In a joint venture with private equity firm GTIS Partners, Toll Brothers has announced its plans to acquire Sienna South, the last major undeveloped parcel of Houston master-planned community Sienna Plantation.
"We are thrilled to be joining with GTIS and Johnson Development to bring Sienna South to the Houston market," said Karl Mistry, Houston division president at Toll Brothers. "With Houston's well-publicized shortage of available home sites in premier master-planned communities, we believe the project's timing, Sienna Plantation's stellar reputation, our experienced management team, excellent location, amenities and highly rated schools will attract home builders and home buyers across the price point spectrum."
The 3,700-acre Sienna South is situated in the southwest corridor of Houston and is fully zoned for up to 10,000 single-family homes, as well as 140 acres of retail and commercial use and 63 acres of civic use. Toll Brothers expects to develop 6,500 single-family lots and sell them to various home builders over the years; up to 1,750 of those lots may go to Toll Brothers' own home-building operation.
"The Houston housing market has been one of the most dynamic and resilient housing markets in the country, fueled by strong fundamental employment and economic growth," said Rob Vahradian, senior managing director at GTIS.
Sienna Plantation will be connected to Houston's Inner Loop 610 upon the completion of the Fort Bend County Parkway extension early this year. This will situate Sienna South at an approximate 30-minute commute to downtown Houston, with easy access to Sugar Land Town Square, the Texas Medical Center complex and the Houston Energy Corridor.
Toll Brothers and GTIS expect Sienna South to eventually realize gross home sales of more than $2.6 billion.