Integral Communities sold the 14-acre Palomar Heights property to Greystar Property Management for $55 million, according to an SEC filing— which showed that the sale occurred in May.
Integral Communities originally bought the land from the Palomar Health district for about $18 million, and including the purchase price, put a total investment of about $34.5 million, including demolition, debt service and other expenses.
—so it realizes about $20.5 million in profit. The land was the original site of Palomar Hospital for more than 50 years.Palomar Heights development was approved by the city. Palomar Heights will include 258 multifamily rental residences, 162 for-sale townhomes and 90 age-targeted apartments. It will be anchored by a 75-foot landmark commercial building centered on Grand Avenue featuring a restaurant and sky lounge with 360-degree views of the city.
The project was approved 3-2 by the City Council in February 2021. At the time the minority on the council argued that by not requiring Integral to be part of a CFD (community facilities district) that the cost of maintaining its infrastructure would come out of the General Fund and so infrastructure costs would be spread around to all the taxpayers. They also criticized the development for having no affordable housing.
Integral had argued to the city that if it was included in the CFD and forced to include affordable housing, it would have trouble making the project pencil out.
The sale of the land does not include a parcel, also formerly owned by the hospital district, of a three-story building that is within the city’s federal opportunity zone.