Builder Plans 158 Homes in Dana Point

Kaufman & Broad, California’s largest home builder, has agreed to buy 158 ocean-view housing lots in Orange County from Monarch Partnership Inc. to build single-family homes in Monarch Hills priced from $260,000 to $370,000.

Under the deal, which is expected to close escrow in two weeks, Kaufman & Broad will buy the Dana Point lots for an undisclosed amount from the San Diego developer, said Roland Osgood, president of Kaufman & Broad’s Orange County division.

Steve Johnson, a partner with the Meyers Group, a real estate consulting firm in Newport Beach, estimated that each of the lots--located near Niguel Road and Camino Del Avion--would sell for about $100,000, putting the purchase price at about $16 million.

The homes will be built in parts of what was known as the Marquesa and Corniche developments, where San Diego builder R. B. McComic Inc. erected about 60 homes in the late 1980s, but was forced by financial pressures to stop building.

“The reason we weren’t able to finish is, our construction lender was taken over by the Resolution Trust Corp.,” said R.B. McComic, chairman of Monarch Partnership Inc., which has developed more than 1,000 homes in San Diego. He said he spoke with 15 potential buyers and had offers from nine. He said K&B; offered the highest bid.

Kaufman & Broad will complete the housing community, which will be renamed “California Cortina.”

Known for its affordable entry-level housing, Kaufman & Broad will make these homes part of its more upscale Orange County housing, Osgood said. “If we find the right property in Orange County, we will do high-end,” he said. “This is a very attractive piece of property, with ocean views. It’s a gated community.”

On April 6, the Dana Point Planning Commission is scheduled to vote on whether to approve Kaufman & Broad’s application to amend the original planning design for the housing units in Monarch Hills.

“They want to build units a little bit different in design, not higher density,” said Greg Pfost, assistant planner for the city of Dana Point, who said some of the current residents have expressed concern about completion of the project by Kaufman & Broad. Residents are concerned about the smaller size of the proposed homes, the quality of materials to be used and lower property value.

Still, David Jacobson, senior vice president with Sares-Regis Group of Irvine, which has built a a 325-unit condominium project in Monarch Hills, hailed the arrival of Kaufman & Broad. Of the estimated 150 units currently for sale, 102 have been purchased, he said.

“This is outstanding news,” Jacobson said. “Kaufman & Broad is known for their marketing techniques. They will bring in a lot of people.”

In a separate land purchase, Kaufman & Broad recently closed escrow on the purchase of 18 acres for the construction of 144 duplex homes in a neighborhood called California Tesoro in Rancho Santa Margarita near the golf course. These are the first duplexes to be built in that master-planned community, according to Diane Gaynor, spokeswoman for the planned community. The land purchase price was not disclosed.

‘These homes will be close to the town center and will be in a very attractive price range for younger families,” Osgood said. “In my opinion this works better than clustered housing, because there is more privacy. We think this will be very successful.”