LOS ANGELES—Orange County has become just as active as the Los Angeles market, and there are plenty of opportunities. Ken Kahan, the founder and CEO of California Landmark Group, says that there are some subtle differences. For example, he says that the only difference is slightly different submarket demands that change the analysis of an acquisition.
Kahan, whose firm is based in Los Angeles, recently entered the Orange County market, and made its first acquisition in the market with the $17 million purchase of a 186-unit multifamily property. “We've been actively pursuing some opportunities in OC with no luck until this acquisition,” Kahan tells GlobeSt.com. “The acquisition of Windmill allowed us to not only establish a footprint in OC, but the asset itself provided a unique opportunity not commonly seen due to the short term ground lease.”
We're looking for value-add opportunities that fit our model of a heavy repositioning strategy. We're attracted to assets that require an outside the box approach that are located in gentrifying neighborhoods. We want to leverage our construction and operational expertise to try and gain a leg up on our competitors.
While analyzing an acquisition opportunity and navigating the competition—Kahan says that the market is getting competitive with more L.A. developers heading to the market—operating a property doesn't change from location to location. “It's all property specific for us. Whether the asset is in L.A., O.C. or up in Northern California, we're setting up a specific operational strategy to best add value to the deal,” he says. “There tends to be more land to work with in OC, so there's slightly more focus on what common area amenities are offered currently or can be added to meet or beat the market. In LA., we're jamming washers and dryers in kitchens. In the OC we may focus more on BBQs and putting greens.”
LOS ANGELES—Orange County has become just as active as the Los Angeles market, and there are plenty of opportunities. Ken Kahan, the founder and CEO of California Landmark Group, says that there are some subtle differences. For example, he says that the only difference is slightly different submarket demands that change the analysis of an acquisition.
Kahan, whose firm is based in Los Angeles, recently entered the Orange County market, and made its first acquisition in the market with the $17 million purchase of a 186-unit multifamily property. “We've been actively pursuing some opportunities in OC with no luck until this acquisition,” Kahan tells GlobeSt.com. “The acquisition of Windmill allowed us to not only establish a footprint in OC, but the asset itself provided a unique opportunity not commonly seen due to the short term ground lease.”
We're looking for value-add opportunities that fit our model of a heavy repositioning strategy. We're attracted to assets that require an outside the box approach that are located in gentrifying neighborhoods. We want to leverage our construction and operational expertise to try and gain a leg up on our competitors.
While analyzing an acquisition opportunity and navigating the competition—Kahan says that the market is getting competitive with more L.A. developers heading to the market—operating a property doesn't change from location to location. “It's all property specific for us. Whether the asset is in L.A., O.C. or up in Northern California, we're setting up a specific operational strategy to best add value to the deal,” he says. “There tends to be more land to work with in OC, so there's slightly more focus on what common area amenities are offered currently or can be added to meet or beat the market. In LA., we're jamming washers and dryers in kitchens. In the OC we may focus more on BBQs and putting greens.”
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