Rancho Mission Viejo LLC has announced the builders who will be selling the next set of homes at its massive development under way in South Orange County.
The master developer of the Rancho Mission Viejo community said in late June that six builders will construct 522 homes at the next phase of its Esencia village. Models for the homes, which will be a mix of age-restricted and all-ages offerings, are scheduled to open this fall.
Irvine-based CalAtlantic Group Inc. and Del Webb Homes, the active-adult community arm of Atlanta-based Pulte Group Inc., are building homes for people 55 and older.
Scottsdale, Ariz.-based Meritage Homes, Irvine-based MBK Homes, Costa Mesa-based Warmington Residential, and Newport Beach-based William Lyon Homes will build the homes for all age ranges at the next phase of Esencia.
Two additional Orange County-based builders, TRI Pointe Group Inc. in Irvine and New Home Co. in Aliso Viejo, have indicated they plan to be part of upcoming phases of the Rancho Mission Viejo project, but weren’t listed by the developer as being among the initial group of builders of the new collection of homes.
Esencia will hold 2,537 homes when it’s completed. The initial phase of development, which opened last year, has homes priced from the high $400,000s to over $1 million.
Rancho Mission Viejo ultimately will have close to 14,000 homes and about 5 million square feet of commercial space.
Rapid Expansion
RapidScale, an Irvine-based technology company that provides cloud computing services to corporate customers, is the first new tenant announced for the Intersect campus since the multibuilding property’s sale last year.
The company said it’s moving its headquarters from a Spectrum-area office to Intersect, the midrise office campus at the intersection of Main Street and Von Karman Avenue about a mile from John Wayne Airport.
The campus, previously known as Quintana, was rebranded following its $121.5 million sale last summer to a venture between Houston-based Hines Interests LP and Pacific Investment Management Co. in Newport Beach.
The new ownership has been upgrading the largely vacant property since the sale with a variety of creative-office elements, outdoor amenities and other features.
RapidScale’s new space at the 17872 Gillette Ave. building is more than twice the size of its prior offices, which took up close to 7,600 square feet at the 100 Pacifica building in the Spectrum, according to CoStar Group Inc. records.
“Our new office exemplifies the massive growth we’ve experienced over the past three years and speaks to the confidence our investors have in the business,” co-founder and Chief Executive Randy Jeter said in a statement.
RapidScale said it has averaged 160% annual growth over the past three years.
Record Low
A 92-unit apartment complex in Tustin has sold at the lowest capitalization rate reported for a local multifamily property in over two years.
An Irvine-based investor recently closed on Winston Park Apartments, a 23-building, garden-style complex on Bryan Avenue a few blocks from Tustin City Hall.
The building changed hands for $28 million, or a little more than $304,000 per unit, according to Morgan Skenderian Investment Real Estate Group, whose Peter Gillin represented the seller in the deal: Orange-based Great Western American Corp.
The buyer, listed in property records as Winston Park Apartments LLC, was described as a private 1031-exchange acquirer.
The capitalization rate for the deal was reported at 2.3%. Only three apartment deals reported since the start of 2015 have had cap rates of 3% or less, and last month’s transaction was the lowest of the three, according to CoStar records.
Winston Park was built in 1963 and has one- and two-bedroom units.
Buena Park Buy
Irvine-based Greenlaw Partners has paid $25.5 million for an industrial building in Buena Park.
The real estate investor paid about $117 per square foot for 6280 Artesia Blvd., a 218,640-square-foot building a few blocks south of the Santa Ana (I-5) Freeway.
The building is leased to Cypress-based Exemplis Corp., which makes office chairs under the SitOnIt and Ideon brand names.
It is the largest freestanding industrial sale in Orange County so far this year, according to CBRE Group Inc., whose Josh Bonwell, Rick McGeagh and Steve Young represented Greenlaw Partners in the deal.
The seller was SHA Enterprises Inc., a private owner who was advised by Rick Hertel of Corporate Real Estate Services.
