwarzenegger have agreed to move ahead with the high-speed train project. The train should be a candidate for federal economic stimulus money. The rail line, which would generally follow the route of Interstate 15 and cost $12 billion to $13 billion, would create construction jobs in both states and, once complete, speed the arrival of tourists to Las Vegas. The train would require a new set of “rails” – the train, suspended above the track by magnets, rides on a cushion of air. A competing proposal for a faster train between southern Nevada and Southern California would use conventional rails. That privately funded line would, however, run between Victorville, and Las Vegas.

Victor Valley: Extreme Makeover: Home Edition features a family here in Victor Valley. The reality show centers on dramatic home renovations for deserving families. The show is seen in 69 countries with a potential audience of 1 billion viewers. The world will know about Victor Valley and the communities that call it home.

Bargains brought many first-time home buyers who bought homes in December, 2008, pushing sales of existing homes up by 17% for the month of December and 207 % compared to a year ago. The big draw is more affordable homes as Victor Valley prices dipped 5.5% for the month. When final statewide figures are in, annual sales in the California housing market are expected to increase 12% for 2008, with a further 12.5% annual increase projected for 2009.

Victor Valley to benefit from more county services in 2009 with boosts to public safety and public parks planned. There will be a new government center in Hesperia and dozens of public works projects slated for completion in 2009. The top priority is to bring employers, trade and infrastructure that will attract more of the same to the Valley. Regional transportation improvements and improving roads remains a top priority to accommodate the growing population.

Adelanto: The city is working on plans to build more parks and recreational facilities as well as recruit more retail in 2009. The Adelanto Gateway Logistics Center, which could employ up to 4,000 people in 7 million square feet of distribution and warehouse centers across the street from Southern California Logistics Airport, is on schedule. The infrastructure improvements are scheduled for completion in 2010, but the lots will be built upon user demand and there is no set time for when the area will have buildings.
Apple Valley: The town’s budget was given a clean bill of health when an independent auditor presented Apple Valley’s 2007-08 fiscal year Comprehensive Annual Financial Report. The audit showed no areas of non-compliance or suggestions for adjustment in how the town is accounting for its finances. The town should once again qualify for federal recognition for excellence in financial reporting.

Apple Valley is also welcoming retail and entertainment offerings while expanding the civic infrastructure. The focus is on quality projects, not so much on quantity like some of the surrounding communities. The Town sets its standards higher and that continues to set Apple Valley apart as the most upscale community in Victor Valley.

New Red Robin restaurant, which has opened in the Jess Ranch Marketplace brings 100 jobs to local residents.

Barstow: An investment group is hoping to develop land in Barstow into a possible resort destination. The Texas-based Buyer Group International, Inc. announced that it has entered into a joint venture to develop 40 acres of property along the Interstate 15 corridor. The exact location has not been announced but is being described as within Barstow’s outer city limits.

Los Coyotes Band of Cahuilla and Cupeno tribe is still pursuing a Barstow casino. The tribe is hopeful that the U.S. Department of the Interior will put land in Barstow into a federal trust to be used for a casino. Placing the land into the trust is a necessary step before the tribe, whose reservation is in San Diego County, can move forward. Because the tribe’s reservation is so remote, there are very few members living on the reservation. More of them live closer to Barstow and that is the reason the tribe is seeking an off-reservation casino.

Hesperia: Hesperia has apartment boom, 160 new units expected by year’s end. While new single-family housing construction has slowed to a trickle, with only a dozen new permits request in 2009, Hesperia is experiencing an apartment-building boom, with 64 individual apartments built so far and 89 more expected to be completed by ear’s end. The reason for the boom is simple, the funding is there and the projects have been in the works for a while. Developers can get government financing intended to make more affordable housing available when they build multifamily housing. To get redevelopment funds Hesperia uses to pave roads and help businesses in the city, it has to hit certain targets for affordable housing, including having units available for very-low-income, low-income and moderate-income renters.

Victorville: Charter school to begin construction at SCLA – Southern California Logistics Airport. Construction of the $8.5 million campus on 10 acres will begin in January. Southern California Charter School is a middle and high school slated to open in July.

Planes transformed at SCLA. Northwest planes converted to Delta after merge and steps toward the creation of the world’s largest airline are underway at SCLA, as the first Northwest Airlines planes exchange their signature red tails for Delta Air Lines blue.

A new $12.5 million contract to paint planes for Air Canada will increase job security for the Leading Edge Aviation team. More than 100 planes will be painted over the next three to five years. This includes regional and intercontinental aircraft, from Airbus A319s to Boeing 777s. This agreement with Air Canada will keep the airline-painting hangars full well into the next decade, fueling steady employment for more than 200 workers.

Dr. Pepper Snapple now taking applications and plans to hire about 200 including a plant maintenance manager, machine operators, production supervisors, forklift operators and others. The building now under construction at SCLA will be a $120 million warehouse facility. When completed, the plant will consist of an 850,000-square-foot building on 57 acres, including 550,000 square feet of warehouse space, and a 300,000-square-foot manufacturing plant with up to six manufacturing lines. It is expected to open in 2010 and will produce as many as 40 million cases of beverages each year. The DPS plant at Southern California Logistics Airport is part of the 8,500-acre master planned hub.

For the serious investor looking for bank owned properties, there is an opportunity to purchase several properties by bundling them and purchasing at a lower (possibly at auction prices) from the individual banks. These properties need to be sold by the same bank, they cannot be properties bundled which are owned by different banks.

Whether you are a builder, developer, or investor, Victor Valley provides a great opportunity for profitable real estate ventures. With jobs, people relocate and need housing – not all will be able to buy their own homes. Now is the time to seriously consider purchasing rental property. Invest in your future. Now is a great time to buy.

I would greatly appreciate the opportunity in helping you select the right rental, commercial and industrial properties and also, in selecting any vacant land that you may need to strengthen your investment income and further your retirement dreams.

Sincerely,

Pamela Suzanne Johnson, REALTOR®
My Finger Is On The Pulse Of Real Estate.
Cell - (760) 646-3631