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Lennar Wants 5,800 More El Toro Homes

Lennar Corp. proposed Tuesday to boost the number of homes it plans to build at the former El Toro Marine base in Irvine.

The changes would add more than 5,800 homes to the Heritage Fields site, while cutting back retail and industrial space by 30%.

The Miami-based company’s plans for the site now include a total of 9,500 homes, while commercial and industrial space would be reduced to 3.7 million square feet.

The company’s initial plans were for 3,625 homes and 5.3 million square feet of commercial and industrial space.

Many of the newly proposed homes would be on land closest to the Santa Ana (I-5) Freeway, focused around a transit station. The company could build some high-rise condominium towers.

Emile Haddad, chief investment officer for Lennar, said the changes would bring in a total of $1.5 billion in revenue earmarked for the base’s Great Park. That’s up from $779 million under the prior plan.

The city of Irvine also would get another 402 acres of land, bringing the city-owned portion of the 3,700-acre site to 1,749 acres. Lennar also would forward the city $200 million in loans to jump-start development of the Great Park.

Traffic volume is expected to remain the same, largely due to the decreased retail presence at Heritage Fields, Haddad said.

“We see this as an opportunity to create more public benefits, and to increase the pie for everyone,” Haddad said.

The new plan isn’t a done deal. Lennar is set to present the proposal to the City Council Tuesday night. The company’s hope is to work with the city to get feedback, and have approvals for the changes in September.

The Aliso Viejo-based office of Lennar and its investment partners, operating under the Heritage Fields LLC name, acquired 3,700 acres of land at the former El Toro Marine base last February for $650 million.

The company is set to pay an extra $400 million to Irvine in development fees and for roads, sewer lines and other basics.

Despite the changes, plans are still for Lennar to begin selling homes at Heritage Fields by early 2008, Haddad said.

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Mark Mueller
Mark Mueller
Mark is the former Editor-in-Chief and current Community Editor of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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