Brookfield is poised to buy 70 acres of land from the City of Irvine for $654 million, with plans to build more than 1,200 homes in what could be the last single-family residential village in the city.
The city approved the land deal with the Canada-based developer last week to build the Gateway Village at the northeast corner of Jeffrey Road and Portola Parkway, the Orange County Register reported.
Depending on the final deal, the Toronto-based developer could pay Irvine $654 million, or $9.34 million per acre. Escrow is expected to close within six months, a city official said.
Plans for Gateway Village include 927 single-family homes, which would average 1,844 square feet, with a typical asking price of $1.4 million, according to a staff report. The project would also include 300 affordable apartments, to be built throughout the development.
The project, among the last single-family residential villages in Irvine, would include parks, a community garden and a recreation center with a clubhouse, meeting rooms, event areas and swimming pools.
Pending approvals, Brookfield could break ground in 2026 or 2027, with home sales to begin in 2027.
Proceeds from the land sale would pay off the city’s purchase of the All American Asphalt Plant, which the city bought a year ago for $285 million, then closed last fall, Pete Carmichael, assistant city manager, told the Register.
The purchase of the asphalt plant was made possible by a concurrent deal with the Newport Beach-based Irvine Company to give the city 475 acres of land.
Between 70 and 80 acres was to be allocated for a housing development, with the sale expected to cover the cost of the plant, according to a city report. The land was estimated to be worth $330 million.
Instead, the City of Irvine could fetch $654 million — a 118 percent jump in value in 12 months.
Along with its asphalt plant purchase, the city planned to create a 700-acre Gateway Preserve, which will include the 11-acre plant, with hiking and biking trails through green spaces, native gardens and outdoor classrooms.
Brookfield, a global investment giant with an office in Costa Mesa, has suffered huge losses on its local office properties. But it has growing investments in California housing.
In February, its New York-based Brookfield Properties and a local investor bought $915 million in troubled mortgages tied to 2,165 apartments in San Francisco, owned by Veritas.
Last month, Brookfield Properties and the City of Concord hammered out preliminary plans to redevelop the former Concord Naval Weapons Station with more than 12,000 homes and 6 million square feet of offices, shops and restaurants in the East Bay.
— Dana Bartholomew
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