Brookfield Homes Forms Branch for High-End Custom Residences

Though most residents find it tough to afford typical home prices, wealthier residents have created a strong demand for multimillion-dollar homes.

Like some construction firms, Brookfield Homes Southland Inc., a Costa Mesa builder, is trying to cash in on the trend.

The company has formed a new division, called Brookfield Custom Homes Inc., that will build eight to 10 custom homes a year throughout Southern California. Signs of a slowing economy don’t scare Bruce D’Eliscu, who heads the custom-home division.

“We don’t believe the real high end is going to slow down,” said D’Eliscu, who was a former executive at the home-building arm of Catellus Residential Group, which Brookfield acquired last year.

D’Eliscu said his phone rings two or three times a week from affluent customers who are looking for custom homes in the $3-million-to-$5-million range.

“They want to build and seem prepared to move ahead,” he said. “They want to put their money into their home, and won’t need to sell stocks or anything to buy a home. Whatever their investments are, they believe in real estate for the long-term.”

Brookfield, hoping to jump into an industry filled with small, privately held firms, will build its first units in Irvine. The company is scheduled to build four homes beginning in March at Shady Canyon, the affluent new area planned by the Irvine Co., Orange County’s largest landowner.

John Burns, an analyst at the Meyers Group in Irvine, said other builders may follow Brookfield’s lead. Unlike the risks in mass building, there’s little risk in launching a separate division for custom building, Burns said. The buyer assumes most of the risk for the unique homes, purchasing the land and paying for the structure, tying up less of the builder’s capital.

Daryl Strickland covers real estate for The Times. He can be reached at (714) 966-5670 and at daryl.strickland@latimes.com.