Developers Buy Big O.C. Parcel for Community

By MELINDA FULMER

May 31, 1997 12 AM PT

SPECIAL TO THE TIMES

In one of the largest Southern California residential land deals in years, a group of developers on Friday purchased 3,470 acres of land in San Clemente, where it hopes to build Talega, a planned community of 5,000 homes, office buildings, retail centers and two golf courses.

The deal underscores the growing confidence in the housing industry and the increasing developer interest in south Orange County, especially since the San Joaquin Hills toll road opened last year.

“We were attracted by the recovering Southern California market and the economy in general,” said Sam Robinson, a partner at Connecticut-based Starwood Capital Group, one of the developers.

Talega Associates--made up of Starwood and home builders Standard Pacific Corp. of Newport Beach and Catellus Residential Group of Irvine--paid $31.1 million for the project. The previous owner, Arvida/JMB Partners II, purchased the parcel in 1989 at the height of the county’s real estate boom, paying $75 million. In 1991, rising debts and a sour real estate market forced the partnership to scrap the project after half of the site work was complete.

Ken Agid, an Irvine real estate consultant, said Talega is one of the few large pieces of land still available in Orange County, at a time when population and employment growth are increasing, creating a bigger demand for housing.

“There’s not likely to be a lot of competition [when Talega opens] a couple of years down the road,” said Tim Unger, Catellus’ executive vice president of community development.

The developers plan to begin grading the land and putting in new roads later this year for community openings in 1999. Standard Pacific and Catellus will build some of the homes, and the rest of the land will be sold to other builders. Home prices are expected to range from $150,000 to $400,000.

The Talega land was originally part of the huge ranch controlled by the O’Neill/Moiso family. It was sold in 1985 to a partnership of Southmark Corp. of Texas and planner William Phillips, which later sold it to Arvida/JMB in 1989.

Talega is just one of several communities that will begin construction over the next few years in San Clemente. City officials say the flurry of development will add millions of dollars to its cash-strapped coffers. But it also is likely to spark community debate about the changing nature of the once-sleepy town.

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Building Boom

The recent purchase of Talega, a 3,470-acre ranch in San Clemente, makes four major home developments in the works in San Clemente. Details on the projects:

Talega Valley

Acres: 3,470

Homes: Up to 4,965

Plaza Pacifica

Acres: 155

Homes: About 200

Marblehead Coastal

Acres: 250

Homes: About 500

Forster Ranch

Acres: 934

Homes: More than 1,000