Catellus Buys Into Sacramento Market

Catellus Residential Group of Irvine has grabbed a stake in the Sacramento housing market, buying a two-thirds interest in Serrano Associations LLC, which is acquiring a 3,500-acre master-planned community near the state Capitol.

The deal for Catellus marks its second involving a planned community in little more than a year. In 1997, the company joined Standard Pacific Corp. and Starwood Capital Group to develop the 3,510-acre Talega community in south Orange County.

The company’s strategy is to invest in growing communities where new homes are in short supply, said Bruce Akins, the company’s president. “We see the purchase of Serrano on par with the purchase of Talega in terms of securing a solid presence for Catellus in two of the state’s most dynamic markets,” Akins said.

The Serrano planned community has the potential for 4,000 housing units. It includes a 34,000-square-foot country club, two 18-hole golf courses and a shopping center. Home prices range from about $175,000 to $1 million, the company said.