3 CRE Q&A: The Drivers of Santa Monica’s Multifamily Market

By Dennis Kaiser

Chelsea Santa Monica is a recently-opened, four-story, mixed-use project in supply-constrained Santa Monica, CA from Century West Partners. The 56-unit beach multifamily property, set above ground floor retail, includes a collaboration with interior designer, Barclay Butera. Century West Partners’ Randy Fifield shared insights into the larger trends shaping the Westside market, how this luxury apartment project fits into the marketplace, and how it matches up with demand.

Q: What larger trends are shaping the market right now?

A: Many would-be buyers are still shying away from the for-sale housing market. And with the millennials representing such a large generation that is now an integral part of the housing market – still mainly from a rental standpoint – we don’t see demand for apartments waning anytime soon. This is especially true in hot metropolitan areas like Santa Monica that are high barrier to entry and in high demand.

Q: How was the project tailored for Santa Monica, and how does it fit into the marketplace?

A: Chelsea celebrates the Santa Monica lifestyle, which includes the beach views and activities, vibrant nightlife, and an active lifestyle. These elements are celebrated in our rooftop lounge areas, bike amenities and proximity to surrounding amenities. But, we also embraced this further by bringing in renowned interior designer Barclay Butera and his team in a joint interiors collaboration. With signature projects such as Montage and Terranea as part of their portfolio, as well as a passion for fabulous contemporary living environments that parallels our own, we knew this collaboration would be a success.

Viewable in one of our models, the design and furnishings are quite special and embrace the cool California vibe that so many strive for. Additionally, our longtime partner Nadia Geller Designs, through her installations in the lobby and common areas, helped me to bring my inspiration for enhanced beach chic to life.

The ground floor of Chelsea includes 6,000 square feet of retail space, which is entirely leased to two separate upscale restaurants. The south space will feature Cava Grill, a healthy Mediterranean eatery. The north space will feature a new culinary concept created by a known local restaurateur. Each will be a new debut in the region.

Q: What renter demographics are you targeting, and why?

A: Generally speaking, all of Century West Partners’ rental communities aim to meet growing demand among sophisticated consumers who are design-oriented and are looking for a luxe living experience with the flexibility of a lease. Our renters tend to include tech-savvy millennials, successful professionals and even empty nesters. At Chelsea, we are also seeing a lot of demand coming in from those employed in the Silicon Beach area, as well as folks who are looking to split their time between two homes and hoping one of them is beach adjacent like Chelsea.

For comments, questions or concerns, please contact Dennis Kaiser