Lennar Corp. and its partners took possession of the former El Toro Marine base Tuesday afternoon in a major step toward its redevelopment as homes, offices and a series of parks.
The Aliso Viejo office of the Miami-based homebuilder and LNR Property Corp., also of Miami, closed escrow on 3,724 acres of the former base.
They have several money partners in the deal, including Rockpoint Group LLC, Blackacre Institutional Capital Management LLC and MSD Capital LP.
The ownership transfer is another nail in the coffin of the El Toro airport debate.
“Today marks a major milestone in the conversion of this historic property to reflect the vision of the community,” said Emile Haddad, president of Lennar’s California region, in a statement. “We are proud to shepherd this vision forward.”
Irvine marked the escrow close during a City Council meeting at City Hall.
Lennar and partners presented a $33.3 million check to the city,the first installment of $200 million in development fees, payable during the next two years. In addition, the developers are set to pay another $200 million in property assessments.
The homebuilder and its partners, under the name Heritage Fields LLC, won the online bidding in February for all four parcels of the base for a combined total of $650 million. The Navy plans to use the money for clean up at the base and at other bases.
The city is promoting the redevelopment of the base’s core as Orange County Great Park, actually a series of parks and other public uses. In all, public uses should account for 1,375 acres of the base.
