The land set to hold the high-end Marblehead coastal housing development in San Clemente looks to be back in play, now that the homebuilder initially tapped to buy the 195.5-acre site has apparently gotten cold feet over the price.
Scottsdale, Ariz.-based Taylor Morrison Inc. last month was cited by national and trade publications as the winning bidder for the long-delayed 308-home site, with an expected purchase price in the $215 million range for the site.
Real estate sources said the builder—which said last month that it expected to spend more than $1 billion on land acquisitions and development across the U.S. this year—has since gone back to the property’s current owner, Lehman Brothers Holdings Inc., in an attempt to renegotiate the sale price.
Sources told the Business Journal that Taylor Morrison’s latest valuation of the land was a shade under $200 million.
It’s not known whether New York-based Lehman remains in discussion with Taylor Morrison on a deal.
Neither the builder, Lehman, nor brokers with Irvine-based Land Advisors Organization, which has the listing for the sale, have commented about the status of the proposed deal.
Other industry sources said Lehman’s representatives have reached out to other builders that had initially bid on Marblehead and received new bids from some of those groups.
A selection by Lehman could come in a week or two, sources said.
Others reported to be in the final round in the initial bidding for Marblehead last month were said to be Horsham, Pa.-based Toll Brothers Inc., New Home Co. in Aliso Viejo, and a venture between Irvine-based Standard Pacific Corp. and Brookfield Residential Properties Inc. in Canada.
Executives with New Home Co. last week said they felt the property would be a good fit for their company but declined to comment on whether they had made a new bid.
“We would love the property,” said Larry Webb, New Home Co.’s chief executive. “It’s one of the foremost pieces of ground in Orange County.”
Executives with Irvine-based Standard Pacific—the largest builder based in OC—previously expressed interest in the site, calling it “a very high priority” among potential acquisitions.
Marblehead is considered to be one of the last major coastal sites in Southern California entitled for residential development.
Lehman took control of the San Clemente site and several other residential sites in California in 2012 after a protracted legal struggle with its one-time development partner, SunCal Cos. in Irvine.
Lehman financed more than $2 billion of land buys—including Marblehead—for the developer prior to the last recession. SunCal paid about $200 million for the San Clemente land in 2005 and put millions more into the property in early-stage development work.
Homes at Marblehead are expected to be priced between about $630,000 and more than $3.3 million, officials representing Lehman told San Clemente city officials last month.
