Shea Properties has bought a large empty lot in San Jose’s Japantown district, where it plans to build 520 apartments and 19,000 square feet of ground-floor retail space.
Japantown is just to the north of downtown San Jose, yet efforts by San Jose officials to create transit-oriented developments near the downtown Diridon Station helped to attract Shea Properties. Google has proposed a transit village near the train station, which has the potential for new BART and high-speed rail connections, along with existing light rail, Caltrain, ACE Train, Amtrak and bus links.
“The demographics of San Jose are very attractive; we have done two other projects there,” Sean McEachern, vice president of development for Shea’s multifamily homes division, said Thursday. “We also are very excited about the potential for Diridon Station.”
Mountain View-based Google’s village plan would construct 6 million to 8 million square feet of offices that could accommodate 15,000 to 20,000 Google workers.
The home builder also was drawn to the Japantown district itself.
“Japantown is a great area, very walkable; it’s a great, lively, small downtown,” McEachern said.
ICS Corporate Yard Multifamily, an enterprise headed by Shea, paid $30 million on Nov. 13 for 3.8 acres that comprise most of a 5.3-acre block bounded by North Sixth, East Taylor, North Seventh and Jackson streets, Santa Clara County property records show. The seller was Jackson Taylor Partners Owner.
Orange County-based Shea Properties, one of California’s top residential builders, has embarked on a joint venture with equity partner Ivanhoe Cambridge, a Montreal-based realty firm, to develop the Japantown complex, Shea said.
A brochure prepared by the prior developers of the site, The Related Cos. and Williams & Dame Development, touted the project’s benefits.
“San Jose’s most vibrant urban neighborhood will soon be home to one of its most ground-breaking developments,” the brochure stated. “It will be a place where residents and visitors can pick up fresh offerings from local farmers and browse an eclectic mix of shops and restaurants.”
One realty expert believes development of the site would bolster Japantown.
“This site is a tremendous opportunity,” said Bob Staedler, principal executive with Silicon Valley Synergy, a development consultancy. “Japantown is a highly sought-after neighborhood. It’s a very attractive area. A project here would be very successful.”
The site of Shea’s Japantown project also would include a creativity and arts center and a public park, along with parking.
“We are confident we will bring together a very nice project for the city of San Jose,” McEachern said.
Reported by The Mercury News (Nov. 17, 2017)
For complete information on Shea Homes including all corporate and division offices and top personnel, refer to The National Builders Directory & Online Database.
Mattamy Homes, North America's largest privately owned homebuilder, has signed an agreement in principle to purchase the Royal Oaks Building Group, the largest privately owned builder in the Raleigh-Durham, North Carolina, area and the fifth-largest builder overall in the market. The deal is expected to close later this month.
"We are very excited about the acquisition of Royal Oaks, as this company is a very successful builder in a highly sought-after market," says Peter Gilgan, Founder & CEO of Mattamy Homes. "We believe that Mattamy and Royal Oaks are complementary in terms of operations and culture, which make this a great fit. The acquisition also supports Mattamy's strategy of extending our geographic footprint in the US to markets that are relatively close to our current operations, which in this case is Charlotte. Our plan is to maintain the staff in place to execute the Royal Oaks business plan under the Mattamy banner."
Royal Oaks was founded by President Rich Van Tassel in 2000. The company has approximately 80 employees, and builds attached and detached single-family homes.
"As with Mattamy, our Royal Oaks team quickly recognized the cultural fit between our organizations," says Mr. Van Tassel. "Additionally, it was important to us that Mattamy wanted to acquire an operation, not simply strong land positions. We are proud of our accomplishments, are excited about our future and look forward to taking the Mattamy Raleigh division and our careers to new levels."
"Being a founder and operator, Rich understands what it means to run a privately held builder," adds Mr. Gilgan. "The composition of his highly experienced and skilled operating team is very similar to that experienced across the balance of our US operations. We're looking forward to welcoming all of them to the Mattamy family."
Following closing of the transaction, the integration process involving systems, policies and procedures will commence with the goal to have the integration complete by mid-2018.
Reported by Mattamy Homes Press Release (Nov. 15, 2017)
For complete information on Mattamy Homes and Royal Oaks Building Group including all corporate and division offices and top personnel, refer to The National Builders Directory & Online Database.
LGI Homes plans to build a new 250-home development in the small Rowan County, North Carolina, town of Granite Quarry. Called The Village at Granite, the project amounts to a building boom for this small town.
"We want growth in Granite and we want families in Granite," said town alderman Jim Costantino. "If you want to grow and want to stay alive, you need new blood."
