Five Point Holdings has sold 84 acres at Great Park Neighborhoods in Irvine for $357.8 million.
The Irvine-based master developer sold 798 homesites last quarter to various home builders, the Orange County Business Journal reported. The deal works out to nearly $4.3 million an acre, and $448,000 per home lot.
The buyer of a major portion of the land was Miami-based Lennar, a cofounder of FivePoint with a 40 percent stake in the publicly traded firm. The remaining buyers were not disclosed.
The sales were largely in District 5 South, the next planned community at Great Park Neighborhoods, the FivePoint-controlled land that largely surrounds the city’s Great Park.
The deals mark the largest homesite sale for FivePoint since 2021, when it sold 887 sites. Last year, it sold 61 sites.
“We’re seeing strong homebuilder interest in acquiring homesites at Great Park,” CEO Dan Hedigan said during a conference call with analysts. “The open builder neighborhoods at the Great Park continue to sell homes, with a strong increase in sales in the first half of this year compared to the second half of 2022.”
He said builders sold 177 homes during the second quarter.
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FivePoint also said it has recently entered escrow for the sale of another 82 homesites and is negotiating the sale of another 104 homesites expected to close early next year.
Since starting housing development on the project in 2013, FivePoint has sold more than 8,000 homesites. It has approvals for 10,500 homes, alongside commercial development.
FivePoint sold 42 acres of vacant land early this year to Irvine-based TGS Management for $240 million, or $5.7 million an acre, to build a data processing hub.
The deal with TGS represents more than one-fifth of the land available for commercial development in the Great Park Neighborhoods, approved for up to 4.7 million square feet of office and commercial space.
— Dana Bartholomew