LOS ANGELES—The Santa Monica market is only growing in popularity. Palisades is an active player in the market with a mission to elevating the residential and retail properties in the market. While this is a difficult market to penetrate, they have found opportunities to enhance the market with projects like AIRE and 631 Wilshire Blvd., a 40,000-square-foot retail property. To find out more about the company's plans, how it is navigating the Santa Monica market and where the market is headed, we sat down with Ken Simpson, VP of Palisades Project, for an exclusive interview.
GlobeSt.com: Santa Monica is a notoriously tight market. How difficult is it to find and win opportunities in the market?
Ken Simpson: Santa Monica is a coveted Southern California locale known as much for its quintessential beach lifestyle as it is for being a burgeoning hub for the new economy. With this high demand and limited inventory, especially for new construction, Palisades continues to seek out unique opportunities in this market. They are, like any sought-after market, few and far between, but when they present it is worth the wait and the time it takes to source them.
For background on our current real estate, Palisades is currently developing AIRE Santa Monica. Located at 1433 14th Street, AIRE comprises 19 purposeful residences centered around a spacious, open-air courtyard with casual lounging areas, peaceful water features and a green living wall. In addition, at the close of 2016, we acquired a multi-story building in Santa Monica, further expanding our footprint in the active market. Located at 631 Wilshire Blvd., the property comprises approximately 40,000 square feet of retail and commercial spaces on the lower floors and live-work units above. Palisades is also the owner of 730 Arizona Ave, a commercial building fully occupied by shared workspace company, Spaces.
Palisades' ongoing mission is to incorporate innovative design that enhances the surrounding environment. We see these Santa Monica projects as exceptional opportunities to introduce a higher standard of coastal living and retail in this extremely popular market. Each of our project presents an opportunity to create high-design built environments in collaboration with notable designers, trusted partners and an engaged community. With our diverse portfolio of real estate in Santa Monica, Palisades is continuing to change the discourse on development with world-class perspective, local expertise and a passion for craftsmanship.
GlobeSt.com: How has the Silicon Beach movement changed the market?
Simpson: There are big changes happening on the west side of Los Angeles right now. Big-name tech companies such as Google, SnapChat and YouTube have opened offices here, making LA's Silicon Beach area the second-largest tech hub in the country, behind Silicon Valley. As Los Angeles's tech scene continues to grow, with it comes demand for luxury residences in Santa Monica, Venice Beach and Playa Vista.
One of the latest projects to emerge is our AIRE Santa Monica, a boutique condominium currently under construction on 14th Street. This eco-friendly project consists of three buildings set around a courtyard—one that is dotted with lounge spaces, water features and a living wall. Since new construction is limited in Santa Monica, AIRE is among only a few new condo developments to come to market. With this tech-boom and limited residential condominiums in development to meet the influx of residents, projects like ours present a rare high-end residential opportunity for the future and new residents of West LA.
In addition, the Silicon Beach movement has brought in a demand for elevated design and living in this beach city. For AIRE's unique design, we sought out a world-class designer to present future residents an opportunity for more spirited living in this highly sought-out neighborhood. With the help of JFAK Architects, we created gallery-like interiors and spaces that allow for a relaxed yet contemporary lifestyle.
As Silicon Beach buyers are looking for new opportunities for sophisticated coastal living, AIRE has been envisioned to embrace Santa Monica's idyllic climate and open-air lifestyle. By incorporating high ceilings and open floor plans, AIRE's residences boast spacious and fresh interior spaces that fluidly extend to the generous outdoor spaces belonging to each unit. We purposely designed each home in accordance with Santa Monica's light patterns and we welcomed the beautiful effect that light has on each room throughout the day. New condo project opportunities present a vibrant new aesthetic for this area. There is a shifting demand for developers to bring a new level of high-design residences to the area and Palisades is meeting it with AIRE.
GlobeSt.com: You play in the retail and residential spaces. How do these two asset classes compare in Santa Monica?
