Lennar Corp. and its partners will take possession of the former El Toro Marine base Tuesday afternoon in a major step toward its redevelopment as homes, offices, and parks.
The Miami-based homebuilder and LNR Property Corp. are closing escrow on 3,724 acres of the former base. The companies partnered with Rockpoint Group LLC, Blackacre Institutional Capital Management, LLC and MSD Capital LP in a joint venture under the name Heritage Fields LLC.
“Today marks a major milestone in the conversion of this historic property to reflect the vision of the community,” said Emile Haddad, president of Lennar’s California region, in a statement. “We are proud to shepherd this vision forward.”
Irvine is set to mark the escrow close during a City Council meeting today at City Hall. At that time, the Council will recognize the official name change of the El Toro Marine
Corps Air Station to Heritage Fields.
Lennar and partners will present a $33.3 million check to the city,the first installment of $200 million in development fees, payable during the next two years. The developers are also set to pay another $200 million in property assessments.
On Feb. 17, the joint venture placed the final, winning bid of $650 million for all four parcels of the base. The Navy plans to use the money for environmental cleanup efforts at the base and at other bases.
The city is promoting the redevelopment of the base as part of its Orange County Great Park vision which is actually a series of parks and various complementary public uses for the surrounding communities. In all, public uses are said to account for 1,375 acres of the base.
*Mathew Padilla of the Orange County Business Journal contributed to this report.