New Koreatown Development Caters To A New Breed Of Renters
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Are the days of providing unfurnished apartments over?
Catering to a new generation of renters, real estate investment and development firm CGI Strategies has opened The KODO, a fully furnished, full-service residential development with tech components in Koreatown.
The six-story, 60-unit complex at 2867 Sunset Place, a block south of Wilshire Boulevard and the Wilshire/Vermont Metro station, is a mix of fully furnished studio, one- and two-bedroom units ranging from 500 to 850 SF.
Monthly rates start at $3K.
CGI President and founder Gidi Cohen said the days of packing up a U-Haul are over.
“The traditional apartment model is trending to fully furnished units to accommodate the new renter profile,” Cohen said in a news release.
“We are seeing a shift in attitude among today’s renters, especially young urban dwellers who are looking for a finished living environment that contributes to their more active lifestyle,” he said. “Renters want a curated experience that includes stylish furnishings, building amenities and boutique hotel-style programming that they can enjoy from the first moment they walk in the door.”
CGI Strategies acquired the site, once a vacant plot of land, in 2013. According to its website, CGI plans to hold the property long term. Officials expect to generate $6.8M in returns over a seven-year holding period.
More than 56% of renters are millennials, according to Zillow. Several other studies show millennials are willing to pay a little more for multifamily dwellings that feature technology and other services.
Experts have said providing full service and the incorporation of smart living technology in units will drive the growth of the industry.
In an email to Bisnow, Cohen wrote that the company began seeing this shifting trend in the multifamily industry right around the same time as the Airbnb phenomenon of short-term rentals took root.
"This, in conjunction with millennials coming of age and having an interest in lifestyle experiences, has greatly impacted the need for more supply and services in the extended-stay segment," he wrote.
The KODO held soft openings last week and is already 15% occupied, Cohen wrote.
Residents at KODO receive free continental breakfast, a mobile tablet that controls the tech features in their units, dry cleaning pickup and delivery, in-suite dining, professional car service, dog walking and grooming services and personal training.
The model has proven successful in other CGI properties in Brooklyn, New York, and Atlanta. The company is planning to open more of these kinds of developments in the Los Angeles area, Cohen said.