“Build-for-rent” community envisioned in Inland Empire

26-acre land deal another sign of area’s growth

Los Angeles /
Dec.December 13, 2021 11:00 AM
Sancerra's Marcus Cook and STG Capital Partners' Marshall Haines (iStock, USC Lusk, STG)
Sancerra’s Marcus Cook and STG Capital Partners’ Marshall Haines (iStock, USC Lusk, STG)

The latest project to offer evidence of the Inland Empire’s accelerating housing market calls for 163 townhomes to be developed as rentals in southwest Riverside County.

Sancerra Communities is partnering with STG Capital Partners and recently bought 26 acres for the proposed development. The Hoffman Company, which brokered the transaction, announced the land deal and planned project on Wednesday.

The townhomes are slated to go up at Palomar Street and Jefferson Avenue in the city of Wildomar. Wildomar is located about 12 miles northwest of Temecula and about 75 miles southeast of Downtown L.A.

In a release, a Sancerra principal highlighted both the area’s rising rents and increasing population.

“The Southwest Riverside County/Temecula submarket is attractive from an investment standpoint,” said Marcus Cook, Sancerra’s managing partner. Cook noted that that particular submarket had seen near 20 percent year-over-year rent growth, a low vacancy rate and “one of the fastest-growing populations in the Inland Empire.”

Construction is scheduled to begin toward the end of 2022, according to a release, with the community’s first homes ready in 2024.

The townhomes will range from 1,417 to 1,698 square-feet, with the larger floor plans calling for three bedrooms and two and a half bathrooms.

The “build-for-rent” plan is the latest example of an increasingly popular development option often intended to target more middle-income renters who are at least momentarily precluded from buying homes in California’s soaring housing market. The project’s marketing reflects those circumstances, with promotions touting it as “a community designed for young and maturing family renters.”

Sancerra is based in Newport Beach and bills itself as a company that “provides socially responsible, collaborative real estate asset solutions for property owners and communities undergoing periods of transformation”; the firm also has four similar projects underway.

Across the country, the build-for-rent development trend started booming in 2020, as more and more potential homeowners were priced out by a soaring market, and analysts predict it will become an increasingly large share of the housing market.

During the pandemic Riverside and San Bernardino Counties, which together form the Inland Empire market, have seen more incoming residents than just about anywhere in the country, as thousands of Californians have fled increasingly unaffordable coastal cities. And rents — though still cheaper than those in much of Southern California — have been rising apace. For the first quarter of 2021, the region saw a $130 monthly increase compared to a year earlier, representing the largest percentage rent hike in the country.





    Related Articles

    arrow_forward_ios
    Jeff Bezos and Randy Kendrick and 3301 Medford Street (Getty, Xebec Realty, Google Maps)
    Amazon to open 202K sf warehouse in East LA
    Amazon to open 202K sf warehouse in East LA
    Randy Kendrick, chief executive officer, Xebec Realty, and 12975 Bradley Avenue in Sylmar, CA (Xebec Realty, LoopNet)
    Xebec looks to flip Sylmar industrial to self
    Xebec looks to flip Sylmar industrial to self
    A rendering of 10130-10136 Adella Avenue and Newport Ventures’ Dave Mossman and Kemp Bros. Construction's Greg Solaas (LinkedIn, Kemp Bros., CBRE)
    South Gate lot entitled for 78 resi units up for sale
    South Gate lot entitled for 78 resi units up for sale
    Neil Shekhter, WS Communities CEO Scott Walter and 1550 Lincoln Boulevard
    Shekhter’s WSC gets $125M loan for LA resi developments
    Shekhter’s WSC gets $125M loan for LA resi developments
    Rob Speyer (President, Chief Executive Officer, Tishman Speyer) & Neil Shekhter (Founder, Chief Executive Officer, NMS Properties) (iStock, Tishman Speyer, NMS Properties, Illustration by Kevin Cifuentes for The Real Deal)
    Tishman Speyer to build 620 units on Santa Monica sites
    Tishman Speyer to build 620 units on Santa Monica sites
    OC-based JV gets $77M loan for Inland Empire residential
    OC-based JV gets $77M loan for Inland Empire residential
    OC-based JV gets $77M loan for Inland Empire residential
    From Kmart to Cop Shop in Inland Empire
    From Kmart to Cop Shop in Inland Empire
    From Kmart to Cop Shop in Inland Empire
    Court clears new housing near Expo Line
    Court clears new housing near Expo Line
    Court clears new housing near Expo Line
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...