wrbones
05-27-03, 09:31 PM
Homebuilders to Transform Former Tustin, Calif., Marine Base
The Orange County Register (Nov 26, 03:40 AM) Nov. 26--TUSTIN, Calif.--New homes will soon stand where Marines once marched and helicopters hovered. Two homebuilders have paid $208.5 million for the right to build 1,910 homes on the former Tustin Marine Corps Air Station.
The homes will range from affordable--by Orange County standards--to luxurious. These days, long-vacated beige and brown military housing sits on parts of the 235 acres that the builders purchased in September.
William Lyon Homes of Newport Beach and Miami-based Lennar Homes teamed up to pay the Navy for three parcels called Tustin Villas, Moffett Meadows and Marble Mountain. They plan to raze the military housing, built from the 1960s to 1990s, and start replacing it with new homes by the end of 2003, establishing the first development since the 1,600-acre base closed in 1999.
The builders plan seven to 10 home designs from 1,200 to 3,000 square feet, said Emil Haddad, Lennar Corp.'s regional president. Among the less expensive homes will be about 290 priced below $250,000 ? a city requirement.
While Haddad declined to say what a 3,000-square-foot model would cost, he noted that in today's market, the going rate would be in the $700,000s. An average of about eight homes will be built per acre. The broad range of homes for sale is designed to have wide appeal. "If you're basically (selling) all one-sized products, you are going to be catering to a narrow band of buyers," Haddad said.
Craig Atkins, a principal at land brokerage O'Donnell/Atkins Co. in Costa Mesa, said the mix is no surprise. "You have to sell everything, from condos to luxury homes," he said. "Each type can only attract so many buyers a year."
The 235 acres the two companies bought is sizable but not remarkable. Ladera Ranch, outside Mission Viejo, for example, will cover 2,400 acres. The companies entered the property auction this year separately, but then partnered under the name HomeHelp to increase chances of getting more than one parcel, said Wade Cable, William Lyon chief executive.
Both companies said their final bids didn't top what they planned to spend. The cost of the land--about $900,000 an acre--surprised Atkins. "That price tag was higher than what I thought it would go for," he said.
Some of the bidders who worked with Atkins expected the parcels to sell for 15 percent to 20 percent less than the final $208.5 million bid. They felt the parcels should have cost less, considering the need for environmental cleanup and razing of the old military housing.
The builders paid a fair price, said Bob Reicher, a real estate consultant at Market Profiles in Santa Ana. "There isn't much land for sale in Orange County," he said. "There are builders willing to pay $2 million an acre in central and south county."
Real estate consultants expect the builders to profit, considering the prime location. "You'll see higher-priced housing than we have ever seen in Tustin," Atkins said, "because they paid so much for the land, because it's a great location and because of a lack of supply in the overall marketplace."
The Tustin development is business as usual for Lennar, which is building on former military bases in Vallejo and San Francisco. And William Lyon's versatility is evident in its range of homes--from 1,070-square-foot condos for $300,000 in Irvine to two-story, 4,700-square-foot mansions in San Clemente that start at $900,000. But the Tustin base does present unique challenges.
The Navy is cleaning up a small area of the 104-acre Tustin Villas parcel, said Lee Saunders, a Navy spokesman in San Diego. He expects the cleanup to take four to five years. The Navy has completed environmental work on the other two parcels. Real estate experts are concerned about the length of the cleanup and how extended work could hurt the builders financially.
The homes that Lennar and William Lyon plan eventually would be surrounded by 2,690 more residences, as well as schools, parks and offices on land yet to be sold. Next spring, Tustin will begin selecting one developer for 700 to 800 acres the Navy gave the city.
One of two huge hangars on this land can be reused, but that decision will be up to the developer, said Dana Ogdon, program manager with the Tustin redevelopment agency. The county is considering turning the other hangar, which is not on the 700 to 800 acres, into a veterans' museum.
Lennar hopes its recent purchase will boost its chances of being selected by the city for the next phase of the development. William Lyon hasn't made any bid to be the developer. The development plans mean the character of the area will change dramatically.
Diane Schlesinger, 40, who lives minutes from the base, is not happy about the redevelopment. "I'm not thrilled about more traffic," she said. "It would be wonderful if they made the entire area a park."
