To Attract Home Buyers, Developers Build Schools First
Developers draw buyers by building classrooms for their kids
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Real estate developer FivePoint Communities Management is already building a school at its Great Park Neighborhoods project in Irvine, Calif., even though it’s still selling the first 700 homes. “We build the schools ahead of time,” says Emile Haddad, chief executive officer of FivePoint, which has permits for about 10,000 homes at Great Park. “That way we always have them ready.”
Homebuilders have touted local schools, along with parks and recreation facilities, to attract buyers to their communities for decades. Now, as school districts face tight budgets and homebuilders compete to draw families able to qualify for mortgages, developers are taking the lead, helping to launch public, private, and charter schools.