Five Point Holdings, LLC (NYSE: FPH) has announced its acquisition of a controlling interest in a newly formed entity, Hearthstone Residential Holdings, LLC, through a definitive agreement. The new venture will combine the business and operations of Hearthstone, Inc., a provider of capital solutions to the U.S. homebuilding industry.
As part of the transaction, Five Point will own 75% of the Hearthstone venture, with the remaining 25% retained by entities affiliated with Mark Porath, Hearthstone’s founder and CEO. The acquisition is expected to close by the end of the third quarter, subject to customary closing conditions.
Hearthstone, founded in 1992, manages institutional capital in residential for-sale housing in select target markets across the country. The firm has over $2.6 billion in assets under management and has funded over 173,000 homes and lots, totaling approximately $21 billion in investments in connection with approximately 750 transactions.
Five Point's CEO, Dan Hedigan, expressed excitement about the acquisition, citing the expansion of Five Point’s capabilities and the creation of new revenue streams, along with strengthening relationships with builder partners.
Mark Porath, Hearthstone's CEO, described the partnership as a strategic step forward that will allow them to scale their platform and broaden their impact while aligning with an industry leader. He emphasized the added advantage of expanded resources, enhanced capital solutions, and increased capacity to support their growth strategies for their builder clients.
Five Point Holdings, LLC designs and develops large mixed-use planned communities in Orange County, Los Angeles County, and San Francisco County, while Hearthstone, Inc. is a leading private investment partner in for-sale housing in the United States. Today the company's shares have moved -1.08% to a price of $5.50. For the full picture, make sure to review Five Point's 8-K report.
