ALISO VIEJO, Calif., May 4, 2016 /PRNewswire/ -- Four of the most innovative, master-planned communities and their management company are being combined to form FivePoint Holdings, LLC, which is now the largest developer of mixed-use communities in coastal California.
FivePoint will own interests in and manage (1) The San Francisco Shipyard, (2) Candlestick Point in San Francisco, (3) Newhall Ranch in Los Angeles County and (4) Great Park Neighborhoods in Irvine all led by Chairman and Chief Executive Officer, Emile Haddad. All four communities, located in major urban areas, are planned to provide critically needed housing adjacent to job centers while maintaining the important balance between growth and the preservation of California's unique quality of life.
FivePoint is setting an example of successfully creating public-private partnerships to plan and develop highly diverse and robust communities in some of the nation's fastest job growth and most housing-constrained regions. All of the FivePoint communities provide multi-generational housing, amenity-rich parks, green space and a blend of office, retail and commercial properties. Combined, the mixed-use communities will include approximately 40,000 residential homes and 20 million square feet of commercial space.
The four communities also will include approximately 15,000 acres of public parks and accessible open space and 10 new primary and secondary schools. Affordable housing is a key element of each community with a total of approximately 6,000 homes planned.
Development of the four communities will be an economic boon for each market and the state of California. Beacon Economics anticipates that the four developments will generate approximately 288,000 jobs during construction, approximately $21 billion in wages and approximately $54 billion in economic activity for the California economy.
"FivePoint Holdings is a strategic combination of world-class real estate assets that have been in planning and development for more than a decade," Haddad said. "We have the desire, expertise and the singular goal to create vibrant, sustainable communities for 21st-century California. We are excited about what lies ahead."
Lennar Corporation, one of the nation's largest homebuilders, formerly held equity positions in each of the four communities and the management company. Under this strategic combination of communities, Lennar has become the largest investor in FivePoint.
Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "Today's announcement marks the next step in FivePoint's strategic evolution. FivePoint has already proven itself as a leader in the management and development of large master- planned communities. With its tremendous asset base and leading management team, I am confident in FivePoint's ability to maximize the long-term value of these unique assets."
In addition to the communities in which FivePoint will own interests, it will manage other strategic, long-term, master-planned communities owned by Lennar in California, including Treasure Island. FivePoint will continue to be led by the same management team that has been overseeing the development of the various communities.
In addition to Lennar, FivePoint's largest investors include Castlelake, L.P., Anchorage Capital LLC, Emile Haddad, Third Avenue Management LLC, Och-Ziff Capital Management Group and Marathon Asset Management LP.
ABOUT FIVEPOINT HOLDINGS:
Spanning the state from Southern California to the San Francisco Bay Area, FivePoint is now the largest owner and developer of mixed-use, master planned communities in coastal California based on the total number of residential homesites permitted under existing entitled zoning. These four existing communities represent major real estate developments in three of the most dynamic and supply-constrained markets along the California coast—Orange County, Los Angeles County and San Francisco County.
Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the number of homes, parks, schools and commercial space that the four communities will include, and the positive economic effect of the four communities, including the anticipated number of jobs and wages that the communities will generate. These forward-looking statements are subject to risks, uncertainties and assumptions.
Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements, including the risk that the development of the communities will be delayed and the risk that the communities will not be developed as planned. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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SOURCE FivePoint Holdings