After building houses in Las Vegas for decades, Larry Canarelli has cashed in and sold his American West Homes operations PulteGroup.
Canarelli, founder of Las Vegas-based American West Homes, announced last week that he sold the firm’s homebuilding operations. He declined to disclose the full terms but confirmed that Pulte acquired 1,200 lots comprising 200-plus acres for more than $150 million. Pulte also has an option to buy an additional 2,400 lots comprising about 450 acres, he said. The land is concentrated in the southwest and southern Las Vegas Valley. The Las Vegas Review-Journal reported that Canarelli, 72, told the newspaper he still owns more than 6,000 acres of land in Southern Nevada. But with the sale to Pulte, he has stopped building houses. The transaction follows the best-selling year for Southern Nevada homebuilders in more than a decade and marks the end of an era in Las Vegas’ residential construction industry. The market is dominated by out-of-state, publicly traded homebuilders. Launched in 1984, Canarelli’s firm was the only locally based developer to crack the top 10 in sales last year, ranking fifth with 814 closings, according to Home Builders Research. Atlanta-based PulteGroup — whose brands include Pulte Homes and Del Webb — was sixth-best at 700 closings. Las Vegas used to have more locally based homebuilders, but several shut down after the mid-2000s bubble burst, and others were bought out before the market tanked, said Dennis Smith, founder of Home Builders Research. Canarelli is “one of the smartest builders I’ve ever met,” and it’s “almost a surprise that he hasn’t sold before now,” Smith said. He noted that Canarelli has one of the largest inventories of land and lots in town, and PulteGroup’s purchase price was likely “much higher” than it would have been just a few years ago, given the market’s increased activity. “Wouldn’t it be nice to walk away with $150 million?” Smith said. Neither American West nor PulteGroup issued a news release to announce the transaction, though PulteGroup executives discussed it in an earnings call last week with analysts. Chief Financial Officer Bob O’Shaughnessy said Pulte is “not providing the terms” of the deal. But he disclosed the same lot totals as Canarelli and said the purchase “will enable us to dramatically increase our local market share in Las Vegas” starting next year, according to a transcript of the call on financial-news site Seeking Alpha. Overall, “we think it was a very good transaction, and we’re excited to have the American West brand part of our family,” PulteGroup President and CEO Ryan Marshall said during the call. In an email, PulteGroup’s Las Vegas division president, Ryan Breen, told the Review-Journal on Monday that the company has initially purchased 11 subdivisions from American West. He also confirmed that Pulte acquired “the rights to use the American West name and, given the positive brand awareness in Las Vegas, we will continue to sell under the name for the foreseeable future.” Canarelli said he built 20,000 homes in the Las Vegas Valley through American West, as well as 25,000 in other parts of the country, he said. He will still do land development, noting he is not prevented from selling parcels to other homebuilders but that he wants to support Pulte. “We have land everywhere,” he said, “but they bought a lot.” Reported by The Las Vegas Review-Journal (April 29, 2019) For complete information on PulteGroup and American West Homes, including all corporate, region and division offices and top personnel, refer to The National Builders Directory and Online Database.
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The developers behind a pair of long-delayed residential developments in Palm Springs, each in the works for over a decade, are getting closer to framing houses at last.