TUSTIN MARINE BASE TIMELINE
History of defunct Tustin base, going back more than 60 years:
March 1942: Navy selects unincorporated farmland near Santa Ana as the site of the "Southern California Lighter-Than-Air Station." The land reportedly includes the world's largest lima-bean field. Owner James Irvine refuses to sell, so Navy condemns the land under Second War Powers Act.
June 1978: Tustin annexes land.
July 1991: Marine Corps announces it will close Tustin base.
July 1999: Last Marines depart.
Jan. 2001: Tustin City Council unanimously approves development of homes, schools, a golf course and businesses.
March 1, 2002: Navy and Tustin reach agreement allowing city to develop at the base.
May 14: Navy deeds the 977 acres to Tustin.
July 18: Online auction of three Navy-owned parcels begins.
Sept. 26: Online auction ends after three parcels totaling 235 acres sell for $208.5 million.
PROFILES OF WILLIAM LYON HOMES AND LENNAR HOMES
WILLIAM LYON HOMES:
Established: 1956
Headquarters: 4490 Von Karman Ave., Newport Beach
Where it does business: California, Arizona and Nevada
Employees: 497
Third-quarter revenue, ended Sept. 30: $176.4 million in 2002, $107.6 million in 2001
Third-quarter earnings: $13.8 million in 2002, $11.7 million in 2001
LENNAR HOMES:
Established: 1954
Headquarters: 700 NW 107th Ave., Miami
Where it does business: 17 states, including California
Employees: 7,728
Third-quarter revenue, ended Aug. 31: $1.7 billion in 2002, $1.4 billion in 2001
Third-quarter earnings: $142.2 million in 2002, $106.7 million in 2001
-----
To see more of The Orange County Register, or to subscribe to the newspaper, go to http://www.ocregister.com
--------------------------------------------------------------------------------
Privacy & Security l Customer Service l About Us
USMChq.com is a division of Mil2Mil. Copyright 2000-2002. All Rights Reserved
Neither the United States Marine Corps, nor any other component of the Department of Defense has endorsed, approved, or authorized this service.
The Orange County Register (Nov 26, 03:40 AM) Nov. 26--TUSTIN, Calif.--New homes will soon stand where Marines once marched and helicopters hovered. Two homebuilders have paid $208.5 million for the right to build 1,910 homes on the former Tustin Marine Corps Air Station.
The homes will range from affordable--by Orange County standards--to luxurious. These days, long-vacated beige and brown military housing sits on parts of the 235 acres that the builders purchased in September.
William Lyon Homes of Newport Beach and Miami-based Lennar Homes teamed up to pay the Navy for three parcels called Tustin Villas, Moffett Meadows and Marble Mountain. They plan to raze the military housing, built from the 1960s to 1990s, and start replacing it with new homes by the end of 2003, establishing the first development since the 1,600-acre base closed in 1999.
The builders plan seven to 10 home designs from 1,200 to 3,000 square feet, said Emil Haddad, Lennar Corp.'s regional president. Among the less expensive homes will be about 290 priced below $250,000 ? a city requirement.
While Haddad declined to say what a 3,000-square-foot model would cost, he noted that in today's market, the going rate would be in the $700,000s. An average of about eight homes will be built per acre. The broad range of homes for sale is designed to have wide appeal. "If you're basically (selling) all one-sized products, you are going to be catering to a narrow band of buyers," Haddad said.
Craig Atkins, a principal at land brokerage O'Donnell/Atkins Co. in Costa Mesa, said the mix is no surprise. "You have to sell everything, from condos to luxury homes," he said. "Each type can only attract so many buyers a year."
The 235 acres the two companies bought is sizable but not remarkable. Ladera Ranch, outside Mission Viejo, for example, will cover 2,400 acres. The companies entered the property auction this year separately, but then partnered under the name HomeHelp to increase chances of getting more than one parcel, said Wade Cable, William Lyon chief executive.
Both companies said their final bids didn't top what they planned to spend. The cost of the land--about $900,000 an acre--surprised Atkins. "That price tag was higher than what I thought it would go for," he said.
