Considered Opinions

Real Estate & Plan-2025

One of the few things I learned from Jerry Sanders ^[i] Jerry was not a particularly likable guy but he was a masterful salesman. He was National Sales Manager for Fairchild when I was a lowly wafer fab engineer. See Jerry Sanders many years ago is there is more to selling than having the lowest price. On another page of this website I explain how important it is to gain a complete understanding of all the variables before setting a sale price, particularly with real estate. One cannot be expected to know the best price to put in a vacant land listing contract if he or she has not done the necessary research to establish the so-called “highest and best use”. Neither can they represent a seller effectively without a complete understanding of all the things that a prospective buyer wants to know about the property. Too often brokers are anxious to ask, “how much do you want to list it for”, instead of saying, “let’s talk about how we can represent this property to get the best price”.

I have recently sold two of my real estate holdings and am preparing to sell four more. The spreadsheet referenced above will help ask the important questions and organize their answers. It summarizes the methodology to be relied upon in liquidating these properties over the next few years.

The Annex

These two parcels (gray on the map ) together make up a bit over two acres. They are currently part of one of the PATCHEN Christmas tree farms. Both parcels have really good views from 1,625 ft elevation of Los Gatos Canyon to the East. Both have lots of sun, are almost level, and have paved road access with very little road noise (except occasional summer weekends). The neighborhood is well kept with high-end houses and Building Site approval is almost completed. It has two wells, neither of which provides an adequate flow rate for site approval but can be used for irrigation. A shared well agreement has been established between these two and two other adjacent properties.

The potential exists to lease back a portion of the land to maintain it within the Christmas tree farm. Other sharing arrangements are possible that would preserve the current Christmas tree inventory and generate future income for the new owners.

This is an ideal location for two 2500 to 3500 square foot houses. Several engineers, a builder, and an architect have already been engaged in the project, but there is ample time to make changes to the size, design, or location of the houses to suit buyer preferences. Other options might include a joint venture with a builder or investor to build two “spec” houses to sell or rent.

The Park

This long, narrow, half-acre parcel (blue on the map ) lies between Melody Lane and Mt. Charlie Road, where they meet Old Santa Cruz Hwy. It is populated by a dozen or more mature redwoods but all other vegetation has been removed, constituting a “shaded fuel-break”. The slope is half moderate and half steep; there is no view or significant sun exposure.

It is located at the far north end of the Melody Woods subdivision, built in the late 1940s & 1950s, and is today a mature, very clean, orderly neighborhood. Melody Woods maintains a private water system, which is licensed/monitored, and up to date. It might be possible to connect to that, the alternative is putting in a well. There is an “almost” perennial creek on the property, which could be used for irrigation but it cannot be depended upon for domestic water.

Mt Charlie Rd., which borders it on the West, is a Scenic Highway, requiring 100 ft setbacks that could prohibit building but there is a provision in Santa Clara County that allows variance for long-narrow lots. That could make Building Site Approval possible and therefore needs to be investigated. There are undoubtedly costs involved in obtaining a variance and Site Approval almost certainly would require an alternative septic system.

Melody Lane, which is very quiet, borders it on the East and there is virtually no road noise except for occasional Summer weekend traffic or Hwy 17 closures. Highway access is easy in every direction.

The Rancho

This property (big purple square on the map ) requires considerable research and study to establish its “highest and best use”. It is unique in this immediate area for several reasons.

• Although the mailing address is Old Summit Road, it has direct access to Summit Road – arguably the busiest road in the Santa Cruz Mountains.
• In addition to its high traffic location it has the unique Santa Cruz County zoning designated “CA” – 16.50.070 & 16.50.080 or ( Commercial/Agricultural ),
• At 6-acres, it is larger than most other properties bordering on Summit Road.
• Despite its location, it is deep enough in the southerly direction to escape virtually all road noise.
• There are two adjacent properties that could become available, expanding greatly the Summit Road presence.
• It has a perennial 1/4 acre pond with ducks, frogs, turtles, etc.
• There are multiple wells, one of which probably adequate for irrigating crops.
• There is one legally grandfathered house and several other functional buildings.
• It is currently part of the PATCHEN Christmas tree business – a functioning agricultural venture, preserving the integrity of the “CA” zoning.

