Developer linked to D.R. Horton buys next phase of Harmony (updated)

Forestar Group, the land developer for D.R. Horton, has paid $10.67 million for nearly 500 lots in Osceola County’s Harmony master-planned community, signaling the builder will have a major presence there as the community builds out.

“It’s all of Phase 1, and they have Phase 2 under contract to close later,” said Richard Jerman, principal for Sun Terra Communities.

Phase 1 was split into four subphases, Jones Homes USA bought the first 134 lots in Phase 1A. The Altamonte Springs builder closed on its second takedown on Feb. 12, bringing its total investment in the community to over $7 million.

The remaining pods have a combined total of 487 lots. The plans include a combination of 40-, 50- and 60-foot lots with a mix of front garage and rear alley entry-homes.

Phase 2 is even bigger. Split into two subphases, it has approved Preliminary Subdivision Plans that would bring the total number of homesites in the expansion area to 1,913.

Given the scale of the project, it’s likely Forestar would include other builders, Jerman said.

Sun Terra bought the balance of the 11,000-acre Harmony community in 2017 for $24 million and subsequently sold of large portions to Fusilier Realty Group and Deseret Ranch for a combined $17 million.

Melbourne-based Forte Macaulay Development Consultants, Inc. paid $4 million in 2019 for the 463-lot subdivision known as Harmony Central.

The combined land sales now total over $40 million, and that doesn’t include Phase 2 of Villages of Harmony, entitled for over 1,000 homesites.

“It was a successful venture for us,” Jerman said.

He added that the pending deal with Forestar would leave Sun Terra with a few hundred lots in Harmony Lakes, an active adult community within Harmony, and one 40-acre site on U.S. 192 that’s entitled for commercial or multifamily development.

February has been a busy month for Forestar, which also paid $4.18 million for the 152-lot Bridle Path subdivision in Apopka and $4.8 million for an approved subdivision in Osceola’s East Narcoossee area on Jones Road.

The seller previously told GrowthSpotter that D.R. Horton was under contract for 80 acres south of Jones Road. The transaction on Feb. 18 represented the first takedown. The project abuts the Center Lake Ranch property that was annexed into the City of St. Cloud and approved for 4,000 homes in 2019.

D.R. Horton has been active in the St. Cloud submarket for years. In addition to being the master developer of Kindred, the homebuilder is actively building in multiple new subdivisions, including Westerly on Nova Road and Canopy Walk just east of Narcoossee Road. On Feb. 17, D.R. Horton paid $2.24 million for a 28-lot takedown in its Barrington subdivision.

EDITOR’S NOTE: This article has been updated to include details of recent closings by Forestar Group.

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