LGI's Charlotte Division will oversee the development. Approximately eleven new residential streets are planned in the completed project.
Granite Quarry has around 3000 residents, but sandwiched between Salisbury and Rockwell, it hasn’t been able to attract some of the business that neighboring communities have.
The area for the new development is on a spot that was once targeted for growth around ten years ago, but never got off the ground, according to Costantino.
Reported by WBTV (Nov. 14, 2017)
For complete information on LGI Homes including all corporate and division offices and top personnel, refer to The National Builders Directory & Online Database.
NRP Group continues to blaze a trail in the San Antonio market as it goes under contract to buy 54 acres of vacant land near the Brooks economic hub where it plans to build apartments and retail shops.
The project, at the crossing of Presa Street and Corpus Christi Highway, would be one of the largest investments made by a developer on the South Side in recent years. The construction of the Mission Reach trail and the redevelopment of the former Brooks Air Force Base have sparked a building boom of new apartments in the area.
NRP plans to use 15 acres of the land for a 320-unit apartment complex, said Jay Johnson, a developer with the company. It is partnering with the city’s San Antonio Housing Trust Finance Corporation on the $49 million complex, whose residents would be limited to those earning between 50 and 60 percent of Bexar County’s median income — or, between $31,750 and $38,100 a year.
“All the stuff (built recently) has been market rate. So there’s a need now for more affordable, for all the jobs that can’t afford the new high bar of rent at Brooks,” said Dan Markson, NRP’s senior vice president of development.
NRP, which is based in Cleveland but has a local office, would buy the 54-acre site from the Brooks Development Authority, the agency that operates Brooks, which bought it from the state of Texas in 2007. NRP and Brooks are still discussing the purchase price, Johnson said; the property was assessed at $2.8 million this year by the Bexar Appraisal District. If everything goes to plan, NRP will line up its financing in the second quarter of next year and complete the complex’s first buildings by July 2019, Johnson said.
The company is working with potential partners who could build retail on part of the site, Johnson said. He declined to name who the partners are. There’s enough land that a second phase of apartments could be built, he said.
The site of the proposed complex benefits from being close to the Mission Reach trail and the employment hub at Brooks, and from being in an area with relatively little traffic congestion compared to the North Side, Markson said. He thinks the growth of Palo Alto College and Texas A&M University’s South Side campus will bring more jobs to the area.
New apartment complexes have transformed parts of the South Side in the last five years, causing concern among residents that they will clog the area with traffic or overwhelm the missions, which were declared World Heritage sites in 2015. Some residents are also worried that too many subsidized apartments are being clustered there compared to other parts of San Antonio, especially the North Side.
“I am concerned about the density of apartments. I think we have enough, but such is life,” said Carroll Brown, a volunteer with Alliance for San Antonio Missions, a nonprofit set up to protect the missions. “The more people you pack together, by definition, the worse it gets.”
For his part, Markson doesn’t think there’s a great risk of the South Side becoming as congested as the North Side, due to the large number of thoroughfares connecting it to downtown.
“It’s a great place to live, with everything … you want that’s on the North Side, and no traffic,” he said. “You’ve got 15 different ways in and out.”
At least five major apartment complexes have been built along the Mission Reach and at Brooks in the last few years, offering 1,510 living units, according to property records and news articles. Another six are either under construction or planned and are expected to bring another 1,534 units.
NRP has led the way in building new apartments in the area. More than half of the 3,044 units that have been built or are in the works in the area are NRP projects.
The company has built two complexes in the nearby Brooks economic hub, including the Kennedy, which opened earlier this year. Last year, it partnered with local developer James Lifshutz on The Flats at Big Tex, a 336-unit complex in Southtown. The company plans to build more complexes on the South Side, including a mixed-income one along the river and another near the Lone Star Brewery, even though the rehabilitation project there seems to have stalled.
Reported by The San Antonio Express-News (Nov. 1, 2017)
For complete information on NRP Group including all corporate and division offices and personnel refer to The Directory of Multifamily Builders & Developers and Online Database.
Toll Brothers announced the formation last month, of a joint venture between its Toll Brothers City Living division and SMI USA, a subsidiary of the Shanghai Municipal Investment Group Corporation, to develop 91 Leonard Street, a 19-story, 111-residence luxury condominium project in the Tribeca neighborhood of Manhattan in New York City.
The joint venture has secured a construction loan from a syndicate of banks including MUFG Union Bank, N.A. as Agent, CIT Bank, N.A. and Santander Bank, N.A.
91 Leonard is located in Manhattan’s fashionable Tribeca neighborhood, just a short walk to SoHo, City Hall, the Financial District, the Hudson River waterfront and Hudson River Park.