Toll Brothers has purchased more than 11 vacant acres at the corner of South Palm Canyon Drive and East Mesquite Avenue previously pegged for a mixed-use development called the Cameron. Its new owner plans to keep the general plans for the site — 102 townhomes and 15,000-square-feet of retail space — but change the name to Cody Place. New home construction could start as soon as August. And off of Indian Canyon Drive on the north side of the city, homebuilders are getting ready to start building houses at Miralon, a 1,150-home community built around a grove of 7,000 olive trees. Construction on the first batch of 44 homes is set to start within the next month. The two developments each have their origins before the recession, between 2004 and 2006, when U.S. Census Bureau data shows that Coachella Valley cities permitted more than 7,000 new homes annually on average. But new home permits in the Coachella Valley plummeted 93% between 2004 and 2011, an even steeper decline than in the state as a whole, and new home permits have not recovered to pre-recession peaks. Palm Springs, for example, permitted 784 new homes in 2005. A preliminary estimate shows 152 units permitted in 2018. Today nine residential projects are currently under construction in Palm Springs, according to a monthly list of development projects published by the city. For both Miralon and the Cameron, now renamed Cody Place, developers have pushed back timelines, changed builders or even tweaked designs in order to rebound after the recession. Cody Place has gone through a series of builders. The Palm Springs City Council originally approved the mixed-use Cameron development in 2006. Davidson Communities, a Del Mar-based real estate development firm, took over the development of the project in 2014, then handed it to homebuilder Woodbridge Pacific Group to manage. And now the site belongs to Toll Brothers. The Horsham, a Pennsylvania-based homebuilder, in March bought the land for $10 million, according to county records. Allen Janisch, VP of Toll’s Palm Springs division, said the site was attractive to Toll Brothers because of its proximity to downtown Palm Springs. The homebuilder will stick to the existing, approved designs, he said, with the exception of minor interior modifications. The one major feature that will change is the development’s name. The new title, Cody Place, is a nod to architect William Cody, who designed a post-modern Googie-style restaurant that used to be on the site. Janisch said the hardest part of taking over the development, which has partially-installed features like storm drains, is figuring out which pieces of infrastructure the previous builder has and hasn’t completed. The two- and three-story townhomes will range from 1,700 to 3,000 square feet, some with rooftop decks. Toll Brothers has not released pricing for the units. Like Cody Place, Miralon has been through more than one iteration. The development, originally called Avalon and designed around a golf course, was approved in 2004. Developers installed streets, sewers, walls and some landscaping, but left the development idle after the 2008 financial crisis. In 2016, Boston-based developer Freehold Communities announced a plan to revive the project by ditching the golf course for fields of olive trees and hiking trails instead. Brad Shuckhart, the president of Freehold’s California division, said now is the right time to start new home construction, with the post-recession recovery going strong and no signs of an economic slowdown. “The city has had quite a renaissance over the course of the last several years,” he said. Three homebuilders — Woodbridge Pacific Group, Gallery Homes and Christopher Homes — are under contract to buy a combined 164 of the 1,150 lots in the development. Shuckhart said Woodbridge will begin construction within the next month. Reported by The Desert Sun (April 4, 2019) For complete information on Toll Brothers, including all corporate, region and division offices and top personnel, refer to The National Builders Directory and Online Database. Greystar plans to develop a 385-unit luxury apartment project on a a key four-acre parcel in Doral, Fla., that it just acquired from Codina Partners, downtown Doral's master developer. Greystar reportedly paid $19.25 million for the property in a deal brokered by Holliday Fenoglio Fowler, L.P.
Greystar’s planned multi-housing project, which is designed by MSA Architects, will feature 385 luxury apartments in a six- and eight-story building. Planned amenities at the property will include a rooftop sky lounge amenity deck, club lounge, expansive fitness center, two swimming pools and multiple courtyards with a park and yoga deck. Greystar reportedly secured a $79-million loan from Northwestern Mutual Life Insurance to build the project, according to The Real Deal, which cited property records. The HFF investment advisory team representing Codina Partners included executive managing director Manuel de Zárraga, managing director Jaret Turkell, senior director Maurice Habif and director Simon Banke. HFF notes it has closed several sales within Downtown Doral, including land sites set for an assisted living facility and an active adult residential development. “Greystar is a world-class institution and we are pleased that they are developing a second project in Downtown Doral, as well as managing our new multi-family tower, 5250 Park,” says Ana-Marie Codina Barlick, CEO of Codina Partners. The 250-acre mixed-use Doral Downtown development features approximately 70 shops and restaurants; a business district with almost 1 million square feet of Class A office space; 5,000 luxury residential units, including the 5350 Park condo tower, the 5250 Park apartments, and Canarias single-family and townhomes in The Residences at Downtown Doral; the Downtown Doral Charter Elementary School; the Downtown Doral Charter Upper School, a 6th through 12th grade charter school that is currently under construction; the Doral Government Center, a LEED-certified city hall and public green spaces adorned with world-class art. Greystar manages and operates an estimated $115 billion of real estate in more than 180 markets globally including offices throughout the United States, UK, Continental Europe, Latin America and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, managing approximately 500,000 units/beds, and has an institutional investment management platform with $32 billion of assets under management, including $12 billion of assets under development. Last week, Greystar Real Estate Partners, LLC announced that its University Partnerships platform exceeded $1.7 billion in awarded projects including developments with Sacramento State University, Salisbury University, the University of Massachusetts, Dartmouth, Mississippi State University and Lehigh University. Reported by company GlobeSt (April 3, 2019) For complete information on Greystar Real Estate, including all corporate, region and division offices and top personnel, refer to The Directory of Multifamily Builders & Developers and Online Database. Drees Homes appointed two new presidents in its Washington, D.C., and Houston Divisions. Alicia Skoug is now President of its Washington D.C. Division. Andrew Howells is now President of its Houston Division.
