Vancouver-based residential developer Intracorp has started demolition work to replace an office site in Old Town Tustin with 40 townhomes.
It’s the first development project for Intracorp in Tustin, though it previously sold a development site alongside the Santa Ana (5) Freeway in the city to Taylor Morrison, which is now building out Vintage at Old Town Tustin, totaling 140 homes.
Intracorp’s for-sale townhomes—which includes paired homes with a handful of detached units—will start in the $900,000s, according to Brad Perozzi, president of Intracorp Southern California, which has its offices in Newport Beach.
The company, among the most active developers of for-sale homes in infill sites around John Wayne Airport the past few years, has partnered with Resmark Companies for the Tustin project.
The homes will range in size from 1,965 to 2,004 square feet, on the larger side for new townhome projects in Orange County, with three or four bedroom configurations and two-car garages.
“We’ve been pursuing this project for about a year and a half,” Perozzi told the Business Journal. “The original plan for the site was a senior facility with age-related medical services, but when COVID-19 hit, that plan failed.
“Brokers reached out to us regarding a residential play, which was a great opportunity for us.”
Intracorp closed on the 2.1-acre site in March for roughly $8.3 million. It purchased the site from Santa Ana-based Positive Investments, which operated the 44,948-square-foot office complex that is now being demolished to make way for the townhomes.
Intracorp received entitlements for the residential conversion during escrow, property records note. It expects to deliver the homes by the end of the year.
The site is at 17802 Irvine Blvd., next to Columbus Tustin Park and a few blocks east of the Costa Mesa (55) Freeway.
Each unit will have a rooftop deck or enclosed patio, with community amenities including a central park with barbecue pits and a large outdoor fireplace.
The Old Town Tustin project is the second project currently in the works for Intracorp in Orange County.
Intracorp hopes to deliver its first rental project in the Irvine Business Complex this fall, with construction currently underway on Aurum, a 178-unit apartment development at 2055 Main St.
Units will average around 830 square feet, with average rents around $3 per square foot, or roughly $2,500 per month on average. Aurum includes studios, one- and two-bedroom units.
Though recent interest rate hikes and banking industry turmoil has troubled the financing waters for real estate builders, Intracorp notes strong demand from buyers has the company scouting additional opportunities in the county.
“There’s such a lack of new product in all of Southern California, so we’d love to build more,” Perozzi said.
Outside of OC, Intracorp recently kicked off sales for a 96-home community in Claremont, dubbed Docente.
“We’ve had nine sales there over the past seven weeks,” Perozzi said. “The response has been great.”