TUSTIN — A $175 million affordable housing project is coming to Tustin Legacy.
The Irvine Company and Roseville-based USA Properties Fund have broken ground on Terracina at Tustin Legacy, a 338-unit apartment community that officials say will provide much-needed housing for lower-income families in one of Orange County’s most expensive housing markets.
The project will include two four-story residential buildings wrapped around a parking structure, USA Properties President Geoff Brown told the Business Journal.
Leasing will begin in the second half of 2028 while construction is expected to be completed in 2029, officials said.
“[The project] checks so many boxes, and the partnership with the Irvine Company will bring more quality, affordable homes to a community where there is a severe housing shortage,” Brown said.
About 55 people attended a groundbreaking held on Aug. 6.
Terracina is USA Properties’ seventh affordable housing development in Orange County but its first aimed at families. The company’s previous six projects in the county were for residents 55 and older.
Redeveloping Former Military Site
The Terracina project comes as Tustin continues transforming the former Marine Corps Air Station into a master planned, mixed-use community of homes, offices, shops, parks and schools.
More than 9,000 homes are planned at Tustin Legacy, including affordable apartments, market-rate rentals, townhomes and single-family houses.
Several major projects are either under construction or planned throughout the former military site, city planning records show.
An Irvine Company spokesman told the Business Journal the 338-unit Terracina is part of the 1,300 unit community the company is building in Tustin Legacy. The other apartments are market-rate.
Sean Harris, president of Irvine Company Apartment Communities, said in a press release that they are “proud to partner with USA Properties to help realize the city of Tustin’s vision for a full range of quality housing within Tustin Legacy.”
Advantech North America is also building a six-story North American headquarters at Tustin Legacy, while Mariners Church is planning a 33,000-square-foot church that is currently in the entitlement process.
The company has previously participated in other large redevelopment projects, including the former Fort Ord military base in Monterey County and the former rail yards in downtown Sacramento.
“You’re two, three years out, you’re not going to recognize that area,” Brown said of Tustin Legacy.
Affordable Housing
The project is significant given that Orange County continues struggling with a shortage of affordable housing.
About 119,000 low-income households in the county do not have access to an affordable home, according to the California Housing Partnership, a nonprofit that works with government agencies and affordable housing organizations.
The joint venture hopes to change that.
USA Properties officials said that Terracina is targeting households earning between 30% and 60% of Orange County’s area median income.
That means for a family of four, the current income limit is about $55,830 at the 30% level and just over $111,600 at the 60% level, according to the latest HUD data.
Officials said monthly rents will start at $1,014 for a one-bedroom apartment for households at the 30% income level and go up to $2,856 for a three-bedroom apartment at the 60% level.
Those income limits and rents are expected to increase by the time leasing starts in 2028.
The rents are significantly below market-rate apartments in Tustin.
RentCafe reported the average monthly apartment rent in Tustin at $2,761. A one-bedroom apartment averages just over $2,000 a month, while a three-bedroom apartment averages $3,880.
At about $518,000 per apartment, Terracina’s per-unit cost falls within the range of other recent Orange County affordable housing developments.
The 60-unit Cartwright Family Apartments in Irvine cost about $43 million, or roughly $717,000 per unit.
By comparison, USA Properties recently completed The Orion, a 166-unit affordable senior housing community in Orange, costing $63.6 million, or about $383,000 per apartment.
“The units are bigger,” Brown said of Terracina. “That was a senior deal versus family.”
The Orion also has surface parking, while Terracina will have a parking structure, which Brown said adds to the development cost.
J.P. Morgan Community Development Banking is helping finance the Terracina project.
On Aug. 3, JPMorgan Chase unveiled a plan to spend $750 billion over the next decade to improve homeownership opportunities for Americans.
The companies did not provide a full breakdown of the project’s funding sources in the announcement.
A Closer Look at Terracina
Terracina will have 160 one-bedroom, 94 two-bedroom and 84 three-bedroom apartments, Brown said.
The project will also include a clubhouse, fitness center, game room, resident resource room, swimming pool and barbecue area. About 430 parking spaces are also planned, along with several dozen electric vehicle chargers.
USA Properties officials said the location will allow many residents to live closer to jobs, shopping, and other services, rather than commuting from less expensive areas on the outskirts.
The development is near The District at Tustin Legacy and retailers including Costco, Target, Walmart and Whole Foods Market. Schools, public transportation and Veterans Sports Park are also nearby.
“Terracina at Tustin Legacy offers a unique opportunity to develop an affordable apartment community in a historic location that is transforming into a vibrant district,” Brown said.
Brown said USA Properties also provides services in their affordable communities, including financial counseling and after-school programs.
Residents can apply for a scholarship fund named after Brown’s father, who founded the company that provides money for college, trade school and youth sports scholarships.
Brown said the fund has raised more than $2 million over the past decade.
“Just because they’re in an affordable community growing up doesn’t mean they’re always going to be there,” Brown said.
