Lucid Motors, Nikola Motor Company Opportunity for Land InvestorsSeptember 19, 2018 / Blog / 0 Comments
Lucid Motors announced its plan to invest $700 million in a manufacturing plant in Arizona in 2016. They secured an option on 500 acres in Casa Grande and indicated that they expected to start production in 2018.
Lucid Motors Secures Funding
We?ve been eagerly awaiting word to see if this project was going to materialize. This week (September 17th), the startup announced that it has secured an investment of more than $1 billion from the Saudi Arabia Public Investment Fund. Production is now scheduled to begin in 2020. The project is expected to bring 2,000 jobs.
And it?s not the only electric vehicle that?s going to be built in the area.
Nikola Motor Company Decides to Move to Coolidge in Pinal County
Nikola Motor Company is preparing to begin construction of a manufacturing plant in Coolidge to produce hydrogen-electric semi-trucks. Though producing a very different kind of vehicle, this project is similar in impact to Lucid and is expected to bring approximately $1 billion in capital investment and 1,800 to 2,000 jobs. Nikola just secured some 500 acres, passing on the land they had previously optioned in Buckeye Arizona so they could more quickly get their plant operational.
Land Investment Opportunity
The areas into which these factories are being built are very rural and largely undeveloped. The empty land surrounds each site, for miles.
That?s typical when companies go looking for hundreds of acres to construct large manufacturing projects. They look for land they can buy at a fraction of the price home builders are paying at the edge of the city. They want to build in growth corridors, taking advantage of, but also adding to, the growth momentum that a location has. By the time the plants are fully developed and producing, new housing and all manner of other development springs up to service the thousands of families that move closer to those new jobs.
Savvy investors recognize the land investment opportunity these types of developments bring. They purchase land while the area still has the rural feel and pricing dynamics that created those attractive, low prices in the first place. As project construction begins, and as the inevitable supporting development starts to take shape, the value of land in the area appreciates. A lot.
It?s an old story. Take a look at what happened to land values each time a major valley project has been developed, like the Intel plant in South Chandler, the Boeing Company in East Mesa, or Honeywell Aerospace in Northwest Phoenix. Values rose dramatically! Farmland and empty desert become housing, offices, schools and shopping centers. And as the development takes hold and matures, land sales move from a per-acre price to a per-foot price. Even up to 10-fold increases in land values is possible, and more common than one might have thought.
We?re Buying Investment Land Now!
I?m thrilled to be holding many hundreds of acres with investors that will be directly impacted by these two projects (here?s a video regarding one of them). But there?s a lot more opportunity in the region, and we intend to capture our share of it. There are other big projects that are underway, plus the steady progress of more typical business development that is looking for a home on the edge of the growth. We are currently negotiating our next moves and have a number of sites in play. As always, we?ll cherry pick those that we feel will position us for the strongest and safest returns.
If you are interested in the security and the investment opportunity that come from carefully selected land assets in a growing area, review this website to see exactly what it is we do. We?d love to have you on board.