LOS ANGELES—Playa Vista is reaching full build out of its residential assets, and it could mean great things for developers already in the market. While there is still plenty of room for office development in the market—and plenty of demand for office space—the master planned community had only a finite number of allotted residential units. Brookfield Residential Properties' affiliate Playa Capital Co. has sold Seabluff Condominiums, a 75-unit permit-ready project and the last for-sale development parcel left in the market, to a joint venture between Hearthstone and The New Home Co., which expects the property to capitalize off of the supply ceiling. “Seabluff should benefit from high demand and limited competition,” says Tim Barden, SVP at Land Advisors, which represented the seller in the transaction. To find out more about the full build-out of residential units and what this means for the market, we sat down with Barden for an exclusive interview.
GlobeSt.com: We hear a lot about the office market in Playa Vista. How is that market driving demand for housing in Playa Vista?
Tim Barden: Playa Vista and the surrounding area owe its moniker “Silicon Beach” to the burgeoning tech and start-up scene, with major players like Google, Yahoo, Facebook, Sony and IMAX, all establishing a major presence in the area over the past several years. The robust employment growth and the substantial amount of future new creative office space still under development were key components to making the project attractive to buyers. The thought is that having high-paying jobs increases the demand for local housing.
GlobeSt.com: Why is the market reaching a full build-out? Tell me more.
Barden: The Playa Vista submarket is unique in that it is reaching full build-out of its residential assets, while the office side still has room to grow. Playa Vista is a master planned community with a finite number of approved units, (per the approved entitlements, there is no more land available for residential development). The first housing units were delivered in the early 2000s and the remaining residential planning areas are in development now.
GlobeSt.com: When the market reaches full build out, while the office market still has room to grow, how will that affect supply/demand dynamics in the market?
Barden: When the residential market reaches full build-out, there will be additional employment added to an area that will be unable to supply new housing units, creating a supply/demand imbalance that will positively impact the Seabluff project when it comes online in 2018. As we've seen in most areas of LA and Orange County, this has a positive effect on housing demand and pricing.
GlobeSt.com: Tell me about your vision for the project and the demographics that you are targeting?
Barden: Playa Vista has historically attracted millennials, growing families and move-down buyers alike by its walkable lifestyle. The Seabluff project is located steps away from The Shops at Concert Park, and minutes from the newly completed “Runway” mixed-use development, featuring a variety of hip retailers, restaurants, and entertainment. Future residents also have access to The Resort, a state-of-the-art, newly completed 25,000 square foot community center complete with a 10,000 square foot fitness center, resort-style pools/spas, and community gathering spaces. For trips to the beach and the creative office campus, a free daily shuttle makes Playa Vista a true car-free living experience.
LOS ANGELES—Playa Vista is reaching full build out of its residential assets, and it could mean great things for developers already in the market. While there is still plenty of room for office development in the market—and plenty of demand for office space—the master planned community had only a finite number of allotted residential units. Brookfield Residential Properties' affiliate Playa Capital Co. has sold Seabluff Condominiums, a 75-unit permit-ready project and the last for-sale development parcel left in the market, to a joint venture between Hearthstone and The New Home Co., which expects the property to capitalize off of the supply ceiling. “Seabluff should benefit from high demand and limited competition,” says Tim Barden, SVP at Land Advisors, which represented the seller in the transaction. To find out more about the full build-out of residential units and what this means for the market, we sat down with Barden for an exclusive interview.
GlobeSt.com: We hear a lot about the office market in Playa Vista. How is that market driving demand for housing in Playa Vista?
Tim Barden: Playa Vista and the surrounding area owe its moniker “Silicon Beach” to the burgeoning tech and start-up scene, with major players like
GlobeSt.com: Why is the market reaching a full build-out? Tell me more.
Barden: The Playa Vista submarket is unique in that it is reaching full build-out of its residential assets, while the office side still has room to grow. Playa Vista is a master planned community with a finite number of approved units, (per the approved entitlements, there is no more land available for residential development). The first housing units were delivered in the early 2000s and the remaining residential planning areas are in development now.
GlobeSt.com: When the market reaches full build out, while the office market still has room to grow, how will that affect supply/demand dynamics in the market?
Barden: When the residential market reaches full build-out, there will be additional employment added to an area that will be unable to supply new housing units, creating a supply/demand imbalance that will positively impact the Seabluff project when it comes online in 2018. As we've seen in most areas of LA and Orange County, this has a positive effect on housing demand and pricing.
GlobeSt.com: Tell me about your vision for the project and the demographics that you are targeting?
Barden: Playa Vista has historically attracted millennials, growing families and move-down buyers alike by its walkable lifestyle. The Seabluff project is located steps away from The Shops at Concert Park, and minutes from the newly completed “Runway” mixed-use development, featuring a variety of hip retailers, restaurants, and entertainment. Future residents also have access to The Resort, a state-of-the-art, newly completed 25,000 square foot community center complete with a 10,000 square foot fitness center, resort-style pools/spas, and community gathering spaces. For trips to the beach and the creative office campus, a free daily shuttle makes Playa Vista a true car-free living experience.
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