Designed by Skidmore Owings & Merrill (SOM) and Hill West, it offers residences ranging from studios to four bedrooms with nearly floor-to-ceilings windows, and tall ceiling heights. Amenities include an indoor pool, steam and sauna rooms, a fitness center, a children’s playroom, a rooftop terrace with outdoor fireplace, and a screening room.
Residents will enjoy a ground floor lounge looking out on the building’s private garden and reflecting pool.
Douglas C. Yearley, chief executive officer of Toll Brothers, stated: “We are pleased to partner with SMI USA to develop this exciting project. The quality of the building and its premier location give us confidence that 91 Leonard will carry on a fifteen-year tradition of fine Toll Brothers City Living projects in New York City.”
Tom Tao, President of SMI USA, stated: “With Toll Brothers’ great brand, reputation and track record, we very much look forward to collaborating with them on this project and see it as the first step in a long and successful relationship.”
Reported by GlobeNewswire (Nov. 3, 2017)
For complete information on Toll Brothers including all corporate, regional and division offices and top personnel refer to The National Builders Directory and Online Database.
Lennar Corp. has downsized a proposed housing development in Miramar by 152 units or about 28% but still needs final approval from the city commission, Broward County and the state to proceed.
Eric Silva, the city planning and economic development director in Miramar, told the Sun-Sentinel that Lennar may not be able to start clearing land for its proposed 385-house development for two years.
Lennar’s 120-acre development site south of Bass Creek Road and west of Southwest 172 Avenue is a wetlands property with a forest of melaleuca trees and Brazilian pepper trees.
Lennar previously proposed building 537 houses there before downsizing its plan to 385 houses. But opponents say the development would pave over the last undeveloped wetlands in Miramar and would threaten wildlife.
It is unclear what the Florida Department of Environmental Protection would require Lennar to do to comply with the agency’s wetlands mitigation policy, which essentially requires developers to replace wetlands they destroy.
The Miramar City Commission, which has given the Lennar development preliminary approval, must grant final approval for the development to advance.
The Broward County Commission is expected to consider the proposed Lennar development next month, and if approved, the development would undergo a review by the state government.
Reported by The Real Deal (Nov. 4, 2017)
For complete information on Lennar including all corporate and division offices and leading personnel, refer to The National Builders Directory and Online Database.
D.R. Horton paid $632,000 for 32 townhome lots in The Villas at St. Charles in Daphne, Ala., according to developer Nathan Cox of 68 Ventures. The townhomes will measure 1,550 square feet with prices starting in the $150,000s. The homebuilder paid another $700,000 for the last 40 lots in Quail Hollow off Ala. 225 in Spanish Fort where it plans to build triplex and townhome units, according to Cox.
Reported by AL.com (Nov. 5, 2017)
For complete information on D.R. Horton including all corporate and division offices and leading personnel, refer to The National Builders Directory and Online Database.
Century Communities expands again with the acquisition of substantially all the assets of Sundquist Homes (“Sundquist”), a single family homebuilder in the Seattle, Washington market, where it has been operating for over 40 years.
The strategic acquisition expands the Company’s presence in this growing West Coast market and aligns well with the Company’s objective to grow its operations in attractive markets with strong economic fundamentals. The Company initially entered the vibrant Seattle market through its merger with UCP, Inc. in August 2017.
Sundquist’s business is focused on building single-family homes with sales prices generally ranging from approximately $600,000 to $1.1 million and with home sizes ranging from 2,200 to 3,700 square feet. As part of the transaction, Century Communities acquired homes, owned lots and controlled lots in highly desirable submarkets of the greater Seattle area. The combination of Century Communities and Sundquist creates a top-10 homebuilder in the Seattle market, which features a combination of record low inventory and high price appreciation. Larry Sundquist, founder and CEO of Sundquist Homes, will remain with Century Communities.
Dale Francescon, Co-Chief Executive Officer of the Company, stated, “We are very excited to complete this complementary and accretive acquisition, which represents a significant expansion in one of the strongest housing markets in the United States. Sundquist Homes has built a respected local brand and reputation founded on excellence and integrity. We are proud to welcome them to the Century team.”
Rob Francescon, Co-Chief Executive Officer of the Company, stated, “Sundquist is an excellent addition to the Century portfolio. The acquisition brings deep local relationships and a seasoned management team that has been successfully operating in the Seattle market since 1974. Additionally, this acquisition provides an opportunity to drive significant operating efficiencies for our existing Seattle platform and will be accretive to the local operation and the larger business in 2017 and beyond.”
