A long-awaited housing project in the Westcliff area of Newport Beach is moving ahead under a modified ownership structure, following a recent financing deal.
Plans to redevelop the Mariner’s Square apartment site along Irvine Avenue have been in the works for almost three years after Irvine-based homebuilder Melia Homes bought the 5.8-acre site, a former apartment complex run by Irvine Co.
At the end of 2019, Melia sold the development site, expected to hold 92 homes in a mix of townhomes and paired homes, to Vancouver-based Intracorp Homes and Walnut’s Shea Homes.
The deal was for a reported $58 million, or some $630,000 per unit.
The high per-unit price reflects the location of the project, one of the largest for-sale housing developments proposed for that part of Newport Beach in years.
The site is on the Newport Beach side of Irvine Boulevard, which divides the city from Eastside Costa Mesa. It’s next to Mariners Elementary School, and a short walk to numerous shops, medical facilities and eateries along Westcliff Drive, including Irvine Co.’s Westcliff Plaza.
IHP’s Investment
Infrastructure work is underway at the site, which has been rebranded as Mariner Shores.
Intracorp, which operates locally out of Newport Beach, recently partnered with Newport Beach-based IHP Capital Partners for its portion of the project.
IHP, which provides equity capital to for-sale residential housing developments, is paying $20 million to help finance Intracorp’s nearly 1.3-acre portion of the site, which will be called The Isle.
Intracorp will build 36 townhomes with prices starting in the $1 million range, while Shea will build 56 larger paired homes, called The Cay.
Intracorp’s townhomes will range in size from 1,675 to 1,890 square feet with two to four bedrooms in a “contemporary farmhouse design,” according to Rick Puffer, vice president of development for Intracorp’s Newport Beach office.
“Opportunities for new homes have been few and far between in Newport Beach over the past several years and this community will offer attached housing at a price point that is competitive to older existing homes in the surrounding neighborhoods,” said IHP Senior Vice President Jeff Enes.
Construction is expected to wrap by the second quarter of next year, with sales beginning near the start of the year.
“Newport Beach is a strong real estate market that’s performed well in all market cycles, and has some of the highest paying jobs in the county,” Puffer said. “We are excited to bring this project forward for young professionals, move down buyers and other area residents.”
Growing Portfolio
Elsewhere in Orange County, Intracorp is planning a 178-unit apartment project at 2055 Main St. in Irvine, about a mile from John Wayne Airport.
LBA Realty of Irvine sold the 2.2-acre site for $13.1 million about a year ago.
Also under construction is Amplifi, a 290-unit luxury apartment project in downtown Fullerton that’s expected to wrap next year.
The Irvine Business Complex represents the bulk of Intracorp’s local portfolio, including three notable townhome projects: the 137-unit MDL community; 39-unit LUX; and 71-unit C2E.
Last week’s print edition of the Business Journal reported on Intracorp’s purchase of a vacant JCPenney store at The Village at Orange shopping center. Apartments are expected at the site.
