San Diego's rental community is set for a transformation as Sunstone Two Tree, known for developing rental spaces in burgeoning markets across the country, has finalized the purchase of a hefty 200-unit apartment complex in El Cajon. The buyer, Sunstone Two Tree Acquisitions LLC, shelled out $45 million—that's $225,000 per apartment—for the Terraza Hills property, untouched since its original creation back in 1976, and is now gearing up to pump significant capital into revamping the aged community, revealed Sunstone Two Tree's recent announcement.
Yielding to the sparse injection of new multifamily units into East San Diego's market, a mere 88 units were introduced in 2024, according to CoStar. Scott Maddux, President and CEO of Sunstone Two Tree, stressed the urgency to renew existing housing stocks in the area, voicing, "As a result, it’s imperative to invest in and preserve the housing stock that’s already available in the area so that families can have affordable places to live now and in the future," the commitment pointing towards the betterment of local living conditions with a mix of contemporary enhancements without pricing out the current demographic, as per Sunstone Two Tree.
On the details front, comprehensive upgrades are for Terraza Hills following the takeover, with planned interior modernizations including vinyl plank flooring, hard surface countertops, advanced lighting setups, stainless steel appliances, and fresh cabinetry, detailed in the Sunstone Two Tree's announcement. Furthermore, exterior amendments are also charted out, ranging from a new coat of paint to the introduction of updated lighting, the refurbishment of parking spaces, allied with improvements in landscaping and signage, Sunstone Two Tree aims to refine the community's overall aesthetic and functionality.
The transaction, facilitated by Northmarq's hard-charging San Diego Multifamily Investment Sales team—comprising Tyler Sinks, Ed Rosen, and John Chu—was not just a routine deal; it was a gauge of investor confidence in the San Diego County, the sale illustrating an unabated appetite for apartment investment opportunities despite economic oscillations, a point brought forward by Sinks in a press release hosted by Northmarq, who stated, "Despite the recent economic volatility, San Diego apartments remain a reliable and highly sought-after investment class." The community amenities, such as a swimming pool, laundry facilities, secured access, and garage parking, along with vigilant on-call maintenance and the presence of on-site management, contribute to the appeal. At the same time, residents benefit from a smorgasbord of conveniences ranging from quick drives to local dining and shopping venues and even leisurely access to the nearby San Vicente Freeway.
