Investor Letter September 2008

September 2008

Dear Investor:

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

High Desert still has most affordable housing in state as recent decreases in home prices and mortgage rates have brought affordability into better alignment with income levels. And, local home sales pick up as prices level off with foreclosures accounting for 75 percent of sales in May. Banks are starting to dump properties at fire sale prices, spurring home sales to bargain hunters and first-time buyers at the middle- and low-end of the market, especially in areas with a concentration of distressed properties. Also, sales in July were up 16 percent from June and up 132 percent since July of last year. People are excited because they can actually go out and become homeowners and have an investment down the line – people can actually afford to purchase a home now.

Single female homeowners are on the rise in Victor Valley. The nationwide housing slump isn’t keeping adventurous single women from buying homes in the Victor Valley, reflecting a national trend of rising homeownership among single women. The prices are finally right for them to become homeowners. There is no point in paying rent when they want security for themselves and their children. There will be about 28 percent of all households headed by women in 2010 and the trend will continue to grow. This is the best home-buying opportunity in five years for people on a single income in the Victor Valley.

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.
High Desert.

Adelanto: Developers join Adelanto’s vision of new ambitions and higher standards. To make their investments in Adelanto pay off, the Lewis Group of Companies and Springfield LLC have made long-term commitments to enhance the city by developing charities. The Lewis Group’s plans include large-scale retail projects such as a Target at the Adelanto Towne Center on Mojave Drive and Highway 395, as well as the master-plan community of Rancho Adelanto on Desert Flower and El Mirage Road.

The sky is the limit for the Adelanto airpark – from horse pens to houses with hangars attached, the residential airpark zone has development opportunities, however the area needs infrastructure and the teamwork of its property owners for it to really take off. If these can be arranged, the southwest corner of Adelanto’s industrial park will create million-dollar properties. There is an increasing demand for small airparks near working areas. Adelanto hasn’t taken issue with the airpark yet, but it would be a boon to the Industrial Park area. It just needs public awareness to really take off.

Apple Valley turns 20 and yes there were apples – Apple Valley was famous for its fruit orchards.

Today, Apple Valley focuses on its future: Yucca Loma Bridge project received Caltrans approval and proposed funding. The four-lane bridge will connect Apple Valley Road and Green Tree Boulevard, crossing over the Mojave River and the BNSF Railroad. It will include widening Yucca Loma Road to four lanes and then continue north above Spring Valley Lake along Yates Road. It will then drop back down, straightening out a portion of Coad Road and ending with Green Tree Boulevard.

Apple Valley Airport expands. The region’s smaller airfield thrives in SCLA’s shadow. It is expanding with new hangers, new business partnerships and a large air show in the works. The airport is putting the finishing touches on two new buildings with 18 hangars each, which will easily be filled by a waiting list 65 people long. Pacific West Aircraft is considering staring operations locally. The airport now covers 804 acres, with just 15 percent developed. Much of the property must remain open land as a safety buffer, but there is room for continued growth.

Apple Valley gets more bicycle-friendly responding to public demand. And, little by little the bicycle lanes are the latest addition in the plans for new construction whenever there is roadwork done in areas planned to increase bicycle circulation.

Hesperia turns 20 with a celebration at the city’s new $4 million Hesperia Civic Park.

Fresh and Easy opened in Hesperia with another to be opened in Apple Valley -- no construction date has been set for the Apple Valley location. The El Segundo-based chain of gourmet markets is the new American arm of British-based supermarket juggernaut Tesco PLC. The company will release 250 new food products and has designed the store as a neighborhood market.

Phelan: With population growth in the Phelan and Pinon Hills area, the residents need a modern fire station. The new 6,996-square-foot-station will house the fire engine, ambulance and up to seven personnel. A separate 1.500 square-foot building will provide storage, and new driveways and parking will be constructed. Construction is scheduled to be complete in summer 2009.

Phelan’s retail growth continues with several retail buildings under construction. Kentucky Fried Chicken and Taco Bell have both applied for land-use permits and will be built on Sheep Creek Road near Phelan Road. There is also a 22,000-square-foot retail building a 15,000-square-foot underground parking area under construction on Phelan Road and Sierra Vista Road. Another proposal on Phelan Road will include one 12,000-square-foot retail building and two 5,000-dquare-foot buildings on two acres. Also coming to Phelan will be Rite Aid and a public library. A new AutoZone is also in the works.

Victorville: Bottling plant will not affect water bills – plant to use 1 million gallons of water a day, 60 percent to be reclaimed. The recently approved bottling plant at Southern California Logistics Airport won’t affect water bills or bring stricter conservation requirements for residents, according to city officials. Dr. Pepper Snapple Group’s manufacturing and distribution plant, which will produce 50 brands of beverages, is projected to use more than 1 million gallons of water each day, which is equal to roughly three times the amount consumed by the average user in one year. The nice thing about the bottling plant is that it doesn’t use all the water. It produces a significant waste stream the city can collect and use to irrigate the golf course or cool the power plant.

SCLA refueling company caters to exclusive clientele – catering to millionaire CEOs and the U.S. Military alike, Million Air refueling services at Southern California Logistics Airport celebrated its grand opening. As a fixed based operator, or FBO, the core of Million Air is aviation refueling and services such as loading and unloading cargo. But what sets them apart is the its outrageous customer service. While passengers benefit from Million Air’s amenities, the site really revolves around the pilot. While the clients go to Victorville to take care of business, the FBO essentially is a pilot’s home while he’s on the ground. The facilities include a pilot’s theatre, quiet rooms for sleeping, showers and a plush lobby and there is also a planning room. Million Air has more than 30 franchised locations around the world.

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