FUND III, LLC
Continental East Development (CED) purchased the + 19-acre site from Central Pacific Bank of Hawaii in 2010. CED recognized the site as an attractive development opportunity due to its ideal proximity to Moreno Valley College, Lake Perris Recreation Area, and large employment centers. Completing the purchase was yet another example of CED’s ability to identify, acquire and develop undervalued properties with long-term investment goals of creating profitable opportunities for our investors.
Changing Market Conditions, Re-Entitlements & Plan Amendments
The City of Moreno Valley Planning Department largely targets the Health and Wellness Industry. City officials approved and continue to propagate substantial expansion to meet the current and future needs for the residents of Moreno Valley and surrounding market areas. Moreno Valley is home to (2) major Medical Campuses; Kaiser Permanente Medical Center and Riverside University Health Systems Medical Center. The expansion of medical services has created more local jobs and an increased need for Moreno Valley to provide new residential housing and retail services.
Moreno Valley is located between the I-215 and I-60 freeway transportation corridors. The city is one of the fastest-growing in the country for industrial and tilt-up distribution projects due to its proximity to Los Angeles and Long Beach harbors, March Air Force base, and direct access to cross-country trucking routes. The “big box” distribution center construction boom has also been a primary driver of the increase in jobs in the area, resulting in extremely high demand for nearby housing.
Initial approvals for the entire +19-acre site consisted of developing 227 market-rate condo units. However, after working with the City of Moreno Valley, neighbors, and surrounding schools, CED listened and obtained planning approval to re-entitle the entire site.
From the onset of actual new site construction, CED started receiving requests from residents, representatives from the City of Moreno Valley, and representatives from Moreno Valley Community College. They asked CED to consider modifying the approved development plans to build a neighborhood retail center to serve the new units, surrounding neighborhoods, and adjacent college and elementary schools. Based on the positive feedback from the community, CED authorized new independent market studies which validated the following:
A new master plan comprised of two phases of multifamily units and for-rent duplexes would better satisfy the area’s demand for housing.
A third phase comprised of + – 21,000 square foot, 13-unit neighborhood commercial and retail center would be an ideal product to serve both multifamily phases and surrounding community/ schools.
The re-entitlement process included amending the land use designation for the +- 2.3-acre corner parcel from High-Density Residential to Neighborhood Commercial. In addition, it changes the land use designation for the second phase +- 8.4-acre multifamily site from High-Density Residential to Medium Density Residential to construct multifamily housing with duplexes.
In March 2018, Continental East Fund III presented the following project amendments to the Moreno Valley City Council:
General Plan Amendment
Specific Plan Amendment
Change of Zone
Plot Plan approval for (112) unit apartment project
Tentative Parcel Map 37514
Phase II received unanimous City Council approval.
CED re-recorded the parcel maps and obtained new entitlements to construct the brand-new, master-planned mixed-use development. The site transitioned from 227 approved condo units into three new parcels and a backbone street defined by the following:
New Mixed-Use Master Plan
Phase I: 125 market-rate apartments, carriage units, recreational clubhouse, and associated amenities set on 7.0 acres (COMPLETED).
Phase II: 112 market-rate apartments and duplexes, recreational clubhouse, and associated amenities set on 8.4 acres.
Phase III: +-21,000 sq. ft. Neighborhood Retail and Commercial Center: 13 units set on 2.3 acres.
Lydia’s Way: Private backbone street connecting the other three parcels with pavers, planters, and street lighting.
Project Status – Phase I
Continental Villages Phase I was completed in July 2021 and sold to FPA Multifamily. The project stabilized nine months ahead of schedule, demonstrating the incredible demand and absorption in the city of Moreno Valley. The project sold $35 Million for one of the area’s highest market comps to date.
Project Status – Phase II
Continental Villages Phase II obtained its entitlements in 2018 and broke ground on July 13, 2022. The project’s construction is scheduled to commence over the next two years, with an expected delivery of Summer 2024.
Project Status – Phase III
Continental Villages Phase III obtained its entitlements in 2019 and simultaneously broke ground along with Phase II on July 13, 2022. The project’s construction will span over the following two years, with an expected delivery of Summer 2024.