Mixed-Use Community to Offer Relief to Underserved Market with Homes Starting in the $800,000s
ARCADIA, Calif. – The Hoffman Company, a leader in the land brokerage industry, has successfully closed the purchase of a retail shopping center in Arcadia from The Olson Company to Lennar Homes, which plans to repurpose the aging retail site into a mixed-use community featuring 80 units, including detached homes, two- and three-story townhomes and live/work lofts. Pricing will be in the high $800,000s and $900,000s for attached units and low millions for single-family detached homes. The property was brokered by Justin Esayian at The Hoffman Company.
“This transaction represents a rare opportunity to achieve early 2020 deliveries in a highly desirable infill location in the supply-constrained San Gabriel Valley, where listing prices have increased 14 percent year over year,” said The Hoffman Company’s senior vice president Justin Esayian, the broker on the sale. “Transactions of this size are extremely rare in this location, and we predict this community will be particularly successful as there is very little new product available to compete with it.”
The Olson Company, one of the largest private infill developers in Southern California, delivered a fully graded property, with an approved tentative tract map, improvement plans and architectural construction drawings for $36.6 million.
“This property is an example of the changing retail environment. The buildings are not well suited for the demands of today’s retailers and the property has been underperforming,” said Aaron Hirschi, senior vice president of land acquisition for Olson Homes. “It is a pleasure working with the City of Arcadia to design a mixed-use project that ‘right sizes’ the retail for today’s market and provides much needed quality new housing.”
Lennar plans to build a gated community with the main entrance at the northwest corner of Las Tunas Drive/Live Oak Avenue off Santa Anita Avenue. The community will offer 12 two-story detached condominiums, 44 three-story attached townhomes, 21 two-story attached townhomes and three three-story live/work attached townhomes. The site plan also includes a retail component to provide a local retail amenity for the community and area residents.
“Like many cities in the San Gabriel Valley, Arcadia is facing a chronically aging housing stock and a severe shortage of new homes, with nearly all recently built homes aimed at ultra-high-end buyers,” continued Esayian. “With Arcadia 80, Lennar will deliver a community of scale affordably priced relative to the rest of the newer housing stock available in this market. We have no doubt it will do very well.”
Residents will have access to an enhanced open space with a shade structure, seating, an open lawn, barbecue counter and fireplace. It is located less than three miles from the Arcadia Metro Gold Line station, which links to downtown Los Angeles and Pasadena, and provides access to some of the best schools in the greater Los Angeles area. Bloomberg Businessweek has named Arcadia as one of the “Best Places to Raise Your Kids.”
According to the National Association of Home Builders’ formula to determine the local impact of single-family housing in typical metro areas, adding 80 homes will generate $23 million in local income, $2.9 million in taxes and other revenue for the City of Arcadia and 315 local jobs.
About The Hoffman Company
The Hoffman Company, a leader in the land brokerage industry, was founded in 1978. Since that time our firm has continued to grow, adapt and perfect land sales drawing from almost 40 years of experience. As we move into our fourth decade in business, our commitment to serving the needs of homebuilders and land developers throughout California and Nevada has become even stronger. When you have an asset as valuable as land, it pays to work with an experienced land brokerage firm. For more information please visit our Web site at www.hoffmanland.com.
About Lennar Corporation
Lennar Corporation, founded in 1954, is one of the nation’s largest builders of quality homes for all generations. The Company builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar’s Financial Services segment provides mortgage financing, title insurance and closing services for both buyers of the Company’s homes and others. Lennar’s Multifamily segment is a nationwide developer of high-quality multifamily rental properties. Previous press releases and further information about the Company may be obtained at the “Investor Relations” section of the Company’s website, www.lennar.com.
About The Olson Company
Established in 1988, The Olson Company and the Olson Homes brand are nationally recognized for creating unique, affordable, in-town, in-transit communities throughout Southern California. Headquartered in Seal Beach, California, The Olson Company has successfully partnered with governmental agencies and private landowners to create innovative housing solutions designed to fulfill the lifestyle needs of today’s buyer. The company works diligently with community and neighborhood groups to build a high level of awareness and broad-range community consensus around its neighborhoods. The Olson Company was awarded the prestigious “Builder of the Year” award by Professional Builder Magazine and the National Association of Home Builders. www.olsonhomes.com
