Multifamily Demand Sweeps Other Asset Classes

Multifamily demand has proven that it trumps all else. A new project from KTGY Architecture + Planning is converting an office property in Irvine into a multifamily community. The community, called LUX by Intracorp, will include 39 townhomes in Uptown Irvine. With such strong demand for housing, KTGY expects more multifamily conversion projects in the market.

“New infill residential housing in locations near existing job centers makes sense. People want to spend less time in their cars, and local government leaders are trying to find ways to reduce the strain on the regional transportation infrastructure,” Bryan Sevy, associate principal at KTGY Architecture + Planning, tells GlobeSt.com. “KTGY is currently working on a number of large and small infill communities throughout southern California that are in close proximity to existing employment and retail opportunities.”

The community will be a luxury urban campus with homes starting in the mid-$800,000 range. Homes will have three or four bedrooms, and will range in size from 1,587 to 2,077 square feet. “The LUX community is part of a number of residential developments in the Irvine Business Complex,” adds Sevy. “As the IBC matures, there is a strong need to find a better balance of housing and employment uses in the area. Irvine has a daytime population increase of +/-140,000 people as commuters arrive every day to work in Irvine. Adding residential opportunities in the IBC gives people the opportunity to drive less, and live, shop, and work in Irvine.

While multifamily conversion projects are becoming more popular, a result of the the strong demand for housing and limited developable land, these projects are not easily converted into a livable community. “The new residential neighborhood wants to have a residential feel, while at the same time becoming part of the fabric of the existing community,” explains Sevy. “This is best achieved with a modern architectural style with pedestrian-scale elements. The new communities should have appropriately sized open spaces that are walkable and that encourage social gathering and interaction.”

In this case, however, the location was the biggest draw for conversion, and worth the challenge. “Because the LUX community is located in the heart of Orange County, it is in close proximity to shopping, restaurants and employment opportunities,” says Sevy. “The community appeals to working professionals who want access to the employment centers in the Irvine Business Complex and its abundance of jobs. And because LUX is located within the Irvine school district, one of the top school systems in California and the United States, it appeals to families with children.”