Successful Segmentation | John Burns Real Estate Consulting

Successful Segmentation


How do you become the 22nd-fastest-selling master-planned community in the country with just seven months of sales? Rancho Mission Viejo in San Juan Capistrano, California sold 360 homes (50-plus a month) from June to December at its two new villages nestled in the South Orange County hills just ten minutes from the beach.

Seven primary housing neighborhoods. The Sendero community within 14,000-unit Ranch Mission Viejo opened with seven carefully planned and properly segmented communities, ranging from row townhomes at 15 to 18 units per acre to single-family homes on minimum 5,000-square-foot lots. Prices range from the low $400,000s to high $800,000s, which is very expensive by US standards but relatively affordable for a piece of paradise in Southern Orange County. Residents have access to a large clubhouse, swimming pool, guest house, parks, putting greens, and community gardens, all of which are ready at move-in.

Separate but equal seniors. Gavilan, an adjacent gated age-qualified housing neighborhood with 268 lots, sidles up to Sendero. Buyers can choose from four product lines ranging from a unique duplex / small lot detached product to standard single-family homes on minimum 4,950-square-foot lots. Prices range from the low $500,000s to the $800,000s. Gavilan residents have their own private clubhouse and recreational amenities, but they also have access to Sendero’s amenities.

A grand opening swarm. More than 10,000 people came to the grand opening of 30 model homes in its first neighborhood, Sendero, last June. Within four weeks, 131 homes were reserved.

Eleven neighborhoods may seem like overly tight segmentation to some, but the architecture and elevations were carefully chosen, and having a $400,000 price gap helps quite a bit too. A number of builders who were outbid for the lots can attest that the homes were priced to command the premium the community deserves, and the developer is to be commended for a sparkling execution that has clearly played a huge role in the success thus far.

 


Pete Reeb If you have any questions, please contact Pete Reeb at (858) 281-7216 or by email.

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