CORONA, CA—Canadian investor Tricon Capital Group Inc. has closed a $142.5 million investment to support the acquisition of a fully-entitled, large scale, infill residential master planned community located in Corona.

Tricon plans to develop and sell partially finished lots to homebuilders. One of Tricon's institutional partners has allocated nearly $97 million and an additional $46 million is allocated by two US funds associated with Tricon. The developer of the Project will be The New Home Company Inc. , an award-winning Orange County based land developer and homebuilder.

"The closing of this transaction is further evidence of the confidence that institutional investors are showing in Tricon's time-tested U.S. residential investment strategy," said David Berman, Tricon's chairman and chief executive officer. "We appreciate the opportunity to deepen our relationship with The New Home Company in the development of what we believe to be one of the best available major development sites in Southern California."

Investment Highlights:

Project represents a marquee Southern California residential land development opportunity located in Corona, California, one of the most desirable communities within the Inland Empire submarket (Riverside and San Bernardino Counties) with top rated schools and some of the highest income levels and job growth in the region .
With historically low new home community count and limited supply of tentative map approved, large scale master planned communities in the region, the Project should experience strong public homebuilder demand.
Inland Empire housing market continues to recover, with median new and resale home prices up 33% and 65% from 2009, and still 13% and 30% below 2006/2007 peak pricing levels, respectively.
Property is situated immediately west of the I-15 freeway within a valley that offers mountain views and close proximity to destination retail and dining amenities as well as three nearby 18-hole golf courses. In addition, the Project will have convenient access to major employment in Orange County, as well as Riverside and San Bernardino counties.
This transaction increases Tricon's AUM by $107.5 million or 5%, to a total of $2.2 billion.

Founded in 1988, Tricon has more than $2.2 billion of assets under management, including approximately 24,600 single-family lots, 6,100 multi-family units and a portfolio of over 4,000 U.S. single-family rental homes. New Home is a new-generation land developer and homebuilder focused on the development and sale of highly-amenitized master planned communities as well as the design, construction and sale of innovative and consumer-driven homes, in major metropolitan areas within select growth markets in California, including coastal Southern California, the San Francisco Bay area and metro Sacramento.

Instant Insights /

Tricon Capital Invests $142.5M in Master-Planned Community

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