IRVINE, CA—GlobeSt.com has learned exclusively that Land Advisors Organization, California Division, has completed the sale of Lehman Brothers Holdings Inc.'s residential-land portfolio for its western region following the latter firm's bankruptcy, which was declared in 2008. The total consideration for the asset liquidation was more than $700 million.
After Lehman Brothers declared the largest US corporate bankruptcy in history on September 15, 2008, LEHMQ's Chapter 11 trustee overseeing the real estate projects hired LAO-CA in 2009 to liquidate three master-planned communities in Southern California. Terry Ruckle, principal at LAO-CA, has a long-standing professional relationship with the LEHMQ team, and that relationship, coupled with LAO-CA's land-market knowledge, apparently proved key for the trustee. Over the course of the next eight years, Land Advisors sold 19 assets in the portfolio, which represented approximately 37,000 total residential units over 20,000 acres.
Ruckle says, “We are proud of the relationship we built with Lehman over the years. Our knowledge, expertise, and transparency were critical to keeping this relationship through the different structural and leadership changes Lehman has been facing since 2008. Because of a finely tuned process and our knowledge of the West Coast market, we were able to dispose of these complicated transactions at the most opportune time to maximize the value for our client.”
The LEHMQ portfolio included several of California's most impressive and unique residential developments. LAO-CA negotiated Marblehead Development Partners LLC's—a joint venture with Taylor Morrison Home Corp. and its two largest shareholders, funds managed by Oaktree Capital Management, L.P. and TPG—purchase of Marblehead in April 2014. Marblehead, now known as Sea Summit at Marblehead, consists of 195.5 coastal acres in San Clemente, CA, and is one of Southern California's last new communities overlooking the Pacific Ocean. The rare development opportunity included 308 fully entitled finished lots in Orange County, with direct access to the beach, I-5 freeway and retail centers.
LAO-CA also facilitated the sale of Oak Knoll in May 2014 to SunCal. Oak Knoll is a 170-acre master planned community located in Northern California's central East Bay area, Oakland.
In addition, Pacifica San Juan, a 318-acre coastal enclave located in San Juan Capistrano, sold to Pacific Point Development Partners LLC—a venture between DMB Pacific Ventures LLC, Taylor Morrison, and funds managed by Oaktree—in May 2015. And LAO-CA closed on the last asset within the LEHMQ's western-region residential-land-assets portfolio, which is located in Beaumont, CA, in December 2016.
David Kidder, president at LAO-CA, says, “This is another great example of our ability to analyze complex land and development opportunities, identify qualified investors and developers and present a compelling story to maximize economic value for our clients.”
Stay tuned for an upcoming interview with Kidder on how the residential and multifamily sectors are changing.
IRVINE, CA—GlobeSt.com has learned exclusively that Land Advisors Organization, California Division, has completed the sale of Lehman Brothers Holdings Inc.'s residential-land portfolio for its western region following the latter firm's bankruptcy, which was declared in 2008. The total consideration for the asset liquidation was more than $700 million.
After Lehman Brothers declared the largest US corporate bankruptcy in history on September 15, 2008, LEHMQ's Chapter 11 trustee overseeing the real estate projects hired LAO-CA in 2009 to liquidate three master-planned communities in Southern California. Terry Ruckle, principal at LAO-CA, has a long-standing professional relationship with the LEHMQ team, and that relationship, coupled with LAO-CA's land-market knowledge, apparently proved key for the trustee. Over the course of the next eight years, Land Advisors sold 19 assets in the portfolio, which represented approximately 37,000 total residential units over 20,000 acres.
Ruckle says, “We are proud of the relationship we built with Lehman over the years. Our knowledge, expertise, and transparency were critical to keeping this relationship through the different structural and leadership changes Lehman has been facing since 2008. Because of a finely tuned process and our knowledge of the West Coast market, we were able to dispose of these complicated transactions at the most opportune time to maximize the value for our client.”
The LEHMQ portfolio included several of California's most impressive and unique residential developments. LAO-CA negotiated Marblehead Development Partners LLC's—a joint venture with Taylor Morrison Home Corp. and its two largest shareholders, funds managed by
LAO-CA also facilitated the sale of Oak Knoll in May 2014 to SunCal. Oak Knoll is a 170-acre master planned community located in Northern California's central East Bay area, Oakland.
In addition, Pacifica San Juan, a 318-acre coastal enclave located in San Juan Capistrano, sold to Pacific Point Development Partners LLC—a venture between DMB Pacific Ventures LLC, Taylor Morrison, and funds managed by Oaktree—in May 2015. And LAO-CA closed on the last asset within the LEHMQ's western-region residential-land-assets portfolio, which is located in Beaumont, CA, in December 2016.
David Kidder, president at LAO-CA, says, “This is another great example of our ability to analyze complex land and development opportunities, identify qualified investors and developers and present a compelling story to maximize economic value for our clients.”
Stay tuned for an upcoming interview with Kidder on how the residential and multifamily sectors are changing.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