“I have admired Alicia over the years for her tenacity, intelligence, and strategic thinking. I’m excited to see the enthusiasm and focus she will bring to the leadership of our Washington D.C. Division” said Dave Hausfeld, Southeast Region President of Drees Homes, on Skoug’s promotion to division president. Skoug will step into the position held by Skip Causey, who will retire this month. Skoug brings a diverse background to Drees. She started with Drees in May of 2012 as an Area Manager responsible for land acquisition, sales, and management of the design center. Since 2017 she has been primarily focused on land acquisitions and has secured Drees in several large master-planned communities and other well-positioned locations. Skoug also currently serves as the 2019 President of the Northern Virginia Builders Industry Association. Skoug holds a BS from Clemson University in Marketing with a minor in Entrepreneurship. In Alicia’s 20 years in the homebuilding industry, she has served on the Washington Metropolitan Sales and Marketing Council (WMSMC) and NVBIA Membership Committee. She holds a MIRM through NAHB which is a Master of Residential Marketing and she's also a founding member and former co-chair of the Women in the Building Industry Committee (WBI). “Andrew is a proven leader that has been involved through the years in all facets of our business. During Andrew’s career, I have taken note of his commitment to quality, strategic thinking, and ability to adapt and excel in any role he has taken on. I’m excited to see how Andrew’s leadership will bring success to our Houston Division.” said David Harbin, Texas Region President, on Howells’ new division president role. Howells has spent his 25-year career with Drees Custom Homes following his graduation of Texas A&M University, where he received his Undergraduate and Master’s Degrees. He started with Drees as the first Builder Trainee in Dallas in June of 1993. He was soon promoted to Construction Manager in Dallas in 1998. Howells transferred to Austin in 2001 as a Construction Manager but also served in other roles in Austin, including Operations. Just prior to his promotion to Houston Division President, Howells was appointed as the Drees On Your Lot General Manager in Austin. The Houston top spot was previously held by Christian Sommer, who recently took over as President & CEO at Grand Dominion Homes in Houston. Reported by Drees Homes Press Release (April 3, 2019) For complete information on Drees Homes, including all corporate, region and division offices and top personnel, refer to The National Builders Directory and Online Database. Lennar Corp. has acquired a rare 41.5-acre development site in San Diego with plans to build a 601-home community. Like other markets in Southern California, San Diego has a housing shortage. This new home community, which is set to deliver next year, aims to address the need for more housing supply with a broad mix of home styles, including 99 single-family homes, 105 triplex homes, 120 townhomes and 277 apartments.
