The Irvine Pacific QUIT business??? Sell OH4 to other builders?

Lanelgn

Lanelgn

Member
I recently heard some information regarding The Irvine Company's future plans, specifically concerning its residential development branch, Irvine Pacific.

According to a friend of mine, The Irvine Company intends to shift its focus primarily toward city planning in the future. As a result, my friend mentioned that the company plans to sell its OH 4 properties to other builders rather than developing them through Irvine Pacific.

I would greatly appreciate it if you could confirm whether this information is true or false.

What does this imply?
 
Information is 100% true. Supposedly, they will stop within 4 months.

Not just OH4, but even current projects in Portola Springs like Cielo, Azul, Fiore (which are ongoing) and Olivewood and Arbor, which was about to open. The projects that are about to finish will finish up. These include Fresco and Como at OH, Hillside and Bluffs at PS. Probably Highland at PS even though there are quite a few homes left to be built.

According to sales at Cielo, IP will stop building in a couple of phases. I'm thinking that they'll build out Sunnyslope since it would be strange to have a few empty lots left on the street. That would finish up phase 6. They were about to release phase 5A this week or so.

We had our eyes on a Plan 1 in phase 7 on Orbit, but I guess we won't get it now. My wife is really sad.
 
Overall, smart business move by TIC. I'm guessing they've already got a couple of the main builders lined up to take over OH4 (Toll Brothers? Shea? KB?). Take the money now for the land and shift the risk burden onto the builders. On top of that, I believe TIC gets a royalty for every sale and has a lot of say in the pricing and aesthetics of the homes that eventually get sold.

Some have mentioned on there that TIC has seen an uptick in cancellations this year at their developments. While OH4 is going to be super popular, who knows what the economy will bring over the next 2-3 years.
 
Slevinkelevra said:
I guess that explains why the Information link page for Olivewood and Arbor have been removed.
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Yeah, I was going to sign up for the priority list for Olivewood and then everything about Olivewood and Arbor were removed from IP's website. Also, a RE Youtuber posted some info about Olivewood, but took it down right when I was going to post the link to her Youtube. We were wondering why.
 
They probably are not making big enough profits in the homebuilding business anymore like they used to for them to change their business model suddenly and focus their business on commercial real estate and multi-family rental units now.
 
Yoda said:
They probably are not making big enough profits in the homebuilding business anymore like they used to for them to change their business model suddenly and focus their business on commercial real estate and multi-family rental units now.
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It's likely that they decided to change their business model late last year when the Cielo and Azul homes weren't selling. Demands started picking up quite a bit around Feb/March this year, so they must have made the decision before then.
 
potsticker said:
Take the money now for the land and shift the risk burden onto the builders.

Some have mentioned on there that TIC has seen an uptick in cancellations this year at their developments.
Click to expand...

Yup, they know we're at a cyclical top.

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