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California  + Los Angeles  + Apartments  | 

Institutional Investors Still Favor L.A. Multifamily

By Dennis Kaiser

JLL recently expanded its multifamily team in SoCal with the addition of Chris Benton as SVP. Connect Media asked the veteran commercial real estate advisor for insights into why the Los Angeles multifamily market continues to be targeted by institutional investors as they expand and manage their portfolios. Here are Benton’s thoughts in our latest 3 CRE Q&A.

Q: How will the state of institutional investment in the L.A. multifamily sector differ in 2019?
A:
There will be a lot less hesitancy now that Prop 10 has been defeated. Investors were very tepid in the second half of 2018, as the vote got closer and closer. Rent control still looms large in California, but how it will be enacted is yet to be seen and not in the immediate future.

Q: What trends are you seeing in L.A. multifamily investment?
A:
There is an influx of capital to the tech-centric job locales, namely Hollywood and Silicon Beach. In the past week, several tech firms have announced huge lease deals, making those areas even more desirable for investment. The disparity of renting and owning is still immense in those markets.

Q: How is the influx of new development impacting the L.A. investment market?
A:
The pipeline of new apartments coming online is still massive, however certain markets are better suited to absorb those units than others. Downtown L.A.’s new units were absorbed at a much faster rate than anyone could have predicted, with vacancy compressing by 30 bps in 2018 to just 3.8%. With Y-O-Y rent growth of 6% in 2018, the downturn most were planning for in DTLA never came. West LA will have quite a few deliveries in 2019, however the area has been drastically underserved in the luxury rental market, so I believe those units will be snapped up quick.

For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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