Miami-Based Home Builder May Buy Newport’s Bramalea

One of the nation’s largest home builders is negotiating to buy Bramalea of California Inc., the bankrupt Newport Beach home builder, in a deal that could approach $60 million, real estate sources said.

If completed, the deal would mark the entry of the Miami-based Lennar Corp. into the Southern California residential real estate market. Lennar, which also builds homes in Florida, Texas and Arizona, directs commercial operations in California from its Century City office.

“They have made a serious offer for Bramalea,” said William Lobel, the attorney for Bramalea. “We’re in the middle of negotiations now and it is clear that Lennar is coming to our market. They have decided that now is the time.”

The emergence of the publicly traded Lennar in California could mean increased competition for other public builders here, such as Centex Corp. of Dallas and Kaufman & Broad Corp. of Los Angeles.

With $821 million in revenues from home building last year, Lennar is the seventh-largest home builder in the nation, according to a recent survey.

Lennar and Bramalea officials would not comment on the negotiations.

Bramalea of California filed for bankruptcy in May, after its Canadian parent company collapsed. Bramalea, which had been profitable up to that point, filed for bankruptcy claiming $112 million in assets and $179 million in liabilities.

The company has 12 active housing projects, including four in Orange County, and seven vacant parcels. The Orange County projects are in Mission Viejo, Aliso Viejo and Tustin Ranch.

Bramalea builds homes and condominiums that range from under $200,000 to more than $2 million.