Multifamily developer and operator Sunstone Two Tree has expanded into San Diego with the $45 million acquisition of a 200-unit apartment property on the north side of El Cajon. The 1976 Terraza Hills community is in its original condition, and Sunstone Two Tree plans to invest a significant amount of capital on upgrades.
Scott Maddux, president and CEO of Sunstone Two Tree, says, “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. 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.”
Set to begin this month, Sunstone Two Tree will upgrade each unit interior with vinyl plank flooring, hard surface countertops, updated lighting, stainless steel appliances, and new cabinetry. The property’s exterior will have new paint, exterior finish replacement, new lighting, parking lot repairs, landscaping, and signage.
Residents will also enjoy re-fenced backyards, renovated parking garages, and new carports. The pool area will be renovated, and new gates and fencing will be added around the perimeter of the property. The renovations will take approximately 24 months to complete.
Sunstone Two Tree acquires, renovates, develops, and manages rental housing communities in high-growth markets including Las Vegas, Phoenix, Houston, Dallas, and Tampa, Florida. The firm was drawn to San Diego due to its favorable supply-demand dynamic, with El Cajon offering proximity to downtown, the universities, and the airport.
