Micropolitan's Boutique Multifamily Focus Wins Tenants

Micropolitan is based in Los Angeles.

LOS ANGELES—Boutique multifamily is a hit with more “sophisticated demographics” looking for community and amenities, according to Micropolitan , an investor and developer that focuses on 30- to 80-unit multifamily projects and acquisitions. The firm focuses in the Southern California market, and targets land sites that can accommodate 70- to 150-units to have room for its robust amenity packages. To find out more about the firm’s boutique investment strategy and where it is finding deals, we sat down with Benjamin Abrams , director of real estate investments at Micropolitan, for an exclusive interview. Tell me about your investment strategy and you acquisition outlook/goals for the year? Benjamin Abrams: We seek-out urban infill projects in the Greater Los Angeles, Orange County and San Diego areas that have high Walk Scores and are within a few blocks of major public transportation hubs.  Our future outlook for the urban areas in Southern California remain bullish as we are pursuing additional development and entitlement opportunities. GlobeSt.com: Why do you focus on 30- to 80-unit apartment product? Abrams: Our business strategy has always been to build smaller size boutique type of products; however, we are focusing on development opportunities, which procure 70 – 150 +/- units which will allow us to provide more amenities to our residents. The size and locations of our projects provide ample lifestyle components all the while providing a comforting community feel. Thus our communities appeal to the sophisticated demographic that yearns for a boutique yet lifestyle amenitized residences. GlobeSt.com: What submarkets are you looking for opportunities in, and why? Abrams: We track various urban infill submarkets throughout Greater Los Angeles, Orange County and San Diego which show growth potential or are currently in stable markets such as West Los Angeles, Mid-Wilshire, The Valley, Little Italy and Hillcrest to name a few. These markets have a high renter demand however lack sufficient new housing. In addition, these areas tend to maintain their value, which helps weather economic shifts we can experience in the world of development. These markets have a pent-up demand for new product, which is created by jobs, local entertainment, the arts and general lifestyle centric desires from our renter base. In addition, we are looking for areas with older stock of inventory where the choices have been limited for people who want to remain in their neighborhood. GlobeSt.com: What is your business plan for the properties in your portfolio? Abrams: Our business plan provides leniency with our investments, which allows us to buy, sell and hold assets as we grow our portfolio and deliver exemplary returns for our investors while improving the greater community surrounded by our developments. GlobeSt.com: How do you finance your acquisitions? Abrams: As a strong sponsor, we are able to close our transactions with cash or without financing. We are a programmatic developer and are fortunate to have an impeccable track record, which has attracted preeminent investors. GlobeSt.com: Any exciting news you can share with us now? Abrams: Albeit, our project in the trendy yet docile Larchmont Village area is nearing completion in the coming months and our NoHo development adjacent to the Orange and Red Lines and North Hollywood Park will near completion next summer. We are adding another level of acquisition where we can take entitlement risk to help fill the pipeline of product for the 24 to 36 months out. GlobeSt.com: What is your outlook for the Southern California market? Abrams: The Southern California market continues to show signs of strength and additional room for growth. If you know your product, have a solid plan and know your Micropolitan in Southern California you will do well in the coming years. In addition, the improving economy will allow further growth with more in-migration, millennials moving out of their parents homes and the overall lack of supply due to constraint caused by availability of developable land and time to market.