By Iris Richmond. Standard Pacific has avoided infill projects -- until recently. While cycle times are significantly longer and the entitlement risks higher, infill provides an alternative market segment to tap. The company is getting its feet wet on its first high-density project to date, Playa Vista, located in West Los Angeles, where it's building condos ranging from $290,000 to $390,000 for 1,000 to 1,750 square feet.
"Our strategy is to be opportunistic," says Alan Boeker, director of urban development, the new business segment formed less than a year ago as part of its Orange County division. "We're diversifying our plan and broadening our market now in anticipation of infill becoming an increasingly larger share of the units we build in the next five years."
The Irvine, Calif.-based company allocated $20 million to fund its expansion into infill and has six properties in the Los Angeles area under negotiation.
"We're creating profits from a new line of business rather than getting into a business for the purpose of achieving higher returns," says Scott Stowell, division president.