City Ventures Splits Model to Sell Lots to National Builders

City Ventures completed three land sales this year, closing deals that total more than 160 planned homes.

The Irvine-based real estate developer secured $35.3 million from two disclosed transactions. The company sold construction-ready sites to national homebuilders, a strategy that allows it to separate its land approval work from its homebuilding operations.

Craig Atkins, co-chairman of City Ventures, explained that the firm operates in two distinct business segments. One side focuses on building and developing residential lots for other merchant builders, typically public companies. The other side involves building houses for direct sale. Atkins noted that the company tries to create profits from both buckets, though it approaches different deals with different strategies.

Founded in 2009, City Ventures has constructed more than 5,000 units of housing across Southern and Northern California. These include townhomes, condos, lofts, mixed-use developments, and single-family detached homes. The company markets itself as an eco-friendly builder, ensuring every home is solar-powered and all-electric. Current projects are underway in La Habra and Santa Ana.

The most recent transaction involved a 2.65-acre parcel at 19081 Yorba Linda Blvd. in Yorba Linda. City Ventures sold this flag-shaped plot to Atlanta-based Beazer Homes for $21.8 million in September. City documents indicate the approved development will include 62 three-story townhomes. The units will range in size from 1,300 to 1,600 square feet.

That sale followed a July deal in Santa Ana, where City Ventures sold a 1.94-acre site to Century Communities for $13.5 million. The property at 510-520 N. Harbor Blvd. is approved for a 45-lot development. CoStar data valued the land at approximately $7 million per acre. The site was fully entitled, with grading, utilities, and streets already completed, allowing Century Communities to begin construction immediately.

In February, the company also sold a 2.3-acre site in Santee to Lennar. This 53-lot development is known as Paseo Park Center Townhomes. The sales price for that transaction was not disclosed. Atkins said the company has additional land sales lined up for 2027, emphasizing that selling entitled land allows for quicker recovery of investment costs.

Atkins described the land acquisition and approval process as lengthy and expensive, noting that some competitors give up due to regulatory hurdles. He pointed out that coastal areas of California can be particularly challenging, with entitlements often taking years. To manage opposition from nearby residents, the company conducts community outreach early in the development phase. Atkins stated that selling land provides immediate cash flow, while building homes generates higher profits over a longer timeline.