FivePoint Holdings LLC announced the sale of 781 home sites at Valencia, formerly Newhall Ranch, in the fourth quarter of 2019.
Of those home sites, 711 have closed with proceeds totaling approximately $135 million, while the remaining 70 are expected to close in the first half of 2020.
“This is a milestone for the company, as we have been waiting for this day for a long time,” said Emile Haddad, chairman and CEO of FivePoint, in a prepared statement Monday. “These are the first deliveries of the approximately 21,000 homesites anticipated to be delivered next in Valencia, building on the reputation of one of the premier master-planned communities in the country that already has over 60,000 existing residents and 60,000 permanent jobs.”
As Los Angeles is one of the most constrained housing markets in the country, this new community will help to mitigate the growing need for housing, Haddad said.
“This development will be a vibrant and dynamic asset for our valley and all of L.A. County, creating new housing opportunities that are needed in the state,” said Holly Schroeder, president and CEO of the SCV Economic Corporation, via email Monday. “This project contributes to the Santa Clarita Valley’s job base with construction jobs now, and will provide long-term employment opportunities for our residents.”
The new community is expected to provide a wide range of homes with amenities, such as high-quality public education, as well as healthcare and lifestyle-focused uses, in addition to 11.5 million square feet of commercial space and 10,000 acres of open space. It is also set to be the first net-zero greenhouse gas community of its size in America.
The total financial results of this sale are expected to be included in FivePoint’s next earnings report.