IE Business Daily Business news for the Inland Empire.
Two Newport Beach developers plan to build 163 townhomes in Wildomar in southwest Riverside County.
Sancerra Communities and STG Capital Partners have purchased a 26-acre parcel at Palomar Street and Jefferson Avenue and will develop a build-to rent community there, according to a statement released Tuesday.
Cost of the parcel, and information about the seller, was not disclosed. The Hoffman Co., an Irvine-based land brokerage firm, negotiated and announced the transaction.
“The southwest Riverside County/Temecula submarket is extremely attractive from an investment standpoint,” said Marcus Cook, Sancerra’s managing partner, in the statement. “With year-over-year rent growth approaching 20 percent, vacancy rates hovering near three percent and one of the fastest-growing populations in the Inland Empire, the submarket has outperformed most markets across the country since the start of the pandemic.”
Build-for-rent communities are single-family homes that are managed rental communities. They are a response to changing demographics and consumer tastes and are relatively new, and they can be difficult to approve.
Sancerra has four similar projects under development statewide, and it plans to invest $500 million on similar projects during the next five years. Construction on the Wildomar development is expected to start during the fourth quarter of next year, according to the statement.
