Real Estate Booms: Is the California Delta Next?

If you have considered waterfront real estate as an investment, vacation property or commercial location, the Delta may just be for you.

Seven days a week, Delta Discovery Cruises provides the luxury and excitement of cruising the Delta on board their climate controlled vessels. Photo by Suzanne Black

By Jah Mackey
Published: July, 2010 

If you have considered waterfront real estate as an investment, vacation property or commercial location, the Delta may just be for you. The region has commercial and residential real estate at phenomenal prices and great rental rates.
 
Right now, the Delta is experiencing the same difficulties that many areas have since the real estate market crashed in 2008. We have witnessed the job market dry up, residential property prices plummet and tax revenue fall far short. These, in turn, have affected state budgets; now, commercial lease and sale properties have followed suit. Moreover, while the water in the Delta is a critical resource to California and the nation, the local communities and their respective economies are not immune to the swift economic changes that affect our economy on the state and federal levels.
 
The net result is a catalog of commercial and residential properties at or below market rate values with owners ready to negotiate.
 
Now, some of you may think that this is a bad time to make a purchase, but I would encourage you to look at the situation between the lines. In 1997, California completed a needs analysis study carefully identifying the users and the required resources to sustain the recreational economic development of the Delta. The final report determined that the Delta is a playground to an estimated 14 million visitors a year, and each person spends an average of 28 days a year in the Delta.
 
Now skip ahead 13 years and add in an economy that is showing signs of the recovery from one of the worst recessions we’ve experienced. You will discover that we have a marketplace ripe with opportunity. In the last decade, state agencies have made infrastructure improvements in and around the local Delta communities in an effort to preserve the history and enhance tourism—the visitor’s center in Locke, for instance. Private industry has also made significant investment in agri-business, tourism and hospitality and of course real estate.
 
Real estate in core Delta areas—including numerous properties now for sale along Highway 160, or River Road—has traditionally remained family-owned over generations, with very few opportunities ever coming to the open market. This is significant because there is a moratorium on new construction in many areas, as outlined the 2007 Delta Protection Commission Report (www.delta.ca.gov). In other words, there are no new developments being allowed in many parts of the Delta’s primary zone.

If you are considering relocating your business or your family and you are worried about the number of small businesses closing down, foreclosures on the rise and the fact that the Delta’s future as a sustainable water resource is uncertain, keep in mind many opportunities abound as long as you read between the lines. The Delta is California’s “too big to fail” business. With new money coming in, public and private infrastructure improvements and local businesses expanding in the midst of a recession, the Delta is the next possible breakout opportunity.

For more information on residential and commercial properties in the Delta, you should contact a local real estate agent—I have listed two websites in a sidebar on this page to get you started. To get more information on state tax incentives that started when the federal tax incentives expired, visit the California’s Franchise Tax Board website, www.ftb.ca.gov/individuals/new_home_credit to identify the state’s money-saving opportunities.

Finally, I’d like to highlight two attractions in the Delta’s core zone that exemplify why the region is ripe for explosive growth:

Delta Discovery Cruises

Seven days a week, Delta Discovery Cruises (DDC) provides the luxury and excitement of cruising on the California Delta on both of their Coast Guard-certified vessels, the Island Serenade and the Island Girl. On board these climate-controlled vessels, DDC offers both public and private cruises.

What makes Delta Discovery Cruises so unique? The passion and experience of owners Steve and Heather Ingram, a husband and wife team hailing from Utah. For 14 years, they gave tours on the Great Salt Lake, until July 2008, when the City of Pittsburg extended an invitation to the company to relocate to the Bay Area. Steve is a Coast Guard-certified Captain and Heather is the marketing genius behind DDC. 

To book your private charter or just experience one of the many fantastic cruises offered by Delta Discovery Cruises, call (925) 252-9300 for reservations or visit them at www.deltadiscoverycruises.com.

 

The Old Sugar Mill

In 1984, American Crystal consolidated and sold their sugar factory to a collection of local growers, forming the Delta Sugar Corporation. They owned it until 1993, when economic pressures forced its closure. In 2000, Carvalho Family Wineries decided to redevelop the building and land for wineries and have a local facility to crush the grapes grown in the Delta.

To preview the grounds for your next event or to venture out exploring, call (916) 744-1615 and ask for Marni, the event manager. You can also visit them at www.oldsugarmill.com for information about upcoming events and wedding planning.

For more information on Delta real estate, visit: Coldwell Banker Amaral & Associates www.cbamaral.com Joe Enos & Association www.riverdeltaland.com

Jah Mackey, is President of Oceanus Marine Group (OMG), which provides outsourced marina management services to public and private marinas.  Mackey is the current commodore of California’s first internet-based yacht club, OMG’s Delta Yacht Registry, and is an avid boater with over 20 years of boating experience on the San Francisco Bay and Delta Regions.