Atlas West Group Expands Into For-Sale Housing Amid Crisis
Atlas West Group (AWG), a prominent San Diego–based real estate development and investment firm, has announced a major strategic expansion into the for-sale residential market. Known for its extensive footprint in multifamily development and accessory dwelling unit (ADU) projects, AWG will now broaden its portfolio to include single-family homes, townhomes, and condominiums. The move is designed to help meet Southern California’s critical shortage of attainable, high-quality housing and to support prospective homebuyers who have been priced out of traditional paths to homeownership.
For years, Southern California has faced one of the most severe housing affordability crises in the nation, fueled by rising costs, limited inventory, and slow construction pipelines. Despite strong demand, the availability of new starter homes has nearly vanished, leaving many would-be buyers with few options in a market dominated by luxury developments and aging resale inventory. AWG’s expansion aims to directly address this gap by developing modern, functional homes designed specifically for young families, workforce professionals, and first-time purchasers.
Responding to Market Realities
“The region’s housing needs continue to evolve, and so are we,” said Daniel Shkolnik, CEO of Atlas West Group. “We’re proud of the impact we’ve made through ADUs and multifamily housing, but we now see a clear need — and a significant opportunity — to help more people buy homes they can actually afford.”
Over the past several years, AWG has built a reputation for transforming underutilized land into vibrant residential communities. By focusing on infill redevelopment and thoughtful urban planning, the company has contributed thousands of beds to Southern California’s housing supply. However, shifting economic pressures made it increasingly evident that the market required a new approach.
High interest rates that remained elevated far longer than early forecasts predicted, coupled with inflation that drove up construction materials and labor costs, reshaped the economics of multifamily rentals. At the same time, a surge in multifamily development created greater competition among apartment operators, while demand for entry-level ownership opportunities continued to soar unmet.
Meanwhile, median home prices across Southern California reached unprecedented levels. In San Diego, median pricing hovered around $1 million — often for older homes in need of significant renovation. The combination of limited inventory, high prices, and intense bidding activity sidelined many qualified buyers, especially those earning near the region’s median income.
“As we analyzed the environment, we saw a complete vacuum for starter homes,” Shkolnik explained. “For roughly the same price as buying and renovating an aging property, buyers can now own brand-new construction that reflects today’s lifestyle demands, energy standards, and design expectations. It’s a win for families and a win for cities striving to increase attainable housing.”
Delivering Modern, Attainable Homes
To support this new initiative, AWG is raising capital for its for-sale housing division and plans an initial investment exceeding $100 million. The firm will focus on creating well-designed, move-in-ready homes in desirable communities across Southern California, prioritizing quality finishes, efficient layouts, smart-home technology, and sustainable building practices.
The company’s strategy centers around homes that offer real long-term value rather than speculative luxury development. AWG believes that homeownership remains a crucial pathway for families to build financial stability and generational wealth — a milestone that has become increasingly elusive for younger households in the region.
“This line of business allows us to continue delivering the housing solutions Southern Californians desperately need, while helping families take their first step toward the American Dream,” said Shkolnik.
In addition to affordability, AWG emphasizes thoughtful design and livability. Many of the firm’s upcoming communities will feature accessible locations near transit, employment centers, parks, and retail amenities — reducing commute times and supporting connected neighborhood lifestyles. The company plans to work closely with local municipalities, community partners, and design teams to ensure projects align with long-term planning and sustainability goals.
A Strategic Expansion, Not a Shift Away from Multifamily
While the company moves confidently into the for-sale sector, AWG says its long-term commitment to multifamily housing remains unchanged. The firm continues to manage and operate most of the apartment units it has developed, maintaining its philosophy of long-term stewardship rather than short-term turnover.
“This is an evolution, not a departure,” Shkolnik emphasized. “We’re still very much in the apartment business — but we’re also stepping up to fill a major gap in the market for attainable homeownership. Both sides of the business are essential to solving the region’s housing crisis.”
AWG intends to continue expanding its multifamily pipeline through strategic acquisitions, redevelopment projects, and innovative ADU opportunities. The company believes both rental and for-sale housing are essential components of a balanced regional housing ecosystem and sees diversification as a way to strengthen resilience and impact.
Supporting Southern California’s Future
With cities across the region focused on increasing density and improving affordability, AWG sees strong collaboration opportunities with public agencies, housing advocates, and community organizations. The company’s proactive move into the for-sale sector aligns with broader policy efforts aimed at creating accessible housing options for the local workforce, teachers, public safety personnel, healthcare workers, and other essential professions increasingly priced out of the communities they serve.
“We view housing development as a responsibility — not just a business,” Shkolnik said. “By expanding into for-sale housing, we’re helping restore balance to a market that’s been out of reach for far too many people for far too long.”
As AWG embarks on this next chapter, it aims to deliver projects that demonstrate that high-quality, attainable homeownership is achievable and scalable in Southern California’s challenging real estate environment. With its combined experience, strategic capital investment, and mission-driven approach, the firm hopes to provide a replicable model for smart, community-centered housing solutions in the years ahead.
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