The Real Deal Miami

Troubled K. Hovnanian sells part of Coral Springs community to Brookfield

Homes at Coral Lago start in the mid $400Ks
By Keith Larsen | February 01, 2019 02:30PM

Bruce Flatt, CEO of Brookfield Asset Management (Credit: Zillow)

The troubled homebuilder K. Hovnanian just sold a large portion of its new home community in Coral Springs to a subsidiary of Brookfield Asset Management for $17.6 million.

Brookfield Holdings Lago bought 119 plots at K. Hovnanian’s Coral Lago development, property records show. The rest of the homes and plots were previously sold to individual owners.

A Blackstone affiliate bought the site in 2015 for $12.1 million, giving Hovnanian the option of buy lots and build new homes.

Prices at the community start in the mid $400,000’s. Coral Lago has five home designs with one to two stories, three to five bedrooms, up to three-and-a-half baths and two-car garages.

K. Hovnanian, a New Jersey-based homebuilder, has a number of projects in South Florida and throughout the country. In January, its parent company warned that its stock could be delisted from the New York Stock Exchange for falling under $1, according to a filing with the Securities and Exchange Commission. The company’s issues stem from piling up lots of debt before the financial crisis.

Brookfield is one of the largest asset managers in the U.S. It announced this week that it closed on a $15 billion property fund. Brookfield has already made 10 investments using more than $5 billion from the fund, including its purchase of 666 Fifth Avenue from the Kushners and its privatization of Forest City Realty Trust.