Person to Watch: SCOTT STOWELL
Signs of an improving housing market can be seen in the results of Standard Pacific Corp. during its first year under new Chief Executive Scott Stowell.
Stowell took over the reins of the largest homebuilder based in Orange County at the start of the year, looking to build on a few years of results that had seen Standard Pacific occasionally flirt with profitability while getting its balance sheet in order.
So far, so good: The company has earned about $44.5 million in profits through the first nine months of 2012, compared to a $31.8 million loss during the same period of 2011.
Revenue is up about 39% for the first nine months of the year, and the builder has sold about a third more homes during that time than it did a year ago.
The company’s stock has followed the upward trend. Standard Pacific’s shares have more than doubled over the past year; the company now counts a market value of about $2.4 billion, factoring in preferred shares.
In addition to Standard Pacific’s role as a prominent builder in the region, we chose Stowell as a person to watch based on the likelihood that his company could be a prominent buyer of land in O.C. this year.
So far, that hasn’t been the case, outside of a project planned at the Tustin Legacy development.
—Mark Mueller
Company to Watch: WILLIAM LYON HOMES
It has been a year of restructuring and deal-making for William Lyon Homes, which along with its predecessors has sold some 100,000 homes across the country since 1956.
A prepackaged bankruptcy plan filed in 2011 by the iconic Newport Beach builder was confirmed early this year, which saw the company reduce its debt load by about $180 million while getting an additional $85 million of capital.
The company has seen changes in its ownership following the bankruptcy, most notably bringing on hedge funds as major investors. In October it got $30 million from New York-based Paulson & Co. Inc., its most-recently-announced hedge fund investment.
Other notable deals struck by the builder during the year include the sale of a 27-acre site in Northern California for a reported $90 million, as well as a purchase of 165 acres in California, Arizona and Nevada for $21.5 million.
The company has a few housing projects in the works in OC, including two sites in Irvine. It is also looking to sell its longtime Newport Beach headquarters and plans to relocate to a smaller location elsewhere in the area.
—Mark Mueller
5 Big Real Estate Stories
• A new Newport Center office tower on tap for 2013 highlights Newport Beach-based Irvine Company’s development push across California.
• Apartment construction remains in high gear across OC, as developers continue to pay top dollar for land.
• Negotiations continue over Great Park funding and housing plans in the aftermath of the state’s elimination of local redevelopment agencies.
• New-home sales in Irvine remain strong, as more South County projects move ahead and plans for developments circulate.
• The sale of The Michelson office tower sets a record at $277 million, as the OC office market shows signs of life, particularly for higher- end properties.
