William Lyon Homes isn’t the only Newport Beach homebuilder generating interest from outside investors.
Trumark Homes, the locally based homebuilding unit of Danville-based real estate firm Trumark Cos., last month said Daiwa House USA would take a 60% stake in the company, which sold 87 homes in Orange County last year.
While William Lyon Homes will soon become absorbed into Scottsdale, Ariz.-based Taylor Morrison Home Corp. following its nearly $800 million sale, Trumark will continue to operate under its own brand.
Expect to see a larger and more diversified presence for Trumark going forward, as new ownership fuels its investment in mixed-use developments.
The new investment from Daiwa, an affiliate of Japan-based Daiwa House Industry Co., will “allow us to accelerate our growth within local operating areas,” said Trumark co-founder Gregg Nelson, who will retain the remaining interest in the company along with fellow co-founder Michael Maples.
“As a private company, we have been funding deals with outside equity sources, which can be a tedious process,” Nelson told the Business Journal.
“This new equity will allow us to fund deals internally with more resources available.”
Company officials said they plan to maintain, and add, to its pool of nearly 100 employees, about half of which are based in OC.
The company is looking to expand throughout the west coast, scouting deals in Nevada, Colorado and the Pacific Northwest.
“We plan to launch two new divisions, either from scratch or from acquisitions, within the next 18 months,” Nelson said.
Millennial Target
As for Orange County, “there’s always an opportunity for infill housing,” said Maples, whose company ranks No. 17 on this week’s list of top homebuilders in OC (see list, page 26).
He pointed to strong demand in Anaheim, specifically from younger buyers, for the company’s 153-home Lewis+Mason community in the Platinum Triangle.
It’s also active in Brea, at the Central Park Village 15-acre infill development.
“We’ve all seen an uptick in the market from this time last year,” Maples said. “It’s a good healthy market again, and that will be boosted as millennial buyers come into the homebuying stage.”
Mixed-Use Efforts
Daiwa House, Japan’s largest homebuilder, already has a retail presence in Orange County.
It has worked with prominent area landlord Lincoln Property Co. through a joint venture that began in 2014 to expand the company’s North American operations, and most recently bought the Trade food hall in Irvine from Lincoln Property for $31 million.
“Our firm recognizes California as an important market as a part of our North American growth strategy,” said Nobuya Ichiki, president at Daiwa House USA. “Development in this state can be challenging and we look forward to working with Trumark and leveraging its track record and unique ability to navigate [its] complexities.”
The unified company will target commercial and mixed-use deals across the country.
It also plans to unify residential efforts with that of the recently relaunched Trumark Commercial, which is also based out of the company’s Newport Beach office.
“Daiwa does a lot of commercial in Japan, and the alignment of our companies will allow us to rebuild our commercial operations, and create new mixed-use environments in urban communities,” Nelson said.
