Looks like Lennar bit off more than they can chew, with Dean Gardens Subdivision.
The corporate headquarters has ordered the local Atlanta division to stop construction and NOT sell homes, despite the long waitlist.
The large homes, squeezed on small lots, had a price point of around $700k.
Lennar is known as a quantity, tract-builder.
We wrote about the Dean Gardens rezoning here...
Much of the land was unbuildable and had severe erosion problems. With the property affronting the Chattahoochee River, the Metropolitan River Protection Act & Atlanta Regional Commission have strict rules for development within 2000 feet of the river.
It is speculated that it cost $12-13million for land development (demolition, earthwork, etc). Millions of dollars worth of hardscaping and landscaping were removed during the demolition.
Lennar bought the land from Tyler Perry for $9.2million.
Although Lennar was approved for 70 houses, it appears they will only be able to squeeze 68 64 homes.
This would break down to $325k per house, before any construction costs.
With the price point, parcel size, and quality offered, it appears not feasible to sell and make a profit.
These numbers don't sound right. It probably only cost $3Million to demolish the Dean Mansion and put in streets, sewers, and utilities.
The only reason one would stop construction is if Lennar felt the price of homes would be higher in the future OR that they could sell the property to another developer for more than it would cost them to develop it.
Too bad this didn't become a park, and maybe it still can...
There was significant earthwork done to stabilize the land.
2 retention ponds were built, along with a lot of drainage work.
If it only cost Lennar $ 3million, there would be a very nice profit line from selling the 68 houses.
Also they prepared for the small lots during the land development with the curb cuts and sewer lines in the ground for each parcel.
If they were to sell to another developer to redevelop it differently for sale, why go to the trouble?
Lennar can't sell those houses for a million dollars a pop.
They would need to get that much, to be profitable.
It costs $100 square foot to build, each home is 3000', the construction cost is $300,000.
If your numbers are correct then that would bring the costs to about $700k per house. The houses are not worth more then that, if that much.
Lennar had to stop.
Folks want to spend $700k-$1million they can go to CCOS and get a custom build estate in a prestigious subdivision.
Great job Bodker approving this zoning.
Should have been a park!
I agree, a park would have been such an asset to our community! I live in CCOS and there are only a couple of lots left for those that want to custom build though and the lots are in the price range you think the houses can be built for. There is very little on the market here in the $700K - $1M range. The only home under construction right now that I know of that is for sale is listed at $2M. Most of the resales are in the mid $1.5M range and some are much higher than that. $800K seems to be the bottom of the market in the subdivision right now.
What a wasted opportunity. This would have been an incredible location for a town center.
Having a town center in the middle of the 100% residential River Estates character area is a HORRIBLE thought. You obviously don't live in the Old Alabama corridor !!!
Certainly it could have been a "government" Town Center without the commercial development. What better way for a local government to define what it is than to be nestled among many of the various neighborhoods it was created for?
Activity during the day. Quiet in the evenings. Surrounded by a park-like setting.
Not every project needs to include commercial aspects.
The man-made idea of "character areas" unfortunately pits one area against another with arbitrary lines of division.
Our community should be one character area:Johns Creek.
Respectfully disagree, Why Not. You do not seem to comprehend that the entire purpose of character areas is to separate higher-density housing from lower-density housing (e.g. R3 vs R1). Also to segregate residential areas from commercial development so that we have defined boundaries. If you think a government town center is only active during the day, try going up to current City Hall at 12000 Findley Road and weekday evening. Always something going on that adds traffic. Keep all of this government activity in the Technology Park character area and out of River Estates, Autry Mill, Warsaw, etc.
Yeah, those arbitrary lines of division, who needs ‘em!! Let’s just get rid of them all, city, county, state. Instead of the United States, we could be the Federated People’s Oligarchy.
Nice, what was a beautiful tract of land in our community is now an eyesore and the land devalued. Nice work city council.
Read the reviews on Lennar and that could answer some of the questions.
Creative destruction is how I think of Dean Gardens. Millions in actual value destroyed in a unique one of a kind property for the potential of adding yet another neighborhood along the river becoming just one of the many we have, with potentially less appeal than the current neighborhoods.
Now how smart was that?
It was too far for Bodker to drive every day. That is probably why it wasn't developed into a town center.
Wonder if it can be a "pocket park". Beautiful land.
Sweet idea
Tyler Perry sold the land for $9.2 million and the City recently purchased the Cauley Creek land that contains a sewage treatment facility for $20.3 million, and Fulton County has plenty of capacity and the piping infrastructure already in the ground to properly treat JC's sewage???
It's like some folks have already said, the City could have purchased Mr. Perry's land to build a park for much less and saved plenty of money.
Too bad, JC folks, but Tyler Perry REFUSED to "take care" of the *Negotiator*
so, they lost 2 potential lots and its a bust..
Actually, we overestimated what they can build which is now down to 64.
Remember, Lennar originally wanted 120+ homes.
70 was the minimum number approved to purchase Dean Gardens, although they cannot build that many.
Does anyone have any updates as to what is happening with this property?