Finalists in the bidding for the vaunted 200-acre California coastal property in Orange County known as Marblehead Coastal have been winnowed to a single home builder in negotiations with seller Lehman Brothers Holdings and its representative, Land Advisors Organization.
Who wins? And is the winner a money-maker?
We’re hearing that the final sale price for the parcel, which maps to 308 entitled home properties in one of the highest-profile deals still to be done in that part of California, could go for a range between $230 million and $235 million, or from $700,000 to $770,000 per building lot.
This OC Housing Newspiece raises the question of whether and how a home builder might market the new-home community profitably, even at that exorbitant per-lot price.
About a month ago, the process called for final bids, and resulted in a short-list of potential buyers that included a Brookfield Residential/Standard Pacific Homes joint bid, and separate bids from Taylor Morrison, The New Home Company, and Toll Brothers. Additional bids of substance included an entity-level offer from a one of the large private equity players, as well as one from one of Southern California’s up-and-comer home building enterprises, Woodbridge Pacific Group, with backing from financial player Anchorage Capital.
Word is that one final bidder–we’re hearing it’s Taylor Morrison or Toll Brothers, and most likely the former– is in a letter-of-agreement stage with the sellers, although final negotiations may continue for a bit.
Learn more about markets featured in this article: Los Angeles, CA.
