Recently hitting the market with an asking price of $5.2 million, or $429,752 per acre, a vacant lot could soon provide additional housing for Rosamond residents. According to an offering memorandum obtained by The Registry, the redevelopment site is currently entitled with a 248-unit residential building.
Located at 2301 Sierra Highway on 12.1 acres, the site of the soon-to-be Sierra Creek Apartments is currently owned by Pasadena-based real estate investment company Camre Holdings. Public records show that the company purchased the site in 2018 for an undisclosed amount.
Now, entitled with construction drawings in the third round of review, the redevelopment site would offer 224 two-bedroom apartments and 24 three-bedroom apartments with rent ranging from $2,250 per month to $2,475 per month, according to the offering memorandum.
In addition, the property would include fully upgraded units with community amenities including a 24-hour recreational fitness center, business center, a clubhouse, an outdoor courtyard, nearby grilling areas and a pool.
According to the offering memorandum the project likely would cost approximately $69.8 million to build and provide investors with a $25.28 million net profit in the first year.
“Sierra Creek, is a shovel-ready, market-rate planned apartment community for 248 units. The property is located within an Opportunity Zone and serves a community severely undersupplied with new, high-quality for-rent housing. This project meets that very need,” said Justin Esayian, senior vice president with the Hoffman Company, which is listing the property.
Located in the Antelope Valley, also known as “Aerospace Valley,” the redevelopment site is in close proximity to five aviation airports, including the Mojave Air and Space Port and the Palmdale Regional Airport. With transportation through nearby State Roads 14 and 15 as well as Interstate 5, future tenants will also have easy access to nearby retail and business parks, such as Freeway Business Center, Palmdale Trade and Commerce Center and Challenger Business Park.
The site is just 1.5 miles from nearby retail, including Starbucks, Albertsons, Rite Aid, California Bank Trust and more with additional shopping 12 miles away in Lancaster. Also nearby are the area’s top employers, including Northrop Grunman, Edwards Airforce Base, Antelope Valley Hospital, Lockheed Martin, Lancaster, among others.
While many employment opportunities are available in the Antelope Valley, the offering memorandum shows the area is in need of additional housing. As of 2021, Rosamond is home to approximately 20,851 people and has seen slight but progressive growth each year since 2010, when less than 18,000 people resided in Rosamond.
While demand for housing in the region heightens, rents also have increased. Since 2016, rental rates in the region have grown nearly 46 percent. In the same time period, rental rates in Los Angeles grew just 10 percent. According to the offering memorandum, rental rates in the Antelope Valley range from approximately $1,845 at The Crossings, a 78-unit apartment building in Rosamond to $2,465 per month at The Arches, a 144-unit building in Palmdale.
“Outsized demand is expected to come from the huge military and contractor presence throughout the Antelope Valley. Edwards Air Force Base is home to 10,000+ enlisted personnel, their families and 8,000+ civilian employees. The base only has 741 homes on base. Thousands of workers are van pooling to work, commuting 30 miles, or some greater than 60 miles to get to work. And, the Base supports its enlisted members with sizable housing stipends so there is a ready and willing renter pool in desperate need of new for-rent housing. There is no new housing supply and a huge demand,” Esayian said.
