Changes Brewing In Multifamily
When it comes to multifamily, it looks as if there is a shift going on in the marketplace.
Polaris Pacific partner Paul Zeger talked about those shifts as one of the panelists at Bisnow's Construction and Development Forum. Panelists included Wanda Group deputy general manager Rohan a'Beckett, Fifield SVP Don Carp, Paul Zeger, Parkview Financial CEO Paul Rahimian, Harley Ellis Devereaux studio leader Mitch Sawasy, who moderated, and Kilroy SVP development & construction Bob Little.
Paul Zeger (above right) said there are "low-end buyers" trying to get in the market, but "construction costs have skyrocketed."
He said these buyers are interested in smaller, more efficient units that rely on common amenities.
He said there also are high-net-worth people moving out of their houses who want large units when they move into multifamily properties.
Paul Rahimian agreed developers are making multifamily deals with smaller units—with some as small as 400 SF.
People are now "sharing spaces and spending time outside," Paul said.
As a result, apartments are becoming a place where people mainly sleep, according to Paul.
Rohan gave details about One Beverly Hills, an upscale multifamily property the Wanda Group is developing at 9900 Wilshire Blvd.
While it was approved eight years ago for 235 luxury condos, the Wanda Group is now going through a supplemental Environmental Impact Report and seeking approval for the replacement of 42 condo units with a 134-room luxury boutique hotel.
Construction could begin in early 2017 if the approvals are granted.
A total of 250 people attended the event at the Montage Beverly Hills.