After entitling the property for 60 age-qualified townhomes, Trumark sells the parcel to Taylor Morrison for build-out
NEWPORT BEACH, Calif. – June 10, 2013 – Just five years after its launch, the home-building arm of Trumark Companies, called Trumark Homes, has amassed an impressive pipeline of more than 2,300 residential lots under development in California.
Trumark released 60 of those lots in the affluent Southern California coastal community of Rancho Palos Verdes last week, selling the roughly 10-acre parcel to Taylor Morrison, a Scottsdale, Arizona-based homebuilder, at an undisclosed price. Trumark had acquired the land after an 18-month entitlement process completed in late May when the Rancho Palos Verdes City Council unanimously certified the developer’s environmental impact report and approved the tentative tract map.
“Trumark has been creating value by turning under-utilized infill locations into desirable residential communities for the past 25 years,” said Trumark Partner and Chief Investment Officer Jason Kliewer. “We were exceptionally drawn to this project in Rancho Palos Verdes because we love developing real estate in highly constrictive, urban areas close to job centers. It’s a challenge and there are many political and environmental hurdles, but our entitlement team is one of the best in the state and got it done in relatively short order.”
The property was purchased from First Citizens Bank in North Carolina, the fourth Real Estate Owned (REO) bank deal that Trumark has completed in the last three years.
The unimproved land is on Crestridge Road near Crenshaw Boulevard in an area dotted with age-qualified housing, an assisted-living facility and a retirement community.
To meet the institutional zoning requirements, Trumark put an age qualification on the residential units (55 and older) and the builder will offer supportive services for seniors, such as recreation, education, and health and fitness programs.
“We were excited about developing an age-qualified community because one of the demographic trends we are following is the baby boom generation, which is retiring at the rate of nearly 10,000 people per day, every day, for the next 19 years,” Kliewer said.
Recent surveys by AARP and several home-building companies indicate that 60 percent to 80 percent of boomers want to move smaller homes, when they retire.
“They’re looking for a simpler, less expensive lifestyle and many of them want to live around other active adults who share their interests,” Kliewer said. “This buyer is ready for a less complicated life and wants to be able to travel. A lock-and-leave type of residence fits their needs today.”
Tentatively called The Crestridge Villas, the new community will consist of 19 structures, most of which are split-level and two-story buildings with a variety of architectural styles and colors to create an attractive street scene on the hilltop overlooking the Palos Verdes Peninsula. The development plan includes generous open space, a security gate and a meandering path with spectacular views.
“Although the Peninsula is a highly desired area, the vast majority of the housing supply is outdated,” said Mark Higgins, senior vice president of sales and marketing for Trumark. “When the project comes to market, which is expected to be in 2014, it will be the only new age-qualified project for sale.”
About The Trumark Group of Companies
The Trumark Group of Companies, with a 25-year operating history, is a diversified real estate developer and builder with expertise in land acquisition, homebuilding, community design, entitlements and office, R&D and retail development. Since 2009, Trumark has raised more than $340 million of equity. www.trumarkco.com
Trumark Homes is a new generation homebuilder that is nimble, focused and positioned to take advantage of the recovering market. Its pipeline exceeds 2,300 lots in core urban areas of California, representing more than $1.5 billion in future revenue.www.trumarkhomes.com
Trumark Urban engages in multifamily acquisition and development in core urban neighborhoods close to jobs, transit and local businesses. Since making the strategic decision to focus on San Francisco in 2011, the new division has acquired six sites in San Francisco for mid- and high-rise condominium communities with plans in the works for more than 600 units, representing more than $640 million in future revenue. www.trumarkurban.com
Trumark Commercial, which builds, leases and sells commercial buildings, has entitled or developed approximately two million square feet of office, R&D, retail and hotel properties in the northern portion of the Golden State. www.trumarkco.com
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