Scottsdale, Arizona-based homebuilder Taylor Morrison has formed a joint venture with its two largest shareholders – funds managed by Oaktree Capital Management and TPG Capital – to acquire and develop Marblehead, a 195.5-acre parcel in San Clemente, California.
The partnership acquired the coastal residential development from a subsidiary of the estate of Lehman Brothers for approximately $215 million, according to various sources. Oaktree and TPG will each own a 40 percent stake in the property, while Taylor Morrison will own the remaining 20 percent stake. The acquisition is expected to close later this month.
“Marblehead is a truly unique site and one of the last undeveloped tracts of coastal land in California,” said Sheryl Palmer, president and chief executive of Taylor Morrison, in a statement. “For Taylor Morrison, this venture reflects our objectives of strategically utilizing our strong balance sheet, selectively investing in our land portfolio to meet future demand and providing continued returns for our shareholders.”
Construction on the Marblehead site, which can accommodate more than 300 luxury homes, is expected to begin in 2015. Taylor Morrison will be responsible for land development and homebuilding.
“Oaktree is always looking for premiere real estate opportunities with first-class partners,” added Jason Keller of Oaktree. “Our long-standing relationship with TPG and our belief that Taylor Morrison is the right developer and builder to execute on this remarkable site makes this the perfect fit.”
In March 2011, Oaktree and TPG acquired Taylor Morrison when they joined forces with the former founder of Intrawest, Joe Houssain, to purchase the North America businesses of UK homebuilder Taylor Wimpey. The trio paid $955 million for Taylor Wimpey’s US and Canadian arms, which build single-family detached and attached homes in Arizona, California, Colorado, Florida and Texas.