Simpson: We feel Santa Monica's highly sought after residential and retail properties positively impact each other and add immeasurable value to the local market. Similar to the residential market, retail properties that offer elevated shopping, entertainment and unique dining experiences are more attractive than ever. Since Santa Monica is such a live, work and play destination, one of the key attractions for buyers and visitors alike is the location and the lifestyle it affords.
As an example, one of the key draws for living at AIRE is that residents can take a short stroll or bike ride to popular entertainment and shopping including Third Street Promenade and Montana Avenue, and the property is within close distance to top-rated schools including UCLA and Santa Monica College. With the need for dynamic retail, unique retail plazas such as our newly acquired 631 Wilshire, seek to offer highly desirable retail tenants such as popular Mendocino Farms and Sidecar Donuts as well as expansive office spaces with interiors that allow for a flexible approach to creative, loft style work environments. As the demand for high-end residential and retail endures, these two asset types will continue to directly influence / strengthen the other.
GlobeSt.com: What is next for Santa Monica? Where is the market headed, and what is your forecast for the year ahead?
Simpson: We believe the Santa Monica market will continue to grow at a strong pace in both the residential and commercial sectors. Santa Monica is one of the most desirable destination cities in Southern California. With the city's initiatives and investment in improving Downtown Santa Monica, its beaches and commercial districts, infrastructure in transportation including the Expo Line, and the recent attraction of Startups in technology, media and other industries, Santa Monica is continuing to evolve as a world-class tourism destination.
There has been a significant rise in mixed-use projects which is simply a result of limited land and a huge housing demand, not to mention the trendy lifestyle that comes with a farmer's market, fitness studio, etc. at your doorstep. Our commercial properties at 631 Wilshire and 730 Arizona are located in one of the most desirable hubs of Santa Monica, which has drawn numerous companies, especially in the tech world. In addition, we feel there will be an increase in demand for creative offices as reflected by our tenants in our Santa Monica commercial properties.
As seen in our investment in this neighborhood, we believe in the future and growth of Santa Monica and all of our projects will be the beneficiary of the development in its vicinity.
LOS ANGELES—The Santa Monica market is only growing in popularity. Palisades is an active player in the market with a mission to elevating the residential and retail properties in the market. While this is a difficult market to penetrate, they have found opportunities to enhance the market with projects like AIRE and 631 Wilshire Blvd., a 40,000-square-foot retail property. To find out more about the company's plans, how it is navigating the Santa Monica market and where the market is headed, we sat down with Ken Simpson, VP of Palisades Project, for an exclusive interview.
GlobeSt.com: Santa Monica is a notoriously tight market. How difficult is it to find and win opportunities in the market?
Ken Simpson: Santa Monica is a coveted Southern California locale known as much for its quintessential beach lifestyle as it is for being a burgeoning hub for the new economy. With this high demand and limited inventory, especially for new construction, Palisades continues to seek out unique opportunities in this market. They are, like any sought-after market, few and far between, but when they present it is worth the wait and the time it takes to source them.
For background on our current real estate, Palisades is currently developing AIRE Santa Monica. Located at 1433 14th Street, AIRE comprises 19 purposeful residences centered around a spacious, open-air courtyard with casual lounging areas, peaceful water features and a green living wall. In addition, at the close of 2016, we acquired a multi-story building in Santa Monica, further expanding our footprint in the active market. Located at 631 Wilshire Blvd., the property comprises approximately 40,000 square feet of retail and commercial spaces on the lower floors and live-work units above. Palisades is also the owner of 730 Arizona Ave, a commercial building fully occupied by shared workspace company, Spaces.
Palisades' ongoing mission is to incorporate innovative design that enhances the surrounding environment. We see these Santa Monica projects as exceptional opportunities to introduce a higher standard of coastal living and retail in this extremely popular market. Each of our project presents an opportunity to create high-design built environments in collaboration with notable designers, trusted partners and an engaged community. With our diverse portfolio of real estate in Santa Monica, Palisades is continuing to change the discourse on development with world-class perspective, local expertise and a passion for craftsmanship.