Larry Sundquist commented, “I am truly excited to become a part of the Century team. Over the past 40 years, we have built a reputation in the Seattle area based on our legacy of excellence and integrity in the multitude of homes that we have sold. Century shares our dedication to delivering a quality home buying experience and provides a perfect fit for the next chapter of our growth.”
Sundquist Homes was represented by David Rosen of Long Grove Capital. Builder Advisor Group provided services to Century Communities.
Reported by Company Press Release (Nov. 1, 2017)
For complete information on Century Communities including all corporate and division offices and leading personnel, refer to The National Builders Directory and Online Database.
The Lennar Corporation said it will merge with CalAtlantic Group to form America’s largest homebuilder in a stock-and-cash deal worth $5.7 billion. The deal would create a behemoth with around 240,000 building plots in 21 states, a market value of about $18 billion and combined revenue of $17 billion over the past 12 months.
The announcement came as labor shortages and destructive weather in the United States are weighing on new construction.
Parts of the South were hit hard by Hurricanes Harvey and Irma, with new housing construction in the region falling 9.3 percent last month as housing starts across the country declined 4.7 percent to a one-year low of 1.127 million units.
Homebuilders have expressed steady concerns over their collective struggle to find skilled labor, with 60 percent saying they had found it difficult to attract the right workers during the third quarter of the year, according to a survey published last month; another 30 percent said they had moderate difficulty finding such workers.
The trend could be exacerbated by the devastating wildfires in California, which are expected to increase the demand for skilled employees to carry out rebuilding.
By merging, Lennar and CalAtlantic hope their size will help them achieve “efficiencies in purchasing” and to gain “access to land, labor and overhead allocation,” Stuart Miller, Lennar’s chief executive, said in a news release. The companies hope to generate cost savings of $250 million annually.
“This combination increases our scale in the markets that we already know and in the products we already offer,” Mr. Miller added.
Under the deal’s terms, CalAtlantic shareholders would receive 0.885 of a Lennar share. That would equate to $51.34 a share, a 27 percent premium above the stock’s closing price on Friday. The transaction values CalAtlantic at $9.3 billion, including debt.
CalAtlantic shareholders also have the option to take all or a portion of their shares in cash, at $48.26 a share. The cash payments would be limited to a total of $1.2 billion, Lennar said.
On completion of the transaction, CalAtlantic shareholders are expected to own about 26 percent of the combined company. The deal is expected to close in the first quarter of 2018, subject to shareholder approval.
“This combination is first and foremost to enhance shareholder value,” Mr. Miller said. “The combined company will have a strong balance sheet and generate significant cash flow available to pay down debt and repurchase shares, which will improve returns on capital and equity.”
Mr. Miller and his family trust, which hold a 41.4 percent voting interest in Lennar, and MP CA Homes, an affiliate of MatlinPatterson Global Opportunities Partners that holds a 25.4 percent voting interest in CalAtlantic, have agreed to support the deal, the companies said.
Citigroup and the law firm Goodwin Procter advised Lennar; J.P. Morgan and the law firm Gibson, Dunn & Crutcher advised CalAtlantic.
Reported by The New York Times (Oct. 30, 2017)
For complete information on Lennar and CalAtlantic including all corporate and division offices and leading personnel refer to The National Builders Directory and Online Database.
CalAtlantic Homes plans to build a new single-family community and NRP Group will build senior apartments as part of a large housing development being built on nearly 90 acres in Avon, Indiana.
Equicor Real Estate LLC is the master developer of the project and recently received the necessary approvals to proceed. The project is an extension of the Reagan Park development at the northwest corner of East County Road 100N and Ronald Reagan Parkway.
Equicor Real Estate LLC’s plans call for 165 single-family homes to be constructed by CalAtlantic Homes of Indiana, as well as 98 senior apartments and 40 assisted-living units.
The senior apartments will be built by Cleveland-based NRP Group and the assisted-living units by Los Angeles-based Prudential Real Estate Group. Both senior-living projects are expansions of their existing developments in Reagan Park, developed by Carmel-based Leo Brown Group LLC.
“It’s just a great location,” Equicor CEO Greg Small said. “What we hear from the town of Avon is that they really need available housing. People want to live in Avon.”
Prices for CalAtlantic’s homes will range from $225,000 to $275,000, Small said. CalAtlantic likely will close on its parcel by the end of November and will immediately begin installing infrastructure, he said.
Reported by The Indianapolis Business Journal (Oct. 28, 2017)
For complete information on CalAtlantic and NRP Group including all corporate and division offices and leading personnel refer to The National Builders Directory and The Directory of Multifamily Builders & Developers and Online Databases.