“Demand for housing in general in San Diego continues to outstrip supply annually,” Kevin Nolen, a director at Cushman & Wakefield, told GlobeSt.com. “Single-family housing demand in the entry-level category continues to be one of the places that continues to shine, despite some overall sluggishness in housing demand due to an increase in interest rates. The area the project is being developed is known for larger single family homes, so the entry level housing being built will be welcome for buyers looking to be in the area but have previously been priced out.” Lennar purchased the property from Atlantic Pacific Cos. for an undisclosed price, and Nolen represented Lennar in the transaction, along with his Cushman & Wakefield colleagues Tim Winslow and Jason Kimmel. “This redevelopment site was underutilized and had the proper zoning in place to allow for a development of this nature. The owner was a long-term holder and apartment owner,” says Nolen. “We presented to them a scenario in which they could remain an apartment owner on the site by selling off a section of the property to a for-sale developer. The for-sale developer, Lennar, would run the project through entitlements and deliver the original owner a pad to which they could build back new apartments to rent. It was a win-win for both the buyer and the seller.” This was an unusual opportunity, but in general, land sites, particularly of this size, are a an unusual find in San Diego. “It is extremely rare to find a site of this size in San Diego,” adds Nolen. “Much of the remaining large tracts of land are located on the edges of the suburbs and are raw land developments. Those types of developments, however, can present added challenges such as potentially being less favored by locals who may view them as sprawl, along with new issues that the raw land developments back into fire prone areas.” For Lennar, the site was a perfect fit for a housing development. It is located in Rancho Penasquitos, a suburb in North County. In addition to building the housing community, it plans to invest an additional $10 million in infrastructure improvements, like sidewalks, landscaping, a bike lane along Carmel Mountain Road, new traffic signals along Carmel Mountain Drive and a sound wall along Interstate 15. “The project also provided a unique opportunity to provide housing to a range of demographics, from the first time homebuyer to a second homebuyer with an expanding family,” says Nolen. “The location in one of San Diego’s northern neighborhoods known for excellent school districts and proximity to jobs also made it a no brainer to get involved with. The property also was unique in that it was a large redevelopment parcel, which has become a priority for cities and states across California rather than raw land development.” With demand for more housing in San Diego, there is also demand from developers for quality land sites. Nolen’s team currently has another site in East Mission Valley. The 22-acre site is already entitled for nearly 1,000 rental homes. “Our team is actively searching for projects that have size as it presents the best opportunity for developers to build with the greatest economies of scale,” he adds. “Other large projects of size that we currently have available include multiple developments in downtown San Diego, within Little Italy, Cortez Hill and the East Village.” Reported by GlobeSt (April 3, 2019) For complete information on Lennar, including all corporate, region and division offices and top personnel, refer to The National Builders Directory and Online Database. Carmel Partners has made two additions to its senior management team along with several senior-level promotions.
Andy Sands, a veteran investor with over 27 years of real estate experience, has joined Carmel as Managing Partner, Head of Asset Management and Portfolio Strategy. Previously, Sands was a Managing Director at Lowe Enterprises Investors and head of its multifamily business, focused on acquiring and developing assets throughout the U.S. Matt Golden joined Carmel as a Partner in the newly created role of General Counsel. He brings more than 25 years of experience in real estate law, having previously served as General Counsel for Beacon Capital Partners and, before that, as a Partner at Debevoise & Plimpton in its real estate practice. Sands will report to Mike LaHorgue, Senior Managing Partner and President, and Golden will report to Dennis Markus, Senior Managing Partner and CFO. Carmel also recognized the following senior level promotions:
LaHorgue commented that, "We are fortunate to welcome Andy and Matt to the senior management team at Carmel. Andy brings deep experience to Carmel allowing us to utilize his skill set in the merged role of Head of Asset Management and Head of Portfolio Strategy. We are also pleased to announce the creation of a General Counsel position, and are privileged to have someone of Matt's caliber in this role. Promoting Trey, Kim, Dennis, and Liz to these senior level positions reflects their continuous contribution to the success of Carmel." Carmel Partners is a leading investor in the U.S. multifamily market with a focus on development, renovation, and selective debt investments. Reported by company press release (April 1, 2019) For complete information on Carmel Partners, including all corporate, region and division offices and top personnel, refer to The Directory of Multifamily Builders & Developers and Online Database. |
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