Sunstone Two Tree Acquires 200-Unit Apartment Complex in San Diego

Plans to fully renovate all apartment units and enhance exteriors and amenities

WESTLAKE VILLAGE, Calif., March 31, 2025 /PRNewswire/ -- Sunstone Two Tree, a developer and operator of rental housing communities in high-growth markets throughout the United States, announced today that it has acquired a 200-unit apartment property in San Diego, California. Located on the north side of El Cajon, the Terraza Hills community was built in 1976 and is in its original condition. Sunstone Two Tree paid $45 million or $225,000 per unit for the property and plans to invest a significant amount of capital on upgrades.

"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," said Scott Maddux, President and CEO of Sunstone Two Tree. "Furthermore, much of what does exist in the submarket is older, unrenovated product. As a result, it's imperative to invest in and preserve the housing stock that's already available in the area so that families can have affordable places to live now and in the future. We are looking forward to investing in the Terraza Hills community, enhancing it with thoughtful upgrades that make it a comfortable yet attainable place to live."

As part of the renovation scope, Sunstone Two Tree will upgrade each unit interior with vinyl plank flooring, hard surface countertops, updated lighting, stainless steel appliances and new cabinetry. The exterior will receive new paint, exterior finish replacement, new lighting, parking lot repairs, landscaping and signage. The company will refence backyards, renovate parking garages and add car ports. They will also renovate the pool area and add new gates and fencing around the perimeter of the property. Renovations are set to begin in April 2025 and will take approximately 24 months to complete.

Sunstone Two Tree acquires, renovates, develops and manages rental housing communities in high-growth markets across the United States, including Las Vegas, Phoenix, Houston, Dallas, and Tampa. This marks the company's first transaction in San Diego County. It was drawn to San Diego due to its favorable supply-demand dynamic, with El Cajon specifically offering proximity to downtown, the universities and the airport. It also features strong fundamentals, including healthy rental occupancy and consistent rent growth.

For more information, visit https://sunstonetwotree.com/.

About Sunstone Two Tree

Sunstone Two Tree is a vertically integrated real estate operator and developer focused on rental housing in high growth markets throughout the United States. Sunstone Two Tree was formed in 2023 as a result of the merger between Sunstone Properties Trust, an owner, operator and fund manager founded in 2012 with deep expertise and a successful track record in multifamily investments, and Two Tree Capital, an acquirer and developer of multi-family build-to-rent (BTR) communities.

Sunstone Two Tree acquires, renovates and manages existing multifamily assets while developing dedicated single-family rental communities. Sunstone Two Tree is based in Westlake Village, CA is driven by a two-fold mission: 1) to protect investor capital and deliver compelling returns through every phase of the economic cycle and 2) to create and operate safe, clean, and well-maintained rental communities for individuals and families.

Media Contact:
McKenzie Hyde
[email protected]

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SOURCE Sunstone Two Tree