HORSHAM, PA. and NEW YORK -- Toll Brothers, Inc., the nation's leading builder of luxury homes, in a joint venture with GTIS Partners, a real estate private equity firm headquartered in New York City with offices in Los Angeles and Sao Paulo, today announced the acquisition of Sienna South, the last major undeveloped parcel of Sienna Plantation, one of Houston's most successful master planned communities.
Sienna South is a 3,700-acre site located in Houston's booming southwest corridor. Although fully zoned for up to 10,000 single-family homes, along with 140 acres of retail and commercial use and 63 acres of civic use, the Toll-GTIS joint venture expects to develop approximately 6,500 single-family home lots which will be sold to local, regional and national home builders over the anticipated life of the community. Toll Brothers may acquire up to 1,750 of those lots for its own home building operation over that time period. When fully built out, it is anticipated that Sienna South will have generated gross home sales of over $2.6 billion. The JV has entered into an agreement with The Johnson Development Corp., developer of Sienna Plantation and other prestigious Houston communities, to act as master developer.
Sienna South is the last major parcel of developable land within Sienna Plantation, an award-winning 7,000-acre master planned community. Begun in the 1990's by Johnson Development, the community is home to more than 20,000 residents. Sienna South's master plan includes over 1,100 acres of open space with an impressive array of parks, lakes, sports fields, pools, clubhouses and hiking trails.
The extension of the County-financed Fort Bend County Parkway, scheduled to be completed by early 2014, will connect Sienna Plantation directly to Houston's Inner Loop 610. Upon completion, a commute to downtown Houston will take 30 minutes. Sienna South will offer easy access to major retail and employment centers such as Sugar Land Town Square, a 1.4 million square foot, 32-acre office and shopping complex.
The community is only a 25-minute drive from the Texas Medical Center complex, the largest medical complex in the world. TheTexas Medical Center is an internationally recognized community of medical care, research and teaching, with an operating budget of $15 billion. Its 50+ member institutions handle over 7 million patient visits annually and employ approximately 106,000 people, including 5,000 physicians, 15,000 nurses, 5,700 researchers and 17,500 faculty, who educate 49,000 Life Sciences students and draw in over $3.4 billion in research funds annually.
Sienna South also offers easy access to the growing Houston Energy Corridor. Located along I-10, The Energy Corridor is defined by the many international energy companies that call it home, including BP America, Shell Oil, and ConocoPhillips.
Site improvements at Sienna South are slated to commence in April 2014, with sales of lots to builders projected to commence in late 2014. Sales to home buyers should begin in 2015.
Karl Mistry, Toll Brothers' Houston Division President, stated: "We are thrilled to be joining with GTIS and Johnson Development to bring Sienna South to the Houston market. With Houston's well-publicized shortage of available home sites in premier master planned communities, we believe the project's timing, Sienna Plantation's stellar reputation, our experienced management team, excellent location, amenities and highly rated schools will attract home builders and home buyers across the price point spectrum.
"Fort Bend County has the third-highest median household income of all counties in Texas and is among the top 30 nationwide. It offers a vast array of employment and recreational opportunities, making it one of the most desirable places in the U.S. in which to live.
"Toll Brothers entered Texas in 1994 and is five-time winner of the Texas Builder of the Year Award from the Texas Association of Builders. We are currently offering homes in 28 communities in Dallas, Houston and San Antonio. Beginning in 2014 we will be offering homes in two new communities in Austin as well. Sienna South continues our association with the highest-quality communities in one of the most exciting housing markets in the U.S.A."
Rob Vahradian, Senior Managing Director at GTIS, noted: "The Houston housing market has been one of the most dynamic and resilient housing markets in the country, fueled by strong fundamental employment and economic growth." Ed McDowell, Managing Director at GTIS, added: "Given that this is a continuation of the highly-successful Sienna Plantation master planned community and that we are partnering with one of the country's premier luxury homebuilders in Toll Brothers and one of the most experienced and respected land developers in Texas in Johnson Development, we are extremely enthusiastic about our investment in Sienna South."