SAN CLEMENTE, CA—Taylor Morrison Home Corporation has formed a joint venture with its two largest shareholders to acquire and develop the 195.5 acres of San Clemente coast known as Marblehead.
The partners are a group of funds managed by Oaktree Capital Management, L.P. and TPG Real Estate.
The seaside parcel, which can accommodate more than 300 luxury home site is currently owned by LV Marblehead, a subsidiary owned by Lehman Brothers Holdings. A sale agreement has been reached, closing should take place this month, and construction in the community is expected to begin in 2015.
“Marblehead is a truly unique site and one of the last undeveloped tracts of coastal land in California. It presents a tremendous opportunity that will deepen our land inventory of exceptional sites and further our standard of building high-quality homes in premier locations across North America,” said Sheryl Palmer, president and CEO of Taylor Morrison. “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…
“Taylor Morrison is excited to partner with long-time investors Oaktree and TPG on such an important and landmark endeavor like Marblehead. Oaktree and TPG’s continued investment in Taylor Morrison showcases their confidence in our long-term vision, and we are delighted to further expand our relationship through this joint venture,” Palmer concluded.
Jason Keller of Oaktree added, “Oaktree is always looking for premier real estate opportunities with first class partners. 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.”
Jamie Sholem of TPG Real Estate said, “This transaction highlights Taylor Morrison’s ability to execute quality investments while leveraging existing relationships. TPG is fortunate to have great partners in Oaktree and Taylor Morrison, and we look forward to the development of this truly unique coastal California site.”
Taylor Morrison is based in Scottsdale, AZ.