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2 | HFF
HFF is pleased to present the opportunity to acquire the
100% fee simple interest in the Royce Residences (the
“Property”), representing 13 detached homes tucked into
the groves at the 21-acre, 80-room Inn at Rancho Santa
Fe. Encompassing 7.92 acres, the Residences range in
size from 1,054 to 3,926 square feet, offering full kitchens,
fireplaces, washer/dryers, outdoor patio/lawn areas, as well
as garages and private pools within select homes. Residents
enjoy full access to the wide array of amenities The Inn at
Rancho Santa Fe has to offer, including the resort pool, spa,
fitness center, room service, housekeeping, laundry/dry
cleaning, concierge, and bell staff along with access to the
R. Roger Rowe School, within the top ranked Rancho Santa
Fe School District. With the Covenant consistently ranked as one of the wealthiest zip codes in the country, a new
owner has the opportunity to implement a full value-add
program and push rental rates in a boundless rental market.
Additionally, the Royce Residences have entitlements
available for a potential future redevelopment opportunity.
Introduction
HFF | 3
Generational Opportunity
Never previously marketed on a stand-alone basis, the Royce Residences represent a once-in-a-lifetime opportunity to acquire
13 detached homes within the historic Inn at Rancho Santa Fe, a member of the acclaimed Tribute Portfolio brand of Marriott International. Located in one of the most exclusive communities in the country, the Covenant, the Royce Residences boast exclusive access to the Rancho Santa Fe School District, along with popular shopping, dining, and entertainment options. With purposeful value-add renovations, a new owner can realize significant rent increases in a submarket where the average household income is over $178,000.
Redefining Renting
Residents within the Royce Residences benefit from unrivaled amenities within The Inn at Rancho Santa Fe, namely the swimming pool, spa, fitness center, room service, housekeeping, laundry and dry cleaning, concierge, and bell staff. The venue of choice for the Rat Pack and past Hollywood legends, The Inn is the historical crux of Rancho Santa Fe, offering a unique escape from Southern California’s most vibrant cities. Ownership of the hotel has spent an estimated $15 million in renovations since 2012, upgrading areas such as the lobby, pool, and the entertainment/wedding venue, while concurrently adding a restaurant with a world-renowned chef, a 120-option whiskey bar, and a full-service spa.
MORADA RESTAURANT
NEW FULL-SERVICE SPA
THE HUNTSMAN LOUNGE
Investment Highlights
4 | HFF
HFF | 5
RANCHO SANTA FE GOLF CLUB
PACIFIC OCEAN
VIA DE LA VALLE
LOMAS SANTA FE DR.
SOLANA BEACH
$1,768,327AVG. HOME VALUE
DEL MAR
$2,518,083AVG. HOME VALUE
ENCINITAS
$1,439,000AVG. HOME VALUE
RANCHO SANTA FE$2,542,948
AVG. HOME VALUE
R. ROGER ROWE SCHOOL
DOWNTOWNRANCHO SANTA FE
$178,337
MEDIAN HOUSHOLD INCOME
85% OWNER-OCCUPIED HOUSING
96% $1 MILLION + HOME VALUES6 | HFF
RANCHO SANTA FE GOLF CLUB
PACIFIC OCEAN
VIA DE LA VALLE
LOMAS SANTA FE DR.
SOLANA BEACH
$1,768,327AVG. HOME VALUE
DEL MAR
$2,518,083AVG. HOME VALUE
ENCINITAS
$1,439,000AVG. HOME VALUE
RANCHO SANTA FE$2,542,948
AVG. HOME VALUE
R. ROGER ROWE SCHOOL
DOWNTOWNRANCHO SANTA FE
Exciting Value-Add Possibilities
Constructed as far back as the late 1950’s, the Royce Residences are an ideal candidate to implement a full interior and exterior modernization package, transforming the mostly untouched residences with today’s modern finishes. With thoughtful upgrades on unit interiors, the Property exhibits substantial rental upside by implementing new cabinets, stainless steel appliances, laminate floors, and hard-surfaced countertops. Royce Residences’ large floorplans and inelastic demand from wealthy renters provide a solid basis for significant rent increases, exhibited by the most recent lease signed at $9,200 per month, while the average in-place rents are just over $6,300. Additionally, the Royce Residences have entitlements available for a potential future redevelopment opportunity.
Highly Sought-After Submarket With Exceptional Demographics
The Royce Residences are located within the Rancho Santa Fe submarket, widely recognized as one of the most affluent and highly educated communities in the nation. CNN Money ranks Rancho Santa Fe as having the highest percentage of million-dollar homes (96%) in the nation, with a median value in excess of $2,600,000. This area is home to exceptionally educated residents, as 36% of local residents possess post-graduate degrees, compared to 13% for San Diego, and 11% for the nation. Additionally, the population within the immediate five-mile radius encircling the property is forecasted to grow by 7.4% from 2017 to 2022, on top of 12.5% growth from 2010 to present.96%
$1 MILLION + HOME VALUES
36%
POST GRADUATE DEGREES
Renovation Opportunities
HFF | 7
Exclusive Lifestyle Location
The Royce Residences are located in the heart of the Covenant, encompassing 6,730 acres and 4,300
residents, featuring beautiful rolling topography, 68-acres of open-space areas, full-time private security
patrol, a golf course, equestrian and hiking trails, along with numerous high-end shops and restaurants within
the downtown area of Rancho Santa Fe, known as The Village. The exclusive access to a wide array of activities,
events, and a top rated school district, combined with its proximity to the Pacific Ocean, Del Mar Racetrack, Polo
Fields, and employment centers, are what set the Covenant apart. Echoing the quiet serenity of a Spanish village, the
Covenant has attracted notable current and former residents that include Bill Gates, John Moores, the Beach Boy’s Mike
Love, Bing Crosby, Howard Hughes, Jenny Craig, and Phil Mickelson.
DEL MAR BEACHDEL MAR RACE TRACK RANCHO SANTA FE GOLF CLUB
THE INN GOLFING HORSEBACK RIDING DINING ENTERTAINMENT
PAC
IFIC O
CE
AN
FULL-SERVICE SPA
8 | HFF8 | HFF
RANCHO SANTA FE GOLF CLUB
T H E C O V E N A N T I S O N E O F T H E F I R S T P L A N N E D C O M M U N I T I E S I N T H E S TAT E O F C A L I F O R N I A A N D I S
D E S I G N AT E D A S A S TAT E H I S TO R I C A L L A N D M A R K
The Covenant of Rancho Santa Fe
HFF | 9
TRENT JEMMETTSenior Associatetjemmett@hfflp.comT. 858.812.2363CA License #01982473
HUNTER COMBS Senior Directorhcombs@hfflp.comT. 858.812.2346CA License #01771662
Investment Advisors
TIM WRIGHTSenior Managing Directortwright@hfflp.comT. 858.812.2341CA License #00947194
Debt Advisor
HFF San Diego 4350 La Jolla Village Dr., Ste 450
P: 858.552.7690 F: 858.552.7695
hfflp.com
HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders,
officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate.
Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim
any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
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