Lennar Corporation, the Miami, Florida-based parent company of Lennar Homes, has finished a deal that will increase its California construction operations by some 3,000 homes.
The Fortune 500 company will buy 112 acres of land in Fremont, CA, a San Francisco Bay area city, according to Bloomberg. Lennar is purchasing the land from Union Pacific Corp., a freight railroad company operating in the western United States.
Lennar is also expected to build offices and research and development facilities on the land. The nonresidential construction is estimated to add about 1 million square feet of space to the project.
The Fremont land deal progressed through an extensive and competitive bidding process that attracted interest from other unnamed companies.
Lennar’s land purchase is adjacent to a manufacturing facility operated by Tesla Motors Inc. The city of Fremont is situated on the southern tip of San Francisco Bay and is approximately 15 miles north of San Jose.
The expansion of Lennar’s California operations comes as the company reports significant increases in residential construction starts around the country in the first quarter of 2014. This follows projections by organizations such as the National Association of Home Builders for increases in single-family and multi-family housing starts of 25 percent or more in 2014.
Lennar Homes’ new California construction fits comfortably within the company’s projections of building 22,000 new homes nationwide in 2014, as reported by The Real Deal. California is one of several states where Lennar expects significant growth this year.
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