Aetna Sells Part of Ponderosa Homes Unit

Ponderosa Homes, the Irvine building subsidiary of Aetna Life & Casualty Co., said Tuesday it sold its Northern California operations to a group of former executives for an undisclosed amount.

The giant Hartford, Conn., insurance company is also “examining methods of divesting itself” of Ponderosa’s remaining Southern California operations, according to a company spokeswoman.

The sale and possible future divestiture are part of Aetna’s plan to get out of the construction business but remain a passive investor in real estate projects, according to real estate and insurance industry sources.

One real estate industry source said Aetna plans to continue providing financing for the Northern California operation’s development activities. Aetna officials could not be reached for comment Tuesday.

Although the purchase price wasn’t disclosed, industry observers said it must have been in the tens of millions of dollars. Ponderosa had sales of more than $263 million in 1984. The Northern California division has 90 employees and approximately 1,000 single-family homes in various stages of construction, according to a spokeswoman.

The Southern California operation will continue operating as an Aetna subsidiary until the parent company makes a decision on its divestiture. The company has 135 employees and 4,000 residential units under construction in Orange, Los Angeles, San Diego and San Bernardino counties.

Ponderosa has been a successful builder for many years, according to Alfred Gobar, a Brea-based real estate consultant. He said Aetna is selling off the company because it sees more profit potential in participating with Ponderosa and other developers as an investor in joint ventures than as the outright owner of a construction company.