Saratoga Resi Development Site Sold to Lennar, TPG

Lennar Corporation and TPG bought one of the last large undeveloped residential sites in Saratoga days before the start of construction.

Lennar and TPG acquired the 11.6-acre site at 14001 Chester Avenue for $109.7 million, the Silicon Valley Business Journal reported, citing documents filed with the Santa Clara County Clerk-Recorder’s Office. The seller, Vineyard One Holdings, an LLC associated with City Connect Companies, purchased the site last year for $30.6 million.

San Jose-based City Connect led the push for development at the Saratoga site in a project known as Vineyard One, spearheading planning and community engagement work before selling to Lennar and TPG. Construction is expected to begin this week.

The deal brings “one of the largest, and likely the last, flat, undeveloped and underutilized parcels of its size in Saratoga” under Lennar and TPG’s stewardship.

Vineyard One will consist of 52 two-story single-family homes and 12 affordable accessory dwelling units. The median sale price for a single-family home in Saratoga is $4.1 million, according to Redfin. The land was once a vineyard, though it has not operated as such in more than two decades.

The plan represents about a quarter of City Connect’s original proposal for the site. In 2023, the firm floated a builder’s remedy effort that called for 85 townhomes, 84 apartments, 24 single-family homes and 45 ADUs. Saratoga residents blasted the proposal, prompting City Connect to submit plans earlier this year for the 52-home, 12-ADU project, San Francisco YIMBY reported.

It’s the latest Saratoga property with a winemaking pedigree to trade hands. Last August, the Saratoga Cemetery District purchased 57.9-acre Savannah-Chanelle Vineyards property for $20 million. The site is slated to become burial grounds.

The City of Saratoga is state mandated to plan for at least 1,700 new residential units by 2031.

— Chris Malone Méndez