Legacy Nears 11,000 Units Under Management

According to J. Scott Morrison, Legacy Partners SVP overseeing the region, the company expects to expand that management portfolio this year as it seeks new assignments. Morrison says that on the heels of the growth in the past two years, which has greatly expanded the company's management operations, the firm expects to add another 2,400 units this year.

The Legacy Partners SVP says that the company sees growth potential because of the high percentage of renters in Southern California. With Los Angeles and surrounding areas consisting primarily of renters–60% versus 32% nationwide–the company expects demand for apartments to continue growing for some time.

Morrison notes that the company's portfolio has grown as large as 25,000 units, but the number of units "normally fluctuates when properties are added or when owners are positioned to sell." Observes Morrison: "This is one of the few businesses where you can lose clients when you do a great job. As we improve the operation of the assets we manage, the owners are better positioned to sell them at a profit."

Third-party management has been a strong driver of Legacy Partners' recent growth, Morrison points out. The company is constantly scouting new portfolios, as well as condo projects that may convert to leasing due to the slowdown in for-sale housing.

Morrison's operation is a division of Legacy Partners Residential Inc., a developer and operator of residential and commercial real estate. The Foster City, CA-based firm was spun off from the Western US operations of Lincoln Property Co. in 1998.

In addition to nearly 11,000 market-rate, affordable and senior apartment units managed under contract and/or developed and owned by Legacy Partners, the division's portfolio also includes nearly 400 boat slips and 500 lofts; nearly 500 condo units, either under warranty or on behalf of homeowners' associations; and 201,000 sf of retail space.

Among the portfolio additions that pushed Legacy near the 11,000-mark in units under management are the Alta Court in Irvine, Stadium Lofts in Anaheim, the Verandas and Sunset Plaza in West Covina and Legacy at Westglen in Glendale. Los Angeles additions include the Clinton Apartments, the Title Guarantee & Trust Building, 435 S. Detroit St., 630 S. Hauser St., Pacific Place, Crescent Park in Playa Vista, Pegasus and the Lofts at NoHo Commons, North Hollywood.