The Oxnard Planning Commission has rejected a request to replace some of the proposed retail buildings at the River Park Community with multi-story apartment buildings and houses. RiverPark Legacy LLC wanted to alter its specific plan which is a use document that governs the make-up of the development.
Many residents have been battling to keep the changes from occuring. “Nearly 350 RiverPark residents have signed petitions urging a “no” vote on proposed changes that call for 340 more homes and apartments for a total of 3,145, the ability to construct a five-story apartment complex behind a law office tower, and a reduction in the commercial building area by about 500,000 square feet, among other smaller changes.”
The plan still needs to go to the city council for consideration but so far, River Park Residents 1 – Deveoper 0. I suspect they would like to add additional homes due to the downturn in the commercial markets. There is a lot of vacant commercial space out there which in turn has led to lower lease rates on commercial property. Commercial properties usually have 10 year leases and the developer would be executing these at a time when Tenant’s have the upper hand. Additional homes would generate immediate cash flow, compared to leasing commercial space which will take time to recoup the investment. Developers need cash and 340 homes would amount to about $13 million in profits, if we assumed the developer made a 10% profit on each home with an avg sale price of $400,000.