Multifamily Activity Sparks Expansion at SL Residential

LOS ANGELES—The effects of the Los Angeles multifamily boom are rippling. The sector's strong activity has inspired well-known residential builder SL Residential, the construction division of Snyder Langston, to hire Mark Montoya as its VP of multifamily to focus specifically on the niche. In the position, Montoya will focus on developing multifamily projects in the Los Angeles area. A 30-year veteran in the industry, Montoya joins the company from Morley Builders, where he oversaw the development of student housing, multifamily, mixed-use, affordable and senior housing communities. To find out more about the company's expansion, goals in the multifamily market and current projects, we sat down with Montoya for an exclusive interview. Here is what he says about the market and what we can expect from SL Residential:

GlobeSt.com: This is a new position for the firm. What are the market conditions behind the firm's decision to expand its multifamily presence in Los Angeles?

Mark Montoya: Our VP of SL Residential, Greg Sadick, has been leading Snyder Langston's residential construction division for more than 10 years. Over that time, he has experienced the growing strength of the multifamily market, especially in Los Angeles, Ventura, and Santa Barbara counties. While the residential division's work is diverse, it made sense to bring on a senior executive to focus specifically on this niche.

GlobeSt.com: Tell us about your position, and why is the company a good fit for you personally?

Mark Montoya: Snyder Langston is a firm that I've known very well over the years. Most construction companies with a portfolio as diverse as theirs are twice the size. I was really attracted to this wide-ranging portfolio, working in a mid-size firm and Snyder Langston's familial culture – rather than the more corporate feel of many larger firms. The firm's values and internal community are linked to their “trusted advisor” relationship goals with clients. Snyder Langston believes strongly in relationships and commitment. Getting to be a part of a team like that is a privilege.

GlobeSt.com: What are you goals in this new position?

Montoya: I really believe in the quality of service Snyder Langston provides and the direction the company is headed. Since I value the care that my clients receive, it's a natural desire to want to connect them with the firm. In addition to expanding Snyder Langston's business with my own contacts and developing new ones, I also aim to build relationships with the company's existing client list and uphold the standard expected from a Snyder Langston team member.

Another objective in coming to Snyder Langston is bringing my passion for building residential with me. I can tell the firm has a great existing excitement around this initiative and I look forward to us feeding off of each other's enthusiasm. Knowing that you are building future homes that will house families and memories is very rewarding. I can't think of a more intimate structure than that.

In addition to expanding Snyder Langston's overall work, I plan to also help broaden our portfolio in the “for sale” category, adding more type I mid-to -high rise products.

GlobeSt.com: Tell me about the types of multifamily product on which you'll focus, and in which geographic submarkets of Los Angeles?

Montoya: All of the economic trends point to a continued strong development market for multifamily. There was very little product being built over the last four to six years during the recession. As a result, we were severely under-served, with no market-rate multifamily being delivered.  Now, with ongoing expected population growth, the market is projected to remain strong for the next five to six years. For example, according to market reports, apartment demand in the last four quarters outpaced new supply by a two-to-one margin. Multifamily developers have responded with an increase in permitting activity.

The work we are focusing on consists of market-rate apartments, for-sale condominiums, low-income housing, workforce housing, senior housing, and student housing. The goal is to create unique new neighborhoods, with lots of urban infill and transit-oriented development. I think there is great opportunity in doing more housing that takes advantage of proximity to transit hubs and provides for shorter commutes. 

GlobeSt.com: You have a few projects already underway in Los Angeles. Do you have any other projects in the pipeline that you can tell us about?

Montoya: One of the more exciting areas is the Silicon Beach market and the evolution of Playa Vista. We were just selected to build a 75-unit for-sale luxury condominium project in the heart of Playa Vista for Brookfield Residential. While I've had a great deal of experience in Playa, this is the first time SL Residential will be working in this growing market. Construction is scheduled to begin in October. The property, called Sea Bluff, will be wood frame construction over three levels of parking.

The SL Residential team is working on Shea Properties' Alhambra Place, a mixed use project on 10 acres with 260 market-rate apartments and 140,000 square feet of retail space. The retail center's design helps to provide a fresh feel to downtown Alhambra with its modern sharp lines and an array of materials and aesthetic features, including wood, metals, ambient lighting and lush landscaping. The redevelopment included 80,000 square feet of existing building renovation and the construction of several one and two-story, Type V retail buildings. This required adding 41,000 square feet of space, a remodel of a former Mervyns, the complete demolition and reconstruction of an additional building, and the relocation of a bank. A Type II-B parking structure was included in the scope to accommodate residents and contains 588 parking spaces.

The firm is also building Lennar Multifamily Investors' Highland Apartments 76, located in Hollywood. Pre-construction and construction of this urban mixed-use community consists of 76 new, multi-family rental units with up to 2,500 square feet of ground floor commercial retail uses in a five-story, Type III wood frame building that includes a rooftop fitness center and pool deck.