UPDATED: July 18, 2017 10:30 AM — K. Hovnanian Homes added more land to its growing Central Florida portfolio last Friday.
The New Jersey-based homebuilder paid $4.9 million for Phase 2 of Magnolia at Westside, a 246-home subdivision in Four Corners near the intersection of Westside Boulevard and Florence Villa Grove Road.
Division President Kyle Upper said on Monday that site development is already underway, and KHov expects to open its model center there by May 1.
"What attracted us to the project was to be able to deliver relatively affordable single-family homes in a market that's close to the attractions and is in an exemplary school district," Upper told GrowthSpotter.
The neighborhood is zoned for the Westside K-8 school and Celebration High School.
"Typically, homes in the Celebration High School zone are much more expensive," Upper said. "We're going to be offering homes for less than $300,000. We've seen demand across the board in this price range."
Upper said KHov would be offering a similar lineup to its Hilltop at Apopka community. Magnolia will have 10 floorplan options with several models priced below the $274,000 FHA loan limit.
JTD Land Co. paid $5.55 million a year ago for the 72-acre tract known as "Parcel H" of the former Westside DRI. The land banker won approval for the residential entitlements and site plan before selling Phase 1 to KB Homes this spring.
KB Homes paid $3.2 million for the first phase, which included entitlements for 122 lots. Land Development Director Jim Reinart said KB will be responsible for building the amenity center, which will include a community pool, cabana and playground.
KB had an option to buy the second phase, but opted out, Reinart said Monday. The homebuilder is already marketing the community and is offering seven floorplans.
Upper said both phases will be developed concurrently. "We feel like we're compatible with KB," he said.
Magnolia at Westside is adjacent to a 72-acre parcel that homebuilder D.R. Horton has under contract. That parcel, which is at the southeast corner of the Westside - Florence Villa Grove Road intersection, is slated for 192 detached single-family homes on 50-foot lots and 158 townhomes.
It was KHov's second major Osceola County acquisition this summer. GrowthSpotter reported last week that KHov had paid $3.86 million for a second takedown in St. Cloud's Preserve at Turtle Creek. That purchase comprised 68 finished lots.
The builder is also a month away from the grand opening of its Four Seasons Orlando active adult community, located at Mystic Dunes. The gated community will feature up to 500 fee simple, single family homes. Residents would have access to the Mystic Dunes Resort & Golf Club, but they'll also have their own 12,000-square-foot clubhouse and resort-pool.
"The interest list is extremely long for Four Seasons," Upper said. "Our sales center opens Aug. 19. We're going to be offering 16 quick move-in homes that will be ready by Oct.1."
KHov has three additional projects in development now that are on the same timetable as Magnolia at Westside. The first is a 28-home community called Lake Florence Preserve in Winter Park. That project includes five lakefront lots with options for docks, Upper said.
The third project is an 88-unit townhouse development underway near Waterford Lakes called Spring Isle. The fourth is also a townhouse project in the Horizons West area. All are slated for a spring 2018 opening.