Lennar, the region's largest home builder has acquired a huge piece of land alongside Interstate 15 in the San Diego community of Rancho Peñasquitos and is preparing to build 324 single- and multi-family homes for middle-class families.
Lennar Homes of California bought the 29.93-acre parcel at 10955 Carmel Mountain Rd. from Atlantic Pacific Companies in early February for $52.14 million, according to information provided by the county assessor's office. The transaction was disclosed by the buyer's representative, Cushman & Wakefield, on March 21.
After a four-year entitlement process, Lennar is looking forward to creating more homes in a central part of San Diego, said Kevin Nolen, a director with Cushman & Wakefield.
The new homes, some of which will be completed by the end of 2020, are said to be designed for entry-level buyers, although prices are not being disclosed. The for-sale residences will range in size from 1,324 square feet to 2,034 square feet, and will have two to four bedrooms. There will be 99 single-family homes, 105 triplex homes and 120 townhouses.
"This new community will allow residents to own homes in the community they serve, while also offering mortgage and lending options with a wide variety of programs for first-time homebuyers," Nolen said.
Lennar's Peñasquitos property accounts for around three-quarters of a bigger, 41.5-acre workforce housing development known as Pacific Village, which was approved by San Diego's City Council one year ago. Lennar and Atlantic Pacific were partners on the project, although the latter owned all of the land until last month.
In total, the Pacific Village development calls for 601 residences spread across the southern parcel now owned by Lennar, and the smaller, northern parcel still owned by Atlantic Pacific.
Lennar is handling all of Pacific Village's infrastructure needs, although Atlantic Pacific, which specializes in rentals, will build the 277 apartments on its 11-acre site.
Pacific Village replaces the now-demolished, 332-unit Penasquitos Village apartment complex at the northwest corner of the 56 Freeway and Interstate 15.
The previous complex was home to roughly 200 Section 8 recipients. The developers' covenant with the city required that they provide relocation assistance to, and cover moving expenses for, the residents who were receiving federal rental assistance.
The real estate firms also committed to providing 115 subsidized, low-rent units. Sixty of the apartments at Pacific Village will be subsidized for low-income households. The other 55 subsidized apartments will be offsite at other projects owned by the developers.
The project did not originally include subsidized housing, but organized labor advocates successfully lobbied for several concessions that were only finalized in the days before Pacific Village went before the City Council in March of 2018.
In addition, Lennar and Atlantic Pacific will make $10 million worth of community and infrastructure improvements. The enhancements include updated sidewalks and landscaping, and a sound wall along Interstate 15. There will also be a new bike lane along Carmel Mountain Road and new traffic signals along Carmel Mountain Drive.
