Developers Buy 934 Acres in San Clemente
A development partnership has purchased 934 acres in the hills above San Clemente, where it plans to build one of the largest residential projects for the seaside community in years.
Irvine-based John Laing Homes and Institutional Housing Partners in Newport Beach plan to build more than 1,000 homes in the Forster Ranch area east of Interstate 5.
They reportedly paid lender Westinghouse Credit Corp. $6 million for the property. The partnership also plans to spend another $40 million to $60 million grading the property and putting in roads, a park and a school, according to Larry Webb, Laing Homes president. If the group can draft a new development agreement with the city in coming months, construction could begin by the end of 1998.
“I believe this market is going to be improving over the next three or four years,” Webb said. “This is a great opportunity to get a large number of lots in a great city.”
Laing plans to open a new office in San Clemente to supervise the project.
Forster Ranch is one of several large communities that developers are planning in San Clemente now that the San Joaquin Hills Transportation Corridor has opened. Also in the pipeline are 3,500-acre Talega, a golf course community adjacent to Forster Ranch; Marblehead, a 500-home coastal development; and Plaza Pacifica, a 200-home project.
“It looks like we have hit that point in the market where people are moving forward again,” said Michael W. Parness, San Clemente city manager. “We are just surprised that it’s happening so quickly.”
Forster Ranch development was started in the early 1980s by Estrella Properties Ltd., which sold the parcel in 1989 after clashing with city officials over a slow-growth initiative. Dallas-based developer and builder Centex Development Corp. bought the site with a $50-million loan from Westinghouse and built 580 homes, less than a third of the 2,000 homes originally planned for the site.
However, Westinghouse took possession when high debt service, expensive improvements and a city lawsuit seeking back payment for sewer assessments forced Centex out of the project last year.
