Great Park homebuilder FivePoint Communities is buying back Broadcom’s new office complex in Irvine, the company announced, a deal that possibly could add 1,000 homes to the total being built on land surrounding the park.
FivePoint and two partners completed the purchase on Thursday, Aug. 10, and will lease 64 percent of the space back to the chip maker for the next 20 years, the Aliso Viejo development firm announced. Lennar and a FivePoint subsidiary will lease space there too.
Speaking to stock analysts in the newly public firm’s first earnings conference call, CEO Emile Haddad said the deal will allow FivePoint to transfer unused development rights from the 73-acre Broadcom site to the Great Park Venture.
A decision hasn’t been made how FivePoint will use those transferred “entitlements,” but possible uses include construction of 734,000 square feet of office, 1,300 apartments or about 1,000 homesites, Haddad said.
Meanwhile, the Broadcom site is being dubbed FivePoint Gateway.
“The transaction establishes a solid foundation for our commercial operations” near the Great Park, Haddad said.
FivePoint — the master developer behind homes and businesses around the Great Park and behind portions of the park itself — said it formed a new joint venture last Friday, contributing $106.5 million and acquiring a 75 percent interest in the new partnership.
The other two members of the new joint venture, Five Point Office Venture Holdings I LLC, were identified only as affiliates of two of the existing members in the Great Park venture.
Broadcom purchased the Irvine office site for $128 million in 2015, with plans to build a 2-million-square-foot world headquarters there for about $778 million. Soon after construction began, however, Singapore-based semiconductor firm Avago bought Broadcom in 2016. Avago — since renamed Broadcom Ltd. — moved its U.S. headquarters to San Jose.
The site now has four buildings on the site with just over 1 million square feet. Two of those buildings are finished, while two others are nearing completion, FivePoint said.
Last year, Broadcom Ltd. put nearly half the site up for sale. Broadcom’s original purchase agreement, however, gives FivePoint the right to buy back the land, buildings and future building rights before a third party can buy it, the company said.
On Thursday, FivePoint exercised its right of first refusal and bought back the property and all “entitlements,” including about 961,000…