The Hoffman Co., a land brokerage firm based in Irvine, California, recently closed the sale of a 26-acre parcel of land envisioned for a new build-to-rent townhome community in southwest Riverside County. Developer Sancerra Communities and its partner, STG Capital Partners, plan to build a neighborhood of 163 townhomes nestled near the foothills of the Temescal Mountains.
Located at the intersection of Palomar Street and Jefferson Avenue in the city of Wildomar, construction is scheduled to begin in the fourth quarter of 2022 with the first homes available for lease beginning in the second quarter of 2024.
“The Southwest Riverside County/Temecula submarket is extremely 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,” says Marcus Cook, managing partner of Sancerra Communities. “We are particularly bullish on build-for-rent communities in supply-constrained markets like California.”
The developer appears to have found the right recipe for build-for-rent in California. With four similar projects already in the works in other markets across the state and an appetite for continued growth, Sancerra has plans to invest an additional $500 million on similar properties over the next five years.
“California’s development process is overly complex and burdensome relative to most other parts of the country, and, as a result, the state builds far fewer homes than are needed each year,” continues Cook. “Sancerra was formed to address the state’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.”
This new community will offer three modern floor plans ranging from 1,417 to 1,698 square feet. Plan one features a dual master bedroom configuration with two-and-a-half baths and plans two and three will have three bedrooms and two-and-a-half baths. All homes will have a spacious walk-in closet in the master bedroom, an attached two-car garage, and a convenient upstairs laundry room with space for a full-size, side-by-side washer and dryer.
Community amenities are similarly designed to appeal to young and maturing families and include a pool, a spa, cabanas, barbecue grills, a dog park, a tot lot, and sports courts.
