Land sales at the Great Park Neighborhoods continues to be the main source of business for Five Point Holdings, while it preps for sales in other coastal residential projects it oversees across the state.
The Irvine-based master developer, better known as FivePoint (NYSE: FPH), reported in late October that it sold 326 home sites at the locally-based Great Park Neighborhoods during the third quarter, for $257.7 million.
The deals, made with four homebuilders, were for land totaling 26.6 acres in the northern part of the city, which remains one of busiest, and priciest, areas in the state for new home sales.
The collection of transactions worked out to pricing of about $790,000 per home lot, and $9.7 million an acre.
FivePoint Chief Executive Dan Hedigan, speaking during the company’s Oct. 29 quarterly earnings call with analysts, said the individual sales ranged in price from $8.5 million an acre to $11 million an acre.
Another two residential land sales, for 113 home sales, closed in Irvine after the quarter ended, Hedigan said. Pricing for those transactions wasn’t disclosed.
187 Q3 Home Sales
“Our third quarter performance was underpinned by resilient home buyer and builder demand at the Great Park, which remains solid despite continuing pressure from higher interest rates and affordability headwinds,” Hedigan told analysts.
“While buyers remain somewhat cautious, the underlying imbalance between housing supply and demand in this core California market continues to support our land sale activity.”
Builders sold 187 homes at the Great Park Neighborhoods during the last quarter, an increase from the 112 homes sold in the second quarter.
“We currently have six actively selling programs with several expected to sell out by early 2026,” Hedigan said.
“Ten additional new programs are anticipated to start sales either later this year or early 2026,” he said.
Sales are now taking place at Luna Park, the 8th community to open at the Great Park Neighborhoods since its opening in 2013. Homes there start around $1.2 million, with larger homes selling for over $2.5 million.
Over 7,000 homes, and 9,000 home sites, have sold at the Irvine development since its opening; the Great Park Neighborhoods is currently entitled to hold 10,500 homes, though that figure could increase if the city looks to boost housing in the city (see story, page 1).
Back Burner
While Irvine land and home sales remain active, FivePoint’s other projects saw limited progress in the third quarter.
FivePoint didn’t close any land sales during the quarter at its other active master-planned development, Valencia in Los Angeles County, and has yet to begin sales at its two developments in San Francisco.
Builders in Valencia reported 50 home sales in the last quarter. FivePoint’s last land sale at that project was about a year ago, and Hedigan said they’re waiting to see improvements in that market before selling more land to builders.
FivePoint “decided based on the current pace in the market that we should probably wait on those because we think we’ll get better pricing by waiting and there’s enough inventory in the market to keep the master plan moving forward.”
For the company as a whole, looking ahead to the rest of 2025 and into 2026, “we remain cautiously optimistic,” Hedigan said.
“We expect improvement in buyer confidence if mortgage rates ease and affordability begins to loosen. Given the structural undersupply in our markets, we believe the long-term fundamentals remain in our favor.”
