Can Glendale Absorb Its Growing Housing Supply?

Apartment demand in Glendale is seemingly insatiable. The apartment supply has grown by 10% in recent years, and yet, both absorption and rent growth remain strong. Now, the largest project yet is delivering in phases through the end of the year to test the demand. So far, demand is continuing to outpace the new supply. Next on Lex, from developer Century West Partners, is a 494-unit apartment property with 8,100 square feet of ground floor retail space in Downtown Glendale. The first phase of the project delivered this summer and is already 60% leased. Phase two delivers in November and the final buildings deliver in early 2019.

“We delivered phase I this summer, and it is already 60% leased. In a new building you usually get a lot of early leasing activity. We are scrambling to get building B done in November or we will run out of units. The final phases will delivered early 2019. The staggered deliveries help. There is only one other building in lease-up in Glendale, and the occupancy is extraordinarily high. Everyone is in the 90% range,” Kevin Farrell, EVP and COO at Century West Partners, tells GlobeSt.com. Farrell says that not only has leasing activity been strong, but the firm is meeting pro forma rents that included rent growth for this year.

Century West Partners has been a pioneer and leader in emerging markets like Koreatown, bringing the first luxury apartment development to the market. It saw similar growth characteristics in Glendale, but admits that it is arriving late to the market. “This is an unusual story for us. Usually when we enter a market, we are an early adopter in a location, like in Koreatown,” says Farrell. “In Glendale, the city did a specific plan that allowed a number of sites to be developed as luxury housing. We are late to the party, but we have one of the best sites because it is so centrally located in Glendale. Not only did a lot of residential housing beat us to the market, but even more importantly, the Americana at Brand has been there with a great shopping experience. The housing that has been built has turned a nine-to-five street into a 24-7 street.”