Sage Ranch is a real estate community of 995 exceptionally located entry-level homes in the heart of Tehachapi Valley, a community located in southern California with 38,000 residents, just 30 miles from Los Angeles County and 80 minutes from the City of Los Angeles.

All of the key infrastructure facilities for the residents of the Tehachapi valley are located either immediately adjacent or at a maximum, a six-block walk from the Sage Ranch Master Planned Community. Key assets include the only public high school for the entire region, which is located right next to the east boundary of Sage Ranch, an elementary school on the western boundary of Sage Ranch, and the middle school, a two-block walk to the north. The historic downtown, city hall, police, fire, and ambulance are all located within a six-block walk.

Sage Ranch’s commitment to sustainable living aligns perfectly with Tehachapi’s long-term vision. By minimizing carbon emissions and optimizing time for family and community, Sage Ranch enhances the quality of life for its residents. This approach not only supports the city’s dedication to environmental stewardship but also fosters a sense of community well-being.

Sage Ranch is more than just a place to live; it’s a lifestyle choice that embraces health, wellness, and sustainability. With beautifully styled homes built with quality craftsmanship and designed with modern amenities, Sage Ranch offers a fresh new concept in New Home Community Living at an affordable price. Whether you’re a young family starting out, a working professional, or retired, Sage Ranch has something to offer everyone.

Location: Tehachapi, California;  35.120834, -118.439139.

Focus: Affordable green housing for the supply-challenged Southern California market.

Size: 138 acres (55.8 hectares) for 995 units.

There is a significant and well-reported housing shortage in the state, and in particular in the southern portion. The current Tehachapi housing market has an average price of USD 447,000, an average home age of over 20 years, and would require repair work for a new buyer. Approximately 750 houses trade each year. Sage Ranch’s brand-new units will have an average price just below that at USD 437k, with a range between USD 299k and USD 549k, and Greenbriar will be selling an average of 150 units per year over the 6.5-year sales cycle for the property. Proximity to major regional employers and government installations provide ample would-be buyers.

Sage Ranch is a planned community with an orientation to smaller lots, walkability, and shared amenities characterized by a blend of new urbanism and traditional values. Designed with resource conservation and the historic charm of the great American communities in mind. Eight different styling options provide buyers with plenty of flexibility for their lifestyle and budget. Smaller lots incentivize community development; orientation to garden, patio, and porch spaces foster community interaction, and smaller personal yards demand less maintenance, water, and energy.

Summary Economics:  Present value of corporate free cash flow of USD 134.2 MM (CAD 181 MM).

Environmental Impact: Sage Ranch minimizes the community’s environmental impact, at a reduction of 8,000 metric tons of CO2 annually versus conventional housing. Solar panels on every home, smaller personal yards with careful selection of low water consuming plants, plus shared amenities such as clubhouse, tennis courts, and pool, foster community and will lower aggregate energy and water consumption.

Status: Break ground in April, 2024 for first phase construction.

Timeline and Asset Lifespan: 6.5 years, from early 2024 initial phase of home sales to late 2030 final sales phase.

Partners in Site Development:

JZMK Partners (planner), Strong Engineering & Design (architect), DeWalt (engineering), Richard Phillips Homes, Alexander & Assocs (engineering), California Utility Consultants, Bashan Management, Nova Group, California Builder Services.

Key regulators: City of Tehachapi, California Department of Real Estate (DRE), State of California.

– Decline in Demand: Unlikely given the size of interested home owners in the vicinity, plus incremental job growth at nearby employers, and entry-level pricing at 50% of the price of the average California home.

– Increase in Supply: Limited land availability and challenging permitting obstacles restrict new supply coming onto the market.

Third-party source for asset economics – Altus Group Expert Services, a recognized industry leader in real estate diligence and valuation.  The report was created for the lender, so should be considered conservative. Using the latest version from January 2024.

Total Greenbriar Asset revenue:  USD 421.9 MM (net of 6% sales agent fee).

Discounted Greenbriar’s Present Value of Free Cash Flow: USD 134.2 MM (using a 6% discount rate).