 

Potential uses for the property include the following categories at a minimum.
Any of these options can be considered either as a joint-venture or with seller financing.

1. Continue As Christmas Tree Business
   1. Purchasing a property such as this to raise Christmas trees is not a viable option because it cannot be done profitably. It is however an incremental income option for a potential buyer with other reasons to own the property.
   2. This could be a working couple, having “day jobs” or other sources of income. A family with a strong interest in agriculture, with no prior experience, could take over the existing business and generate considerable income from it. It would be possible to live in the existing house and add other agricultural products to increase income, including Halloween pumpkins, organic vegetables, etc.
   3. The option also exists for a buyer to purchase the property and the business on a long-term arrangement, whereby payments could be made annually.
2. Vineyard & Winery
   1. The wholesale wine grape market cannot support an investment in a property like this one in this location due to very competitive and fluctuating prices. On the other hand, the addition of a winery, such as Burrell School and Regale demonstrates the viability of such a business and this property has a far better location than either of those.
   2. Others like Loma Prieta, Wrights Station, and Silver Mountain, could benefit greatly by having a presence on Summit Road, either by acquisition or partnerships.
   3. Even wineries as far away as Salinas like Odonata or others in the Santa Cruz area are candidates to expand their operations to the Summit Road area. The fact that several large producers from the Napa / Sonoma area, in recent years have expanded their operations to the Shenandoah Valley demonstrates the viability of such a strategy.
   4. Of course, there is always the option to find a stock-option-millionaire from Facebook, Google, Apple, etc. who wants to start a winery – many such adventures already exist.
3. Other Commercial Use
   The CA zoning opens up other possibilities for retail operations focusing on agricultural products grown on the property. These might include the following but anything with an agriculture connection would qualify. The County would even consider full-service office space if it were related to agriculture.
   1. Organic vegetables Bay Area
   2. Halloween pumpkins San Jose
   3. Lavender products Carmel Valley
   4. Fresh herbs & flowers Bonny Doon
   5. Farm Equipment and Supply None In Summit Area
   6. or all of the above
4. Public Use
   Environmental nonprofits have funds to invest in properties that fit their particular agenda. Even State and local governments are candidates for their preservation interests, whether that be school-related, UC Extension service, etc.
5. Luxury Estate
   Locations for a luxury estate for a Google/Apple/Facebook millionaire do not get any better than this. Situated on six acres of level land with a quarter-acre perennial pond, 2nd-story view of Monterey Bay, already producing Christmas trees and suitable for a private wine vineyard, grazing, or hobby farm. It offers easy access to Summit Road on the north side and seclusion along the south side.

 

The Homestead

The three parcels identified as (green & yellow on the map ) on the map are what I think of as my “homestead”, dating back to April of 1969 when we moved here from Sunnyvale. My daughter asked me some years ago if I wanted to stay here forever. My answer was, “no – only until I die”.

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The table below references documents and additional information relating to each property. There is also a local map.

Reference	Valley Vista		Annex		Park	Rancho	Homestead
APN	588-08-111	588-08-112	588-08-095	588-08-096	588-06-027	096-431-04	588-08-030	588-08-119A	588-08-119B
Status	Sold	Sold	WIP	WIP	WIP	WIP	Hold	Hold	Hold
County	Santa Clara	Santa Clara	Santa Clara	Santa Clara	Santa Clara	Santa Cruz	Santa Clara	Santa Clara	Santa Clara
Address	22045 Old Santa Cruz Hwy	22065 Old Santa Cruz Hwy	22197 Old Santa Cruz Hwy	22199 Old Santa Cruz Hwy	tbd Melody Lane	17430 Old Summit Road	22217 Old Santa Cruz Hwy	22195 Old Santa Cruz Hwy	22195 Old Santa Cruz Hwy
Size	1.8 acre	1.2 acre	0.8 acre	1.2 acre	0.5 acre	6 acre	2.5 acre	1.5 acre	2 acre
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