A year after expanding its brand into Florida and months after acquiring a local home building company for nearly $200 million, California-based Landsea Homes is looking to add a 149-lot subdivision in Sanford.
The subdivision, to be named Kentucky Square, would go on an assemblage nestled between E Lake Mary Boulevard and Eaglewoods Trail, roughly three miles southeast of the Orlando-Sanford Airport.
The parcels were acquired by Orlando-based Hanover Family Builders in 2021 for $12.9 million, records show. But when the company was bought in January for $179.3 million by Landsea Homes, all of the land moved to its new owners.
It’s surrounded on three sides by large swaths of undeveloped land with subdivisions and the Galileo School for Gifted Learning to the east.
“It’s a good commuter area for people,” Ben Snyder, the vice president of land acquisition and development for Hanover Capital Partners, the parent company of what was formerly Hanover Family Builders, told GrowthSpotter. “And it’s a proven sub-market. It’s sold well for years and years.”
The 149 single-family homes within Kentucky Square would range from 1,700 square feet to 3,300 square feet, with 55-foot lots and 7½ foot sideyard setbacks, Snyder said. The six-parcel assemblage also includes two commercial parcels on Lake Mary Drive that would be built out in the future, he added.
The planned development has already received approval from the city of Sanford and is awaiting permit approval from the St. John’s River Water Management District.
Winter Park-based Appian Engineering is handling civil engineering for the project. Snyder said he anticipates construction to start within the next year.
Since its formation in 2013, publicly-traded Landsea Homes has primarily served the California market. But in 2021, the homebuilder set its sights on two home-building home spots: Florida and Texas.
Those states accounted for about 30% of all single-family home building permits issued in the U.S. in 2021, according to a recent report by the National Association of Home Builders. Of the 1.1 million single-family permits issued to builders last year, 179,620 were issued in Texas, followed by Florida at 148,735. North Carolina came in a distant third with 68,636.
Landsea’s first entry into the Florida market came in May 2021 when it paid $54.6 million to acquire Vintage Estates Homes, which has communities in Orlando, Palm Bay, and Melbourne, Florida.
That transaction enabled Landsea Homes to close on more than 300 homesites in Florida through the remainder of 2021.
But the company’s expansion into the Sunshine State wasn’t over. Enter the blockbuster deal with Hanover Family Builders.
John Ho, Chief Executive Officer of Landsea Homes, touted the Orlando-based home builder in a news release following the purchase.
“This transaction vaults Landsea Homes into one of the leading positions in the Orlando area, a very attractive homebuilding market, and reaffirms our strategy of quickly becoming one of the top homebuilders in the markets we serve,” he said. “Additionally, Hanover’s focus on the more affordable segments of the market aligns strongly with our broader product positioning goals.”
In 2021, Hanover —led by William Orosz and his three sons — closed 632 homes at an average selling price of $328,323 and ended the year with more than 4,100 lots under control, 469 homes in backlog worth more than $200 million and 18 active communities, according to the Landsea news release.
Snyder told GrowthSpotter that having Landsea attached to their home building product is a boost to Hanover Capital Partners.
“It means a larger platform and more capital for the company to do more deals and larger deals,” he said. “I think it’s a good relationship. For Hanover, we are always looking for honest and quality partners and Landsea certainly met that criteria.”
In March, Hanover, now Landsea, purchased 102 completed homesites within Hammock Reserves in Haines City for $5.1 million, buying the land from Winter Haven-based Cassidy Homes.
In Hammock Reserve, Landsea plans to build homes 1,517 to 2,737 square feet and offer options for single-story and two-story homes with 3-4 bedrooms and 2 to 21/2 bathrooms. Floorplans feature open kitchens, as well as living and dining areas that will maximize entertaining. The community will include a resort-style pool and sundeck, green space and recreation area, as well as a dog park. Prices will begin at $314,999.
Landsea Homes, was named Builder of the Year by Builder 100 in April for its accomplishments in 2021. Landsea Homes moved up to the No. 47 spot on the Builder 100 list, with 1,640 closings in 2021. Its ranking does not account for the acquisition of Hanover Family Builders in January.
With numbers included for Hanover, the 103rd-ranked builder, Landsea’s closings jump to 2,228, which would move the builder up 10 spots to No. 37.