FivePoint Sells $258 Million of Land in Great Park

FivePoint Holdings is piling up cash with land sales in Irvine’s Great Park Neighborhoods.

The Irvine-based developer sold 326 home sites in the Great Park Neighborhoods in the third quarter for a total of $257.7 million, the Orange County Business Journal reported.

The deals were made with four home builders for land totaling 26.6 acres in the northern part of the city. The individual sales ranged in price from $8.5 million to $11 million per acre, or an average of about $790,000 per home lot and $9.7 million per acre.

“Our third quarter performance was underpinned by resilient home buyer and builder demand at the Great Park, which remains solid despite continuing pressure from higher interest rates and affordability headwinds,” FivePoint CEO Dan Hedigan said on a third-quarter earnings call last month. “While buyers remain somewhat cautious, the underlying imbalance between housing supply and demand in this core California market continues to support our land sale activity.”

In the last quarter, builders sold 187 homes at the Great Park Neighborhoods, up from 112 in the second quarter. FivePoint, developer for the Great Park, has six actively selling programs expected to sell out by early next year, with an additional 10 new programs anticipated to begin sales either later this year or early next year.

Currently, sales are ongoing at Luna Park, the eighth community to open for occupancy at the Great Park Neighborhoods since the development opened in 2013. Homes in Luna Park start at about $1.2 million with larger homes fetching as much as $2.5 million.

Overall, more than 7,000 homes and 9,000 home sites have sold at the Great Park Neighborhoods since it opened. The development is currently entitled for 10,500 homes.

Still, while FivePoint was able to sell land at Great Park last quarter, the Irvine developer didn’t close any land sales at Valencia, its other master-planned development near Six Flags in Santa Clarita; it hasn’t sold any land there in about a year. The company has yet to begin sales at its two developments in San Francisco.

— Chris Malone Méndez