Multifamily Projects Adopt Hospitality Perks To Lure Residents
With so many multifamily developments delivered or in the pipeline, developers are looking to add that special quality to their project that separates them from the pack.
“Everyone is trying to exclude themselves by providing the X-factor,” The Athens Group Chief Operating Officer Jay Newman said. “That could be gym facilities or amenities; you’re seeing a merger of hospitality into multifamily.”
Newman spoke at Bisnow's recent Los Angeles State of the Market event at Figueroa at Wilshire in downtown Los Angeles. He joined other commercial real estate executives, including Morley Builders Vice President Jan Karl, Walker & Dunlop Senior Vice President Gabe Weinert and RealtyMogul Chief Investment Officer Chris Fraley in the multifamily discussion.
The multifamily market in Los Angeles is healthy and there is a lot of demand, Walker & Dunlop's Weinert said.
A report from University of Southern California Lusk Center for Real Estate and Beacon Economics forecast rent in Los Angeles County to increase by $136 per month by 2019.
With housing affordability out of reach for many residents, multifamily is booming and developers are looking for ways to distinguish their properties to lure and retain tenants.
For the elite luxury renters, who could afford up to around $60K a month, Ten Thousand Santa Monica provides high-end amenities, including a chef kitchen, an outdoor theater, a 3D body scanner, a concierge service and personal assistants to run errands.
For $3K a month, tenants at CGI Strategies’ KODO project in Koreatown will have a fully furnished unit, a tablet that operates the smart features in their home, continental breakfast, dry cleaning pickup and delivery, personal training and dog walking and grooming.
Even smaller micro-units across Los Angeles are providing gaming lounges, dry cleaning services, grocery pickup and dog-washing areas.
Newman said this is not something that could be applied across the board but it works in certain markets.
“People are looking for different edges,” Newman said. “This is a very attractive model for certain markets, especially in the Westside.”
Check out a slideshow of the event here: