30-06-2025
- Business
- Los Angeles Times
Irvine's Five Point Holdings Acquires Hearthstone Residential for $59.25 Million
Irvine-based Five Point Holdings agreed to acquire a 75% stake in Hearthstone Residential Holdings LLC from Hearthstone Inc. and The Mark and Lynn Porath 2000 Trust for $59.25 million. Five Point agreed to pay $56.25 million in cash and up to $3 million in stock. The acquisition is expected to close by the end of the third quarter.
'Hearthstone has built an impressive track record over more than three decades, consistently delivering value through changing market conditions, and we are very excited to bring this exceptional platform and talented team into Five Point,' said Dan Hedigan, chief executive and president of Five Point, in a statement.
Hearthstone was founded in 1992 and is focused on managing institutional capital in residential for-sale housing. Its business consists of a land banking program that provides capital to public homebuilders, a joint venture financing program, and advisory services for real estate investors and financial institutions. It has over $2.6 billion in assets under management and has funded more than 173,000 homes and lots, totaling approximately $21 billion in investments in connection with approximately 750 transactions.
Sullivan & Cromwell LLP acted as legal advisor for Five Point Holdings. Alston & Bird LLP acted as legal advisor for Hearthstone Inc. and Hearthstone Residential Holdings LLC.
Information for this article was sourced from Five Point Holdings.
