Value-add investors arefinding a goldmine in Glendale. The market has a healthy stock ofvintage apartments in need of renovation, no rent control andrental growth averaging 4% annually. Champion Real EstateCo. is one of the investors taking advantage of the marketfundamentals. The firm has acquired a two-property multifamilyportfolio for $33.6 million with plans to invest $50,000 per doorinto the properties and bring rents to market rate. ArthurArejian of Vanguard Investments brokeredthe deal, and says that he is seeing healthy activity fromvalue-add players in this market. To find out more, we sat downwith Arejian for an interview.

GlobeSt.com: Why has Glendale become such an activeinvestment market for multifamily?

Arthur Arejian: A lot of equitycapital is chasing Glendale because it is a non-rent controlenvironment. Secondly, there is a hidden job market in Glendale,and there is an underground economy that fuels job growth. As aresult, there is a tremendous amount of business that is tied tojobs, income and rents. The market has a great location on the map.It is in close proximity to Downtown Los Angeles, Pasadena andHollywood, making it very centralized. And, the market has provento have tremendous rent growth in the last six years. It has seenapproximately 4% to 5% of rent growth each year. As a result, thereare more than 6,000 new apartment units under construction inGlendale, and a lot of developers are chasing this market aswell.