Plenty of Capital for Multifamily in the South Bay

Michael McKinney

Industrial might be the first asset class to come to mind when you think of the South Bay, but multifamily—like in many markets of Los Angeles—is in high demand. There is ample capital seeking multifamily transactions in the market, and the expansion at LAX, Hollywood Park development and growing job market is expected to fuel multifamily activity this year.

“All kinds of investors are active in this market,” Michael McKinney, first VP and market expert at CBRE, tells GlobeSt.com. “There are value-add investors for sure, and that is probably 80% of the investors in the market. When the renovated properties come onto the market, thought, there are investors that are buying those properties and betting on the future. They might not have the ability or desire to do the renovations, so they are buying renovated properties to hold.”