Brea Walden LLC paid $6.2 million to Houston-based Nuevo Energy Co., which is the largest independent producer of oil and gas in California. The parcel abuts Tonner Hills, Nuevo's 790-acre proposed residential project.
"We are pleased to have realized a small portion of the value of our California real estate portfolio and we believe that this transaction bodes well for a larger one still to come," says Phillip Gobe, Nuevo's interim president and CEO. Nuevo, which is currently seeking entitlement for Tonner Hills, plans to sell that land as well.
"We acquired oil and gas assets in April 1996 and the land came along with that purchase," says Barbara Forbes, a Nuevo spokeswoman. Since real estate is not the company's core business, it has decided to sell the parcels, she explains.
Land available for residential development continues to be in short supply all across Southern California, which has added to the housing problem. "The transaction value (of the 13-acre Brea parcel) reflects the persisting scarcity of housing in Orange County in general, and the high level of demand for land suitable for residential development in the Brea area specifically," Gobe says.
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