Mar 10, 2015, 4:49am PDT
By: Nathan Donato-Weinstein
Continuing its Bay Area acquisition blitz, Lennar Corp. has picked up its first — but probably not its last — development site in Milpitas during the current economic cycle.
The giant homebuilder just paid $25 million for 1494 and 1600 California Circle, two vacant one-story industrial buildings between the Coyote Creek and Interstate 880, south of Dixon Landing Road. The roughly 10-acre site was approved in 2013 for 84 single-family homes after developer Trumark Homes was successful in getting the land converted from industrial to residential. The price works out to roughly $300,000 per unit.
The deal is just the latest pickup for Lennar, which is gobbling up development sites all over the Bay Area, such as the Foster Square project in Foster City. Its Lennar Multifamily and Lennar Commercial divisions — which develop apartments and office space, respectively — have also been active. By far, though, Lennar’s biggest current undertaking is in Fremont, where it is seeking approvals for a massive residential and commercial development adjacent to the Tesla Motors Inc. plant.
Lennar is slated to release earnings March 19.
The development Lennar just bought in Milpitas, which Trumark was calling Waterstone, is one of the few single-family detached projects in the South Bay. Most residential development outside of Gilroy and Morgan Hill are attached — either townhomes or stacked flats — but single-family is prized by builders because of its ability to command higher prices.