Newport Beach-based developer FountainGlen Properties LLC plans to break ground in the fall on two senior apartment projects totaling $43.4 million.
The Fountains at Huntington Beach is a planned 260,000-square-foot, 271-unit, $25 million project. The eight three-story buildings are set to be built at Main Street and Clay Avenue near the SeaCliff shopping center, which is undergoing renovation.
The Fountains at Laguna Niguel, on Camino las Padres Avenue, are set to be a 187,000-square-foot, 190-unit, $18.4 million project. Built on a ridge overlooking the San Diego (I-5) Freeway and Golden Lantern Avenue, the complex is set to consist of two three-story buildings.
Both projects are expected to break ground in October and be available for occupancy in 2002, according to Curt Miller, senior vice president of development at FountainGlen. Miller would not specify rents, but said they would be set at market rate.
FountainGlen formed last year as part of the liquidation of Pacific Gulf Properties Inc.
“We held on to the active senior portion of the business,” Miller said.
As part of the liquidation of the Newport Beach-based real estate investment trust, FountainGlen acquired Pacific Gulf’s senior housing assets, its corporate office building and name.
The company has senior apartments in Anaheim, Temecula, Rancho Santa Margarita, Laguna Woods, Riverside and two in Escondido. Two more are in the pipeline for Pasadena and Sacramento.
Irvine-based W.L. Butler is the builder for the Huntington Beach development. FountainGlen has not named a builder for the Laguna Niguel project. Irvine-based James Mickartz Architect designed both projects.
While still operating as Pacific Gulf, the company paid $3.9 million to Walnut-based Shea Homes for nearly 5.5 acres of land in Laguna Niguel.
Also last year, FountainGlen bought the 8.3-acre Huntington Beach property from American Housing Partners, which had bought it from Shea Properties, according to Miller.
“It was raw, undeveloped land in the heart of the SeaCliff area of Huntington Beach, an up-and-coming area,” said Miller.
Both the Huntington Beach and the Laguna Niguel projects are active senior apartment complexes.
“Fifty-five and better, we call it,” Miller said. “But this is not assisted living. We don’t do that.”
Miller added that the projects have amenities tailored to its target demographic.
“All of the buildings are served by elevators. It’s not a walk-up. It has interior corridors, more like a hotel than an apartment complex,” he said.
Both projects have pools, clubhouses, libraries and fitness centers. Additional to the Huntington Beach project are horseshoe pits, putting greens and a croquet field.
“The 55 and better, we think it’s a real niche as baby boomers age into this age group,” Miller said. “We’ve found there’s strong demand for these apartments.”
The communities are quiet, according to Miller.
“These are people who don’t want to deal with kids,” he said. “They are typically 72- to 75-years-old. Most are women, widows, who are looking to downsize.”
More than half still work, he pointed out: “These aren’t people being subsidized.”
“Generally, the tenants are looking in a particular area where they are moving closer to their children or grandchildren,” Miller said. n
