Multifamily Rides On L.A.'s Cachet, Remains Undersupplied
Multifamily developers are bullish on L.A. these days, as the city benefits from global interest, growing tourism and a continued thirst for housing.
LaTerra Development CEO Charles Tourtellotte, above far right, told the crowd of more than 250 that rent growth is good in L.A., and there is global interest in the city.
With not just one, but two NFL teams, "L.A. is becoming the place [to be]," he said.
Tourtellotte was among the developers who spoke at our Los Angeles Multifamily event yesterday.
Greystar managing director Perry Pound and LaTerra Development CEO Charles Tourtellotte
Tourism in L.A. is also "growing at an amazing rate," Tourtellotte said. He said the second-fastest-growing group of tourists is from India. China is No. 1, according to the L.A. Tourism and Convention Board.
L.A. has about 45 million tourists, according to Gemdale U.S.A. president Michael Krupa.
Tourtellotte said this is the first time L.A.'s hotel occupancy rates have exceeded 80%.
Gemdale U.S.A.'s Michael Krupa and Polaris Pacific's Rhonda Slavik
Krupa described L.A. as "the quintessential gateway city."
He also said L.A. Mayor Eric Garcetti is "an unheralded hero who does a great job of embracing foreign development."
However, Polaris Pacific director of business development Rhonda Slavik said L.A. is still undersupplied in terms of housing despite the construction going on in DTLA.
She expects the city to be undersupplied for the next couple of years.
Pound doesn't expect deliveries to slow down until two to three years from now.
“This is, in many ways, a magical city, and it’s working on all cylinders," Krupa said.