Del Webb abandons La Cresta near Orlando, Florida
Last week, Del Webb halted plans to continue with their much-hyped La Cresta active adult community near Orlando. La Cresta opened in 2006 in the planned golf community of Ridgewood Lakes. It was to offer 1,900 homes and a 31,000 square foot recreation center that would have included a state-of-the-art fitness center, indoor and outdoor pools, and outdoor activities, such as golf, tennis, nature trails, canoeing, horseshoes, bocce ball, and fishing.
At this time, the future of the La Cresta project and the implications for current homeowners is unsure. The community is now home to 90 residents, a boarded-up sales office, empty lots, half built homes and an activities center in the beginning stages of construction.
Real estate in Florida has been hard hit in the last three years and even active adult communities are not immune to the downturn. Numerous foreclosures have flooded the market and driven down prices across the state. Under these conditions, builders are hard pressed to sell new homes or spec homes that are not yet built.
Del Webb is a reputed name as an active adult community builder and this move is uncharacteristic for the company, which has built dozens of communities across Florida and the rest of the country. This adult community, located near Orlando, was to join the company’s other current properties in Florida: Riverwood at Nocatee, Stone Creek, Ave Maria, BellaTrae, and Sweetwater.
La Cresta offered single family homes from 1,300 to 2,300 square feet that were priced from the high $100’s. It is located a few miles from shopping, dining and medical facilities, and was located in a region favored by many second home buyers.
Presently, ninety residents live in the La Cresta active adult community in Davenport. With half-built homes and the skeleton of an activity center, Del Webb claims that the landowner, JL Land Development, did not provide adequate permits for the project.
Del Webb is currently in litigation with the owner of the land, and has promised current homeowners that it will fulfill its promises on warranties for any unfinished homes. Del Webb recently took over a property in Tucson, Arizona, that had been under construction by K. Hovnanian for $8 million and also acquired Centex Homes for $1.3 billion in April. These purchases make it evident that Del Webb has available cash. It is hoped that when the land issues are resolved, Del Webb will be able to continue their plans for construction of the active adult community at La Cresta.
Update (April 2010): Del Webb will continue with construction of La Cresta under the new name Del Webb Orlando.
{ 7 comments… read them below or add one }
I live in La Cresta and we are shocked at the bold moves taken by Pulte Homes. At a recent meeting with the Regional President of Pulte Homes from Tampa, Florida, the homeowners did not get any straight answers from Pulte as to if and when they would ever return to build out the community. It looks like a ghost town. Empty lots, huge activities center with green rainwater in the pools and tar paper flapping on the roof. Some folks spent their whole retirement nest egg on their home and I feel very sorry for them. Watch out future Dell Webb/pulte purchasers. It could happen to you!
Bill,
Thanks for the article. I am surprised to hear of this move by Del Webb as my experiences with them have been very positive. Keep us updated on what comes out of the litigation.
I’m concerned considerng this is truly not a Del Webb Community in as Del Webb advertises a 55+ gated community with all amenities. I wonder if this is not a ploy by Pulte to pull out because it does not meet the Del Webb standards..This is/was a 24-hr gated community when we purchased our home, inside a community that is not 55+, the gate is now only manned from 6pm to 6am and there are NO amenities. I understand that Pulte is in ligatition with JL Land, and it is my understanding that JL Land is looking for a buyer to finish the project and the amenities center, I question how this is possible if the two parties are in litigation. As the other homeowners, I am concerned about the value – if any- I will have in my home in a couple years. At this point I wouldn’t be able to sell it for what I paid for it, I MIGHt be able to give it away,,
I’ll bet Del webb is sorry they sold there good name.
I live in Carroll Vista located in Taneytown, Maryland and this is a Del Webb community. Pulte has pulled out of our development leaving 13 lots empty. Hopefully some other builder will come and finish our community.
La Cresta is back and is reopening as Del Webb Orlando. It is going to be awesome. My husband and I bought the first house here 3 years ago and just knew that this is going to be a hidden treasure.
The Grand Opening was a huge success on June 26, 2110 and 500 people came through the models. This community is the best kept secret for the active adult in Central Florida near Disney.