RIVERSIDE, Calif., Dec. 8, 2021 /PRNewswire/ — The Hoffman Company, a leader in the land brokerage industry based in Irvine, closed the sale of 26-acres envisioned for a build-to-rent townhome community in Southwest Riverside County, California.
Developer Sancerra Communities and STG Capital Partners plan to build a neighborhood of 163 townhomes near the Temescal Mountains. Located at Palomar Street and Jefferson Avenue in Wildomar, construction is scheduled to begin fourth quarter of 2022 with first homes available beginning second quarter of 2024.
"The Southwest Riverside County/Temecula submarket is attractive from an investment standpoint. With year-over-year rent growth approaching 20%, vacancy rates hovering near 3% 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," said Marcus Cook, Managing Partner of Sancerra Communities. "We are particularly bullish on build-for-rent communities in supply-constrained markets like California."
Build-for-rent communities – single-family homes built specifically as managed rental communities – are a recent trend in response to demographic shifts and the evolution of customer preferences. However, the high price tag of scarce land combined with a difficult entitlement process and fees in California have proved challenging for developers.
"There is plenty of investor demand for build-for-rent opportunities in California, but opportunities are scarce. This model has worked best where land is plentiful and cheap, and development costs are low," said Justin Woodworth, Managing Director of Multifamily Markets for The Hoffman Company, who brokered the transaction. "There aren’t many developers like Sancerra that have figured out how to make it work in California."
With four similar projects already in the works in other markets across, Sancerra has plans to invest an additional $500 million on similar properties over the next five years.
"California’s development process is complex relative to other parts of the country, so the state builds fewer homes than are needed each year. Sancerra was formed to address California’s housing shortage, and we are thankful for the opportunity to work with the City of Wildomar to bring this new housing alternative to its community," said Cook.
This community offers three floorplans from 1,417 to 1,698 square feet. Plan One features a dual master bedroom with 2.5 baths and plans Two and Three will have three bedrooms and 2.5 baths. All homes have a walk-in closet in the master bedrooms, an attached two-car garage and upstairs laundry with space for a side-by-side washer and dryer.
SOURCE The Hoffman Company