Toll Brothers, Shea Homes to develop California project

Two of the nation’s largest residential home builders are entering a joint venture to develop a sprawling Southern California subdivision, according to an article in Bloomberg News.

Toll Brothers, a public company best known for its high-end housing, is buying half of an Orange County development approved for as many as 2,379 single-family homes. Its partner will be Shea Homes, headquartered in Walnut, Calif., a privately held company that will help it develop the 387-acre Shea Baker Ranch in Lake Forest, according to the news report.

The project, about 12 miles from Orange County’s coast, has been approved by the city council. The land transaction, which is currently in escrow, is expected to close in June or July. Model homes should be open by January 2014, with move-ins beginning at the end of the year.  About 80% of the residences will be single-family homes, with the remainder multi-family, Bloomberg reported.