LOS ANGELES—Long Beach is expected to be the next market to see a huge transformation in Los Angeles. Over the past several years, the L.A. market has seen several neighborhood renaissances. The most prevalent is Downtown Los Angeles, which has had tens of thousands of new multifamily units and well as condo projects and retail and office activity. Hollywood and Glendale have also seen an abundance of new development, and new demand to warrant it. Now, Long Beach is popping up as the next resurgent market, and it could compete with the Arts District.
“We have seen this play out in other places,” Brett Betzler, director at Moran & Co., tells GlobeSt.com. “Most recently, we saw the emergence of the Arts District in Downtown Los Angeles. Ten years ago, people had no idea what the Arts District was. They would drive around, and in many cases they would not want to get out of their cars. It was really a tough sell. Fast-forward to today, and now it is so obvious. Now, all of the institutional capital wants to be there and they are killing themselves to get at opportunities. Once you hit a tipping point, everything changes very rapidly. Not only does the market change, but investor attitude toward the market also changes very quickly.”
In an earlier story, Betzler said that the Long Beach market has recently seen interest from core and core-plus institutional capital, illustrating the strong market fundamentals and longevity. Once institutions arrive in a market, like the Arts District, it takes off. “In Downtown Long Beach, the same change has started to happen,” says Betzler. “People see these patterns playing out, and they see that in five or ten years, this market is going to be very different than it is today. Over the next five years, you are going to see a steeper growth curve than you are likely to see in other areas of Southern California. It will be very similar to what we have seen in the Arts District in Downtown Los Angeles. Long Beach is the next market where that rapid transformation is going to happen.”
Hollywood and Glendale also follow similar growth patterns, and both have institutional players and ownership. This year, the Jefferson sold in Hollywood for $132 million, and the Towne at Glendale traded hands for $52.4 million. In both deals, competition was high from a range of investors.
LOS ANGELES—Long Beach is expected to be the next market to see a huge transformation in Los Angeles. Over the past several years, the L.A. market has seen several neighborhood renaissances. The most prevalent is Downtown Los Angeles, which has had tens of thousands of new multifamily units and well as condo projects and retail and office activity. Hollywood and Glendale have also seen an abundance of new development, and new demand to warrant it. Now, Long Beach is popping up as the next resurgent market, and it could compete with the Arts District.
“We have seen this play out in other places,” Brett Betzler, director at Moran & Co., tells GlobeSt.com. “Most recently, we saw the emergence of the Arts District in Downtown Los Angeles. Ten years ago, people had no idea what the Arts District was. They would drive around, and in many cases they would not want to get out of their cars. It was really a tough sell. Fast-forward to today, and now it is so obvious. Now, all of the institutional capital wants to be there and they are killing themselves to get at opportunities. Once you hit a tipping point, everything changes very rapidly. Not only does the market change, but investor attitude toward the market also changes very quickly.”
In an earlier story, Betzler said that the Long Beach market has recently seen interest from core and core-plus institutional capital, illustrating the strong market fundamentals and longevity. Once institutions arrive in a market, like the Arts District, it takes off. “In Downtown Long Beach, the same change has started to happen,” says Betzler. “People see these patterns playing out, and they see that in five or ten years, this market is going to be very different than it is today. Over the next five years, you are going to see a steeper growth curve than you are likely to see in other areas of Southern California. It will be very similar to what we have seen in the Arts District in Downtown Los Angeles. Long Beach is the next market where that rapid transformation is going to happen.”
Hollywood and Glendale also follow similar growth patterns, and both have institutional players and ownership. This year, the Jefferson sold in Hollywood for $132 million, and the Towne at Glendale traded hands for $52.4 million. In both deals, competition was high from a range of investors.
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