Lennar Corp. (LEN) agreed to buy 112 acres (45 hectares) from Union Pacific Corp. in the San Francisco Bay area city of Fremont, California, where the builder plans to construct 3,000 homes, said a person with knowledge of the deal.
The railroad chose Miami-based Lennar as the buyer after a bidding process that attracted other suitors, said the person, who asked not to be named because the agreement is private. The homebuilder would also construct 1 million square feet (93,000 square meters) of offices and research and development space on the site, near Silicon Valley, and a roadway to a transit station, the person said.
Marshall Ames, a Lennar spokesman, declined to comment on the land deal. Aaron Hunt, a spokesman for Omaha, Nebraska-based Union Pacific, said in an e-mail that the “transaction will empower the city to move forward with its development plan for the property in collaboration with Lennar.”
The land is adjacent to Tesla Motors Inc. (TSLA)’s manufacturing plant on a former car-staging area used by the defunct Nummi venture between General Motors Co. and Toyota Motor Corp. Fremont is located on the southern tip of San Francisco Bay, about 15 miles (24 kilometers) north of San Jose. New-home prices in Alameda County rose last month to a median of $739,000, up 57 percent from a year earlier, DataQuick said.
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