GlobeSt.com: How has the Silicon Beach movement changed the market?
Simpson: There are big changes happening on the west side of Los Angeles right now. Big-name tech companies such as
One of the latest projects to emerge is our AIRE Santa Monica, a boutique condominium currently under construction on 14th Street. This eco-friendly project consists of three buildings set around a courtyard—one that is dotted with lounge spaces, water features and a living wall. Since new construction is limited in Santa Monica, AIRE is among only a few new condo developments to come to market. With this tech-boom and limited residential condominiums in development to meet the influx of residents, projects like ours present a rare high-end residential opportunity for the future and new residents of West LA.
In addition, the Silicon Beach movement has brought in a demand for elevated design and living in this beach city. For AIRE's unique design, we sought out a world-class designer to present future residents an opportunity for more spirited living in this highly sought-out neighborhood. With the help of JFAK Architects, we created gallery-like interiors and spaces that allow for a relaxed yet contemporary lifestyle.
As Silicon Beach buyers are looking for new opportunities for sophisticated coastal living, AIRE has been envisioned to embrace Santa Monica's idyllic climate and open-air lifestyle. By incorporating high ceilings and open floor plans, AIRE's residences boast spacious and fresh interior spaces that fluidly extend to the generous outdoor spaces belonging to each unit. We purposely designed each home in accordance with Santa Monica's light patterns and we welcomed the beautiful effect that light has on each room throughout the day. New condo project opportunities present a vibrant new aesthetic for this area. There is a shifting demand for developers to bring a new level of high-design residences to the area and Palisades is meeting it with AIRE.
GlobeSt.com: You play in the retail and residential spaces. How do these two asset classes compare in Santa Monica?
Simpson: We feel Santa Monica's highly sought after residential and retail properties positively impact each other and add immeasurable value to the local market. Similar to the residential market, retail properties that offer elevated shopping, entertainment and unique dining experiences are more attractive than ever. Since Santa Monica is such a live, work and play destination, one of the key attractions for buyers and visitors alike is the location and the lifestyle it affords.
As an example, one of the key draws for living at AIRE is that residents can take a short stroll or bike ride to popular entertainment and shopping including Third Street Promenade and Montana Avenue, and the property is within close distance to top-rated schools including UCLA and Santa Monica College. With the need for dynamic retail, unique retail plazas such as our newly acquired 631 Wilshire, seek to offer highly desirable retail tenants such as popular Mendocino Farms and Sidecar Donuts as well as expansive office spaces with interiors that allow for a flexible approach to creative, loft style work environments. As the demand for high-end residential and retail endures, these two asset types will continue to directly influence / strengthen the other.
GlobeSt.com: What is next for Santa Monica? Where is the market headed, and what is your forecast for the year ahead?
Simpson: We believe the Santa Monica market will continue to grow at a strong pace in both the residential and commercial sectors. Santa Monica is one of the most desirable destination cities in Southern California. With the city's initiatives and investment in improving Downtown Santa Monica, its beaches and commercial districts, infrastructure in transportation including the Expo Line, and the recent attraction of Startups in technology, media and other industries, Santa Monica is continuing to evolve as a world-class tourism destination.
There has been a significant rise in mixed-use projects which is simply a result of limited land and a huge housing demand, not to mention the trendy lifestyle that comes with a farmer's market, fitness studio, etc. at your doorstep. Our commercial properties at 631 Wilshire and 730 Arizona are located in one of the most desirable hubs of Santa Monica, which has drawn numerous companies, especially in the tech world. In addition, we feel there will be an increase in demand for creative offices as reflected by our tenants in our Santa Monica commercial properties.
As seen in our investment in this neighborhood, we believe in the future and growth of Santa Monica and all of our projects will be the beneficiary of the development in its vicinity.
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