LOS ANGELES—The single-family rental market in Southern California has attracted HomeUnion. The online investment management firm is expanding its business here to take advantage of the market and the diversity of asset types. It plans to start with key neighborhoods in the L.A. area.
“We are rounding out our asset inventory,” Don Ganguly, CEO of HomeUnion, tells GlobeSt.com. “Southern California is a very active real estate market and it has some very interesting segments, and one piece of that specifically is international investors. If you break down Southern California, you are actually seeing properties with 3% to 5% yields, so it is a little more accessible. It is more expensive than the Midwest and has a little bit lower yields, but Southern California has a cachet.”
The firm is currently in 16 markets nationally, and is headquartered in Irvine, CA—making it a natural step to expand its business here. The firm will start with properties in the greater L.A. area, and is currently vetting properties in the Antelope Valley, West L.A. and Santa Monica. However, it is also interested in Inland Empire and Orange County markets, especially Newport Beach and Irvine.
“Southern California offers a pretty decent mix of different types of properties that I think would cater to the investors we are working with now,” says Ganguly. The firm is interested in everything from family neighborhoods to class-A property types that are attracting Asian investors.
For the unfamiliar, the firm allows investors to invest remotely in single-family real estate. Last year, it launched a single-family home rental website specifically tailored to the individual investor.
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