Residential equity provider to bring 113 new townhomes to supply-constrained Southern California; yearend transaction marks $100 million in total equity commitments for the company and its partners in 2020
Escondido and Newport Beach, Calif. (February 1, 2021) – IHP Capital Partners, one of the nation’s leading real estate investment firms, today announced the acquisition of 4.9-acres of unimproved land in Escondido, Calif. for the development of 113 three-story townhomes. IHP partnered with California West Communities, a San Diego-based residential land developer and homebuilding company, in their eleventh joint venture to bring the new community, named Eclipse, to north inland San Diego County. The project is IHP’s sixth equity commitment in 2020, bolstering the company’s portfolio to 28 total active investments leading into 2021.
“While California continues to experience a shortage of new homes at affordable price points, we are excited to partner with California West again to bring a well-designed community with preferred amenities to the inland San Diego region,” said Jeff Enes, senior vice president at IHP Capital Partners. “Eclipse will provide homebuyers attractively priced townhomes with floorplans that are in high demand and rare in this area – especially as homebuyers seek layouts that include designated spaces for offices, home learning and other uses.”
The residences at Eclipse will range in size from 1,143 to 1,578 square feet. Floorplans will feature two to four bedrooms and a two-car, direct access garage. Unique from other actively selling or recently built for-sale multifamily developments in the area, 29 of Eclipse’s townhomes will offer four-bedroom layouts. Further, 54 (48%) of the townhomes are end units, providing ample natural light via windows and doors on three sides of the home.
Amenities within Eclipse include a recreation center with a swimming pool and jacuzzi in addition to a tot lot. The community will feature several landscaped open spaces throughout. Eclipse’s recreational area will be completed in the initial project phase with the model homes and the first stage of construction, allowing prospective buyers to view the community amenities while touring the residences.
The Eclipse homes will be priced below the County of San Diego Federal Housing Administration (FHA) loan limit, allowing prospective buyers to qualify for FHA financing. The project is currently in the early stages of development with groundbreaking planned for Q1 2021. Sales are anticipated to open in Q1 2022.
Eclipse is located at the southwest corner of Brotherton Road and Centre City Parkway (State Route 15), a main thoroughfare that leads to downtown Escondido. The property is within an established suburban residential area accessible to local restaurants and retail amenities. It is also less than one mile east of the Interstate 15 Citracado Parkway onramp, providing convenient access to San Diego County’s major employment centers in Carlsbad, Sorrento Valley and downtown San Diego.
“The Eclipse acquisition is a terrific way for our team to start the new year. IHP committed over $100 million along with its partners to residential development projects in 2020, and we look forward to working with exceptional builders like California West on more premier residential investments in 2021,” said Richard Whiteley, co-president and chief operating officer at IHP Capital Partners. “Limited inventory and low interest rates continue to drive price appreciation and demand for new homes throughout the western U.S. Eclipse’s market debut in 2022 will be well-timed as pent-up demand for additional new product is anticipated to increase over the next year.”
IHP and California West Communities also partnered in the development of Skyhaus, a 100-townhome community located in the Rancho Tesoro master plan in San Marcos, Calif. Skyhaus homes were priced from the low $500,000s to low $600,000s, and the development sold out ahead of its original business plan.
A strategic partner for developers and homebuilders throughout the western U.S., IHP currently has 17 residential projects in various stages of development throughout Southern California. The company recently closed escrow on a five-acre infill site in Claremont, Calif. in partnership with North American homebuilder Intracorp. The site, which is the final phase of the Old School House Specific Plan, will be home to a mix of 96 single-family detached homes, duplexes and townhomes.
IHP and its partners completed the following California developments in 2020: Main Ranch (139 single-family homes in El Cajon), Russell Ranch (1,025 lots in Folsom), River Ridge (152 single-family homes in Oxnard), McCanna Hills (1,560 lots in Riverside) and The District at Northridge (166 homes in Northridge) and San Pedro Square (78 multifamily homes in San Jose).
About IHP Capital Partners
Founded in 1992, IHP Capital Partners is one of the nation’s leading real estate investment firms. The company facilitates a path to success for its investor and development partners by providing equity for residential projects throughout the country, with a focus on the western U.S. A tactical partner and trusted fiduciary for nearly 30 years, IHP’s track record is built on experience, expertise and long-term sustained partnerships with well-known institutional investors and a wide range of the industry’s most notable builders and developers. For more information, visit IHPInc.com.