By james art The Charlotte-based single-family residential developer that recently acquired the Caleb’s Creek community in Kernersville sold lots in two sections for a total of $9.48 million.
The Forsyth County Register of Deeds filed Tuesday has an affiliate of Essential Housing Asset Management of Scottsdale, Ariz., as the buyer of 47 lots in the Quail Run section and 67 lots in the Pheasants Trace section.
The Quail Run section has a lot on Mallard and Wren drives. Pheasants Trace’s address is listed as 7435 Watkins Ford Road, which covers 165.3 acres.
Lennar Carolinas LLC could not immediately be reached for comment on the decision to sell the 114 lots.
Lennar Carolinas is an affiliate of Lennar, an Irvine, Calif.-based new homebuilder with a presence in 26 states. Its target homebuyers are typically entry-level buyers, first-time buyers and buyers on the move.
Lennar paid $78.7 million in September for 700 acres in Caleb’s Creek. At the time, Lennar said it had plans for up to 2,194 home sites.
Lennar Carolinas said in September that it expects to begin sales of new homes in Caleb’s Creek later this year. For more information, go to Lennar.com/Winston-Salem or call 800-295-1039.
“As companies invest heavily in the Triad, creating tremendous job opportunities coupled with the overall quality of life in the area, the region needs new housing to meet growing demand,” said Mark Henninger, president of Lennar Carolinas.
“Lennar is committed to providing high-quality homes in a welcoming community that attracts both new neighbors and local families who are ready to upgrade during this exciting time.”
A “land banking” strategy.
Essential Housing is a private lender with properties typically sold in the affordable housing market.
An Essential Housing official declined on Tuesday to comment on the developer’s plans beyond what has been made public.
According to the New Home Insight podcast, Essential CEO Steve Benson describes the lender’s strategy as “land banking,” where the lender buys lots from a developer and makes a profit by taking on the risks of owning land.
Benson said the builder can buy on the fly, picking up the lot he needs as he builds. If the original developer decides not to buy back the plots, the land banker can sell them to another developer.
John-Lewis Godfrey, past president of the Winston-Salem Regional Association of Realtors, said land banking in the Triad “is common in down markets.”
“But the cost of holding and carrying land in the hot market we’ve had recently has limited the practice with developers beyond ensuring they have enough inventory to keep the wheels turning for the next few years.”
Godfrey is convinced that Lennar’s purchase of Caleb’s Creek “wasn’t a necessary land-banking play.”
“They really want to be in that market and they’re willing to pay to do it, even with a project as big and difficult as Caleb’s Creek was,” with DR Horton and Hubbard pulling out of the project in recent years.
Caleb’s Creek details
Lennar said Caleb’s Creek will offer townhomes, ranch-style homes and duplexes. It will feature multiple pools, clubhouses, cabana structures, pickleball courts, linear parks and miles of walking trails.
Each home will offer Lennar’s All Inclusive program, where the builder’s most popular features and finishes are built into the home’s base price. This includes quartz countertops, high-end stainless steel kitchen appliances, designer select cabinetry and a host of other carefully selected interior touches and design elements.
So far, the largest of the lots included in the sale is listed as 0 Teague Lane. The Forsyth County Tax Parcel website does not include an acreage for this lot.
Lennar has the Caleb’s Creek development listed on its website as coming soon at 1630 Teague Lane.
The website also lists what is being branded as the Enclave Collection at Caleb’s Creek, “offering some of the largest single-family homes available in Caleb’s Creek.”
The presence of Lennard’s Triad
Residential construction is underway at Lennar’s Reynolds Crossing development at the former LA Reynolds Garden Showcase site in west Forsyth County.
This development will include 102 single-family residential lots at 4400 Styers Ferry Road in the $400,000 range. It is now listing homes available for purchase.
Lennar also has released plans for Hillcrest, a “low maintenance” townhome community at 3155 Fall Hills Drive off South Stratford Road in Winston-Salem. Part of the property is on the site of the former Hillcrest Golf Club.
Although Lennar’s primary projects in North Carolina are in the Charlotte and Triangle markets, it has established offices in Greensboro, covering the Triad, and in Wilmington.
In March 2023, Lennar announced plans to expand its presence in the Triad through land acquisitions and new community development opportunities.
Henniger said when it purchased the former LA Reynolds property, the company “is excited to expand its presence in the highly desirable Piedmont Triad area.”
“Our new Reynolds Crossing community will offer single-family homes that bring both value and affordability to first-time homebuyers and families looking to put down roots and settle in this great location,” he said.
As it expands in the area, Lennar’s offerings will include townhomes, single-family homes and an active senior community 55 and older.
Lennar’s first new home community in Walkertown features homes ranging from 2,472 to 2,619 square feet along with four to five bedrooms and three bathrooms. The company has also sold homes in the King area.