The principals of South Jordan-based DAI (Development Associates Inc.) have formed a new home-building company, Candlelight Homes, that focuses on developing communities on foreclosed land acquired from local banks.
Candlelight Homes already has two residential projects under way — Stillwater at Saratoga in Saratoga Springs and Valentine
Estates in Woods Cross. They are especially attractive to buyers who are finding they can buy a newly built home for the same or less than a foreclosed property, said Candlelight Homes principal Joe Salisbury. Stillwater will have 237 home sites with home prices starting in the $190s, while Valentine, with prices from the $170s, will have 93 home sites and 182 clustered townhomes.
Salisbury said Candlelight is also handling new home development in communities begun by DAI, including The Cove at Herriman Springs in Herriman, The Rivers and Hobble Creek in Springville, Crescent Hollow in Sandy, Edelweiss in Draper, Triple Crown at Mapleton in Mapleton and SilverLake at Eagle Mountain in Eagle Mountain.
“Most of the property we bought before the big upswing in the market,” he said. “Now we’re just scaling our prices back to our original pro formas, which were pre-boom. We either have a really low basis in the land to start with on our existing projects or, on the ones we don’t have the best basis in, we’re just lowering it way down. We’re significantly lowering our prices and we’re either doing joint venture deals with banks where they’re putting up the land and we’re building on it, or we’re coming in with investors with cash and just buying subdivisions for pennies on the dollar.”
Salisbury said real estate has been moving “surprisingly fast” because “so many people are out looking for foreclosures and a lot of them have noticed they can buy a new [home] for the same or less than a foreclosure so we’re pulling in a lot of those buyers. And advertising and promoting this idea that we can sell for less than foreclosures has got a lot of people interested. So many people don’t want to deal with the banks and so many people want to wait until the bottom is there and this is making people think that maybe the bottom is here.”
Labor and building materials also are less expensive now than they have been in “decades,” Salisbury said.
(DAI) has been developing land into communities for over 15 years resulting in over 3,500 residential building lots as well as four commercial centers.