Irvine’s California Coastal Communities Inc., one of the county’s smaller homebuilders, has ridden the housing cycle with the best of them.
The builder reported annual revenue growth of 254% in the three-year period ended June 30, improving from $22 million in 2002 to $77 million in the past 12 months.
The company ranked No. 8 on this year’s Business Journal list of fastest-growing companies. It took the No. 45 spot on last year’s list.
Profit growth for the builder of high-end homes has been tamer. As of June, the company’s 12-month net income was $9 million, up 18% from $7.6 million three years earlier.
The company’s big advance in the past year: California Coastal is closer than ever to building homes on a mesa overlooking the Bolsa Chica wetlands in Huntington Beach.
Earlier this month the county’s planning commission approved modifications to the company’s site plan for 349 homes on the Upper Bench of the Bolsa Chica mesa.
The move followed conditional approval in April by the California Coastal Commission, with a list of 27 conditions.
The builder said it’s working on the other conditions so it can complete the sale of the 103-acre Lower Bench of the Bolsa Chica Mesa to the State of California’s Wildlife Conservation Board before a Dec. 31 deadline.
In August 2004, the Conservation Board approved the agreement to buy the land for $65 million. The money would come from bond proceeds authorized by Proposition 50.
In summer, the company’s stockholders approved the sale.
The builder is seeking a Coastal Development Permit from the Coastal Commission. If it gets the permit and completes the land sale, the struggle over development of Bolsa Chica finally will be resolved.
About 96% of the coastal property would become permanent open space if the deal is finalized.
The 30-year fight over the wetlands pushed the company into bankruptcy more than a decade ago. It emerged from bankruptcy in 1997.
Work on the development could start early next year and be finished by 2009. Homes are expected to sell for nearly $1 million and up.
California Coastal’s principal units are Signal Landmark and Hearthside Homes Inc.
Signal Landmark owns 208 acres in Huntington Beach. Hearthside Homes has built more than 1,800 homes in Southern California during the past 10 years.
California Coastal reported an operating profit of $900,000 for the three months ended June 30, down 10% from the second quarter of last year.
“Our homebuilding efforts during the second quarter were focused on the acquisition of 249 lots in the Inland Empire and Lancaster, California, and construction activities at our five ongoing projects in Southern California,” said Chief Executive Raymond Pacini, in a statement.
He said heavy rains delayed the completion of some homes early this year.
California Coastal also is working on a project in Oxnard. It expects to have entitlement to build 900 homes at the development next year.
The company said it would probably build most of the single-family homes at the project, which also is set to have other types of units. The Oxnard project is expected to be finished in the next five years.
The average price of homes sold by California Coastal increased 75% in the second quarter to $775,000, versus a year ago. The jump reflects larger homes at the Riverside project,Jasper Ranch,as well as a rise in land value.
At a recent check of $35, shares of California Coastal are nearly double their 52-week low. The company has a market value of $355 million.
THE NUMBERS
Employees: 52
Market value: $355 million
3-year sales growth: 254%
Annual sales through June 30: $76.8 million
Annual net income: $9 million
Company: homebuilder, developer
