Residential developer KB Home has bought the Crosswinds, a planned 269-unit housing project in Morgan Hill, for $76 million, The Real Deal has learned.
The property, a 33-acre site at the southwest corner of Mission View and Half Road, was proposed as a mix of 56 single-family homes, 64 duet-style homes and 149 condominium units. The complex covers four parcels that include 1105 Half Road, a vacant site that was most recently assessed at $10.3 million.
The Morgan Hill City Council approved the development in July last year, according to a previous report from local news outlet Morgan Hill Times. At the time of the approval, the site was “mostly undeveloped” with inactive agricultural fields and grasslands. The deal closed on Sept. 12.
The seller was Dividend Homes. The firm applied for the project in June 2022, leveraging SB 330, a state law that aimed to hasten approval for new housing projects and bar local authorities from imposing housing caps.
While going through the planning process, the project received pushback from local officials because it will partly be built on 16 acres of farmland. As a compromise, Dividend reportedly agreed to pay to preserve an equal amount of farmland acreage elsewhere in the state.
A spokesperson for KB Home said that the firm plans to build the project as it was approved, with the breakdown of units remaining unchanged.
“We look forward to our continued partnership with the City of Morgan Hill, as we are confident Crosswinds will have a positive impact on the community,” said Oren Hershkovich, the regional general manager of KB Home.
KB Home is currently building a large housing project in another part of Santa Clara County. In October last year, the firm got city planning approval to build 1,304 homes on San Jose’s Communications Hill. The project, which will revamp a 140-acre site, will be part of a master planned development in the works for four decades.