Final Lehman Brothers Land Assets Sold, Portfolio Liquidation Exceeds $700,000,000

Irvine, CA – Land Advisors Organization, California Division (“LAO-CA”), a nationwide advisory firm focused on the acquisition and disposition of land and land-related assets, is pleased to announce the successful completion of the sale of Lehman Brothers Holdings Inc.’s (“LEHMQ”) residential land portfolio for its western region, for a total consideration exceeding $700,000,000.

After Lehman Brothers declared the largest US corporate bankruptcy on September 15, 2008, LEHMQ’s Chapter 11 trustee overseeing the real estate projects hired LAO-CA in 2009 to liquidate three master planned communities in Southern California. Terry Ruckle, Principal at LAO-CA, has a long standing professional relationship with the LEHMQ team. That relationship, coupled with LAO-CA’s breadth and depth of land market knowledge proved key for the trustee.

Over the course of the next eight years, Land Advisors sold 19 assets in the portfolio, which represented approximately 37,000 total residential units over 20,000 acres.

“We are proud of the relationship we built with Lehman over the years. Our knowledge, expertise, and transparency were critical to keeping this relationship through the different structural and leadership changes Lehman has been facing since 2008,” said Ruckle. “Because of a finely-tuned process and our knowledge of the west coast market, we were able to dispose of these complicated transactions at the most opportune time to maximize the value for our client.”

The LEHMQ portfolio included several of California’s most impressive and unique residential developments.

LAO-CA negotiated Marblehead Development Partners, LLC’s, a joint venture with Taylor Morrison Home Corporation (“Taylor Morrison”, NYSE: TMHC) and its two largest shareholders, funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and TPG, purchase of Marblehead in April 2014.  Marblehead, now known as Sea Summit at Marblehead, consists of 195.5 coastal acres in San Clemente, and is one of Southern California’s last new communities overlooking the Pacific Ocean. This rare development opportunity included 308 fully-entitled finished lots in Orange County, with direct access to the beach, I-5 freeway and retail centers.

LAO-CA also facilitated the sale of Oak Knoll in May 2014 to SunCal. Oak Knoll is a 170-acre master planned community located in Northern California’s central East Bay area, Oakland.

Pacifica San Juan, a 318-acre coastal enclave located in San Juan Capistrano, sold to Pacific Point Development Partners LLC, a venture between DMB Pacific Ventures LLC, Taylor Morrison, and funds managed by Oaktree, in May 2015.

LAO-CA closed on the last asset within the LEHMQ’s western region residential land assets portfolio, which is located in Beaumont, CA, in December 2016.

“We are excited to have executed the sale of Lehman’s west coast land portfolio. This is another great example of our ability to analyze complex land and development opportunities, identify qualified investors and developers, and present a compelling story to maximize economic value for our clients” said David Kidder, President at LAO-CA.

About Land Advisors:

Land Advisors Organization is a nationwide advisory firm focused on the acquisition and disposition of land and land-related assets. With deep market expertise and a nationwide network, Land Advisors combines a unique perspective on the market with the highest standards of performance to help clients identify and capitalize on valuable opportunities. The diversified LAO-CA platform includes Landmark Capital Advisors, disciplined in sourcing real estate debt and equity, and Market Insite, specialized in consulting and research products for new homes and residential land.


Media Contact:
Ingrid Vallon
Operations Manager