SOLANA BEACH – HP Investors, based in Solana Beach, is spinning off its Northern California operations to focus on San Diego, where it has several projects planned or under construction.
“As we’re growing and the market’s changing and our investment philosophy is changing accordingly, we decided to double-down on our efforts in Southern California rather than continuing to expand in Northern California, where there’s a bit more turbulence,” said Sumeet Parekh, managing partner of HP Investors.
Managing Partner
HP Investors
“It’s been a good run. The Bay Area was good to us for a while. As the market changes, we have to make adjustments,” Parekh said. “We’ve got so many things happening in and around Southern California, to draw our attention up to the Bay Area didn’t seem like a good use of our time.”
Since its founding in 2010 by Sumeet and Harki Parekh, HP Investors has grown to have a real estate portfolio of about $1 billion with investments in retail, office, mixed-use, multifamily and hospitality projects throughout San Diego and Los Angeles Counties.
“We’ve just kind of grown organically,” Sumeet Parekh said. “We love the Southern California market, especially San Diego.”
The firm expanded into the Bay Area in 2014 with partner Isaac Abid to form HP Investors North, which has become Lakeside Group, based in Oakland.
“Over the last couple of years, we’ve been less interested in trying to grow up there and it’s a little bit of an opportunity for him (Abid) to grow his own platform and focus up there,” Parekh said. “Isaac has done a great job helping grown HP Investors over the years and remains committed in his investments in Oakland.”
HP Investors will remain an investor, but will divest its interests in the Northern California portfolio over time, according to Parekh.
The firm also has offices in Los Angeles and in the Philippines.
Project Portfolio
Among the firm’s San Diego County investments are the former Boomers site in Kearny Mesa, where construction is under way on a new. 18,000-square-foot Mazda dealership, scheduled for completion in the first quarter of 2025.
HP Investors, in partnership with Frontera Real Estate Investments, is also planning to break ground in the fourth quarter of 2024 on a site next to the Mazda dealership for a $30 million self-storage building of 160,000 square feet.
“We’re really excited about that,” Parekh said.
In partnership with Foulger Pratt, HP Investors is building a $60 million apartment complex at 2260 El Cajon Blvd. that will have 125 apartments.
The firm also owns the Del Sur site where Affirmed Housing is building a $100 million project, Symphony, with 171 apartments and 8,768 square feet of retail space. HP Investors has ground-leased the site to Affirmed Housing.
Its North County investments include the former North County Times building in Oceanside, which it renovated into 50,000 square feet of retail, office and showroom space that it is in the process of leasing.
Beyond San Diego County, HP Investors is using shipping containers to build a $27 million hotel, Reset, with 65 rooms on a 180-acre site in Joshua Tree.
“It’s going to be a really unique product,” Parekh said. “That market attracts people from San Diego, Los Angeles, Las Vegas and Arizona. All that’s there is mostly Airbnbs and kind of low-rent motels.”
Because the Joshua Tree property is so expansive, “We’re starting to look at what additional phases and amenities we want to add to the property.”
HP Investors
FOUNDED: 2010
HEADQUARTERS: Solana Beach
MANAGING PARTNER: Sumeet Parekh
BUSINESS: real estate investment
EMPLOYEES: 20
WEBSITE: www.hpinvestors.com
CONTACT: 858-271-6701; info@hpinvestors.com
NOTABLE: HP Investors has a real estate portfolio valued at about $1 billion
