Long-Delayed Talega Deal Moves Forward

The developer angling to purchase Talega, the planned 3,500-acre hillside community in San Clemente, has lined up a local partner to help close the long-delayed deal.

Greenwich, Conn.-based Starwood Development, which put the property in escrow last year, has tentatively chosen Newport Beach-based Standard Pacific Corp. as both a financial and development partner for the 4,965-home community, according to Sam Robinson, a Starwood partner. Sources say the project, which has a hefty amount of bond debt from a water district and requires major public improvements, was more of a financial strain than Starwood first thought.

Robinson said Starwood is still working out Standard Pacific’s role in the huge undertaking, including whether the builder will put up most of the homes or concentrate on land development and planning. The group is expected to complete the $33-million land purchase from Arvida/JMB Partners II at the end of this month.

Starwood already has begun interviewing golf course construction firms to build the first of two 18-hole golf courses there. However, construction of the first phase of the large project could be more than a year away, much later than originally expected, Robinson said.

Industry analysts say the deal would be quite a coup for Standard Pacific, providing the company with a large supply of available land to build on just as Orange County land is becoming increasingly scarce. Standard Pacific also has an exclusive deal to build on Unocal Corp.’s former oil property in Fullerton.

Melinda Fulmer covers real estate for The Times. She can be reached at (714) 966-7832 and at melinda.fulmer@latimes.com