ESCONDIDO – Construction is well under way on a housing project on the downtown Escondido site of the former Palomar Health hospital, which was demolished.
Marlowe Palomar Heights by Greystar, a real estate company based in South Carolina, was originally planned by Integral Communities based in Newport Beach.
Director of Development
Greystar
The old hospital opened in 1954. Most of its functions were moved in 2012, when Palomar Health opened the $956 million Palomar Medical Center at 2185 Citracado Parkway.
Greystar took over the project in late 2021 after Integral Communities took it through permitting, said Raul Tamez, Greystar senior director of development for Southern California and Hawaii.
Tamez declined to say what Marlowe Palomar Heights will cost, but Integral Communities estimated in 2021 that it would cost more than $200 million.
As built by Greystar, Marlowe Pacific Heights is essentially the same as proposed by Integral Communities and designed by SummA Architecture based in Bonsai.
The 13.84-arce site is among the most prominent in downtown Escondido, rising from street level up a gradually sloping hill at Valley Boulevard and Grand Ave.
The project will have 258 apartments, some of which will be multi-level flats, and 162 three-story townhomes.
The project also will have 10,000 square feet of commercial space, a rooftop deck designed for a restaurant in a 75-foot-tall tower at the edge of the property.
Some of the townhomes will be the first portion of the project to be delivered, with early leasing starting this month and construction expected to be finished on the first of the apartment buildings in October.
Amenities include several pocket parks, a dog park, a coworking lounge, a fitness center, a clubhouse, and a resort-style pool that’s 75 feet by 50 feet with cabanas and an outdoor television that measures 16 feet by 26 feet.
“That’s going to be an amenity that draws people in,” Tamez said.
Monthly rents on the first of the townhomes to be completed will range from $4,440 to $5,150.
The townhomes will be a mix of sizes from 1,245 square feet to 1,155 square feet for two bedroom, 2 1/2 bathroom models with two-car garages, 1,493 square feet for those with three bedrooms, 2 1/2 bathrooms and two-car garages, 1,918 square for those with three bedrooms, a den, 2 ½ bathrooms and two-car garages, and 1,676 square feet to 2,003 square feet for those with three bedrooms, 3 1/2 bathrooms and two-car garages.
Changing Focus to Mid-Rise
Greystar has done a number of projects in San Diego County, including a $100 million, 20-story Bankers Hill apartment tower at 525 Olive St. that it built in partnership with St. Paul’s Episcopal Cathedral, which is adjacent to the apartment building.
Tamez said that the company is changing its focus because it’s become too expensive to build any more towers.
“Costs for high-rise construction have exceeded any other construction type to the point where rents cannot keep up with the level of construction costs,” Tamez said. “A lot of developers, Greystar being one of them, have put high-rise projects on hold.”
Marlowe Palomar Heights is an example of Greystar’s shift in focus from building urban towers to mid-rise projects, Tamez said.
Tamez said that Marlow Palomar Heights would likely appeal to people who like an urban setting but want more room than they’d find in downtown San Diego and surrounding neighborhoods like Bankers Hill and Little Italy.
“Escondido isn’t some sleepy suburb. It’s not a bunch of gated communities. It feels walkable, it has authenticity and character to it,” Tamez said. “I really think there are going to be a lot of families, a lot of couples.”
Greystar
FOUNDED: 1993
CEO: Bob Faith
HEADQUARTERS: Charleston, SC
BUSINESS: Real estate investment, development and management of rental housing
EMPLOYEES: 26,700+
WEBSITE: www.greystar.com
CONTACT: 843-579-9400
NOTABLE: Greystar manages and operates more than $320 billion of real estate assets in 250 markets worldwide.
