Sunstone Two Tree Expands Portfolio with New Acquisition
Plans to fully renovate all apartment units and enhance exteriors and amenities
Sunstone Two Tree, a prominent developer and operator of rental housing communities in high-growth markets, has recently made a significant acquisition. The company has secured a 200-unit apartment complex, known as the Terraza Hills community, originally constructed in 1976 and currently in need of upgrades. This property was acquired for $45 million, averaging $225,000 per unit, with plans for extensive renovations aimed at increasing both aesthetics and functionality.
Scott Maddux, President and CEO of Sunstone Two Tree, highlighted the importance of this purchase, stating, "According to CoStar, there were only 88 multifamily units delivered in 2024 to all of the East San Diego submarket, or 0.1% of the existing inventory. Furthermore, much of what does exist in the submarket is older, unrenovated product. It's critical to invest in preserving the housing stock available to families, ensuring it remains affordable for future generations." This perspective showcases the commitment of Sunstone Two Tree to improving living conditions while addressing the community's growing needs.
The renovation efforts will encompass a comprehensive upgrade for each apartment unit, including the installation of vinyl plank flooring, hard surface countertops, modern lighting fixtures, stainless steel appliances, and enhanced cabinetry. Externally, the property will feature new paint, updated exterior finishes, improved lighting, and repairs to parking areas. The landscaping will be revitalized, and new signage will improve visibility. Additionally, the company plans to enhance safety features such as new fencing, gates, and a renovated pool area. These renovations are set to commence shortly, anticipated to last approximately 24 months.
Sunstone Two Tree is strategically integrating into high-demand markets across the United States. The company also has a presence in locations like Las Vegas, Phoenix, Houston, Dallas, and Tampa. Marking its inaugural transaction in the San Diego region highlights their strategic expansion aspirations, driven primarily by the favorable supply-demand balance in this market. The particular location of the Terraza Hills community offers exceptional accessibility to downtown areas, universities, and airports, bolstered by solid fundamentals, which include strong rental occupancy rates and consistent rent growth.
About the company, Sunstone Two Tree was formed in 2023 through a merger between Sunstone Properties Trust and Two Tree Capital. This partnership seeks to leverage the strengths of both entities, focusing on rental housing in dynamic growth markets. With a robust track record in multifamily investments and a decisive mission, Sunstone Two Tree strives to protect investor capital while establishing safe, clean, and well-maintained communities for tenants. Their overarching goal is to deliver meaningful returns across various economic cycles while enhancing the quality and affordability of rental housing.
For more information, interested individuals can visit the company's official website.
Frequently Asked Questions
What is the recent acquisition made by Sunstone Two Tree?
Sunstone Two Tree acquired a 200-unit apartment complex named Terraza Hills, which is set for extensive renovations.
What are the planned renovations for the Terraza Hills community?
The renovations will include interior upgrades with modern fixtures, new exteriors, enhanced landscaping, and improved safety features.
Why is Sunstone Two Tree focusing on San Diego?
San Diego's strong rental demand, proximity to downtown, and positive market fundamentals make it an attractive location for Sunstone Two Tree's expansion.
What is the mission of Sunstone Two Tree?
Sunstone Two Tree aims to protect investor capital while creating safe and well-maintained rental communities across high-growth markets.
When are the renovations expected to begin?
The renovations for the Terraza Hills property are set to begin shortly and are projected to take approximately 24 months to complete.