Some of the bidders who worked with Atkins expected the parcels to sell for 15 percent to 20 percent less than the final $208.5 million bid. They felt the parcels should have cost less, considering the need for environmental cleanup and razing of the old military housing.
The builders paid a fair price, said Bob Reicher, a real estate consultant at Market Profiles in Santa Ana. "There isn't much land for sale in Orange County," he said. "There are builders willing to pay $2 million an acre in central and south county."
Real estate consultants expect the builders to profit, considering the prime location. "You'll see higher-priced housing than we have ever seen in Tustin," Atkins said, "because they paid so much for the land, because it's a great location and because of a lack of supply in the overall marketplace."
The Tustin development is business as usual for Lennar, which is building on former military bases in Vallejo and San Francisco. And William Lyon's versatility is evident in its range of homes--from 1,070-square-foot condos for $300,000 in Irvine to two-story, 4,700-square-foot mansions in San Clemente that start at $900,000. But the Tustin base does present unique challenges.
The Navy is cleaning up a small area of the 104-acre Tustin Villas parcel, said Lee Saunders, a Navy spokesman in San Diego. He expects the cleanup to take four to five years. The Navy has completed environmental work on the other two parcels. Real estate experts are concerned about the length of the cleanup and how extended work could hurt the builders financially.
The homes that Lennar and William Lyon plan eventually would be surrounded by 2,690 more residences, as well as schools, parks and offices on land yet to be sold. Next spring, Tustin will begin selecting one developer for 700 to 800 acres the Navy gave the city.
One of two huge hangars on this land can be reused, but that decision will be up to the developer, said Dana Ogdon, program manager with the Tustin redevelopment agency. The county is considering turning the other hangar, which is not on the 700 to 800 acres, into a veterans' museum.
Lennar hopes its recent purchase will boost its chances of being selected by the city for the next phase of the development. William Lyon hasn't made any bid to be the developer. The development plans mean the character of the area will change dramatically.
Diane Schlesinger, 40, who lives minutes from the base, is not happy about the redevelopment. "I'm not thrilled about more traffic," she said. "It would be wonderful if they made the entire area a park."
TUSTIN MARINE BASE TIMELINE
History of defunct Tustin base, going back more than 60 years:
March 1942: Navy selects unincorporated farmland near Santa Ana as the site of the "Southern California Lighter-Than-Air Station." The land reportedly includes the world's largest lima-bean field. Owner James Irvine refuses to sell, so Navy condemns the land under Second War Powers Act.
June 1978: Tustin annexes land.
July 1991: Marine Corps announces it will close Tustin base.
July 1999: Last Marines depart.
Jan. 2001: Tustin City Council unanimously approves development of homes, schools, a golf course and businesses.
March 1, 2002: Navy and Tustin reach agreement allowing city to develop at the base.
May 14: Navy deeds the 977 acres to Tustin.
July 18: Online auction of three Navy-owned parcels begins.
Sept. 26: Online auction ends after three parcels totaling 235 acres sell for $208.5 million.
PROFILES OF WILLIAM LYON HOMES AND LENNAR HOMES
WILLIAM LYON HOMES:
Established: 1956
Headquarters: 4490 Von Karman Ave., Newport Beach
Where it does business: California, Arizona and Nevada
Employees: 497
Third-quarter revenue, ended Sept. 30: $176.4 million in 2002, $107.6 million in 2001
Third-quarter earnings: $13.8 million in 2002, $11.7 million in 2001
LENNAR HOMES:
Established: 1954
Headquarters: 700 NW 107th Ave., Miami
Where it does business: 17 states, including California
Employees: 7,728
Third-quarter revenue, ended Aug. 31: $1.7 billion in 2002, $1.4 billion in 2001
Third-quarter earnings: $142.2 million in 2002, $106.7 million in 2001
-----
To see more of The Orange County Register, or to subscribe to the newspaper, go to http://www.ocregister.com
--------------------------------------------------------------------------------
Privacy & Security l Customer Service l About Us
USMChq.com is a division of Mil2Mil. Copyright 2000-2002. All Rights Reserved
Neither the United States Marine Corps, nor any other component of the Department of Defense has endorsed, approved, or authorized this service.