IRVINE, CA--(Marketwired - Jun 5, 2014) - Foremost Communities and its related entities have sold 622 lots in three separate residential developments in California's Inland Empire for a combined $62 million to D.R. Horton, the nation's largest homebuilder.
The sale includes 246 finished lots -- 178 lots at Mission Estates in the City of Jurupa Valley and 68 lots at Rosena Ranch, a master-planned community in the Lytle Creek area of San Bernardino County -- as well as 376 fully entitled, but undeveloped lots at Bella Strada, a master planned community located within the City of Fontana.
"We acquired these properties several years ago when the land market in the Inland Empire was at a low point," said Steve Cameron, president of Foremost, one of the most active land buyers in Southern California since its launch in 2007. "At this point, Foremost has added all the value we can through modified entitlements and cleaned-up development issues. We've seen significant market lift and have sold these properties to achieve our business plan objectives."
Foremost's financial partner on two of the properties was Starwood Capital Group Global, a private, U.S.-based investment firm focused on global real estate.
Stephen Fitzpatrick, D.R. Horton's Southern California Division President, said, "We appreciated the opportunity and enjoyed working with the professional team at Foremost to successfully complete this land acquisition. We believe these properties are well-situated to further strengthen our existing land portfolio and will be a key part of our continued success in the Inland Empire."
In the past seven years, Foremost has acquired ownership or management of nearly 7,800 lots across Southern California. To date the residential land investor has sold approximately 1,300 of those lots, and retains control of an estimated 6,500 lots.
Cameron is bullish on the local housing market: "We have a great portfolio of residential land in and we continue to seek further investment opportunities in Southern California to add to our holdings. As our properties become ready for homebuilders and market conditions continue to improve, we plan to periodically bring additional lots to the market."
Tom Dallape and Norm Scheel of The Hoffman Company were key brokers in putting the deal together. Province West and Land Advisors also represented Foremost in the sale.
About Foremost Communities, Inc.
Foremost Communities, Inc. is a premier residential land investment company based in Irvine, Calif., established to acquire property in strategic locations that can be entitled into finished lots for sale to merchant homebuilders. In addition, the firm partners with other land developers and will provide both equity and debt to recapitalize existing projects. Founded in 2007, Foremost now owns or manages approximately 6,500 residential lots in California and is actively pursuing new land acquisition opportunities throughout the state. For more information, visit www.foremostcommunities.com
About Starwood Capital Group Global, LP
Starwood Capital Group is a private, U.S.-based investment firm with a core focus on global real estate. Since the group's inception in 1991, the firm has raised nearly $24 billion of equity capital and acquired over $50 billion in assets. Starwood Capital Group currently has $34 billion of assets under management. Starwood Capital Group maintains offices in Greenwich, Atlanta, San Francisco, Washington, D.C., Los Angeles, Chicago and Miami, and affiliated offices in London, Luxembourg, Paris, Frankfurt and Sao Paulo. Starwood Capital Group has invested in nearly every class of real estate on a global basis, including office, retail, residential, senior housing, golf, hotels, resorts and industrial assets. Starwood Capital Group and its affiliates have successfully executed an investment strategy that includes building enterprises around core real estate portfolios in both the private and public markets. Additional information about Starwood Capital can be found at www.starwoodcapital.com.
About D.R. Horton
Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 79 markets in 27 states in the East, Midwest, Southeast, South Central, Southwest, and West regions of the United States. D.R. Horton is America's largest builder as reported by Builder magazine for twelve straight years. For over 35 years, D.R. Horton has consistently delivered top-quality new homes to homebuyers across the nation. The livable floor plans, energy-efficient features, and robust new home warranty demonstrate our commitment to excellence in construction. D.R. Horton exhibits leadership in residential development through design innovation, superior craftsmanship, and responsiveness to the needs of its customers. The simple vision that began over 35 years ago represents years of value and security when you choose America's Builder to make your dreams come true. For more information, visit our website at www.drhorton.com. D.R. Horton is an Equal Housing Opportunity Builder.