After Megaproject Fallout, Questions For Anaheim's Multifamily Assets In The Platinum Triangle
According to the city, more than 4,000 units have come online in the past couple of years, and nearly 3,000 more units have either been approved or are under construction.
But a lingering question remains for the Platinum Triangle: With all of these people supposedly moving in, where is all the essential retail that is supposed to support present and future tenants?
"I think what everyone is worried about in the Platinum Triangle is that you have a lot of units coming up and they are competing against each other," Berkadia Managing Director Jackson Cloak said. "You combine that with the fact that everyone is wondering where are all the amenities and retail to support all these tenants is going to be and what it’s going to be."
Just a couple of miles from the Disneyland Resort and the Anaheim Convention Center, the Platinum Triangle is an 820-acre former industrial area anchored by Angel Stadium, the Honda Center and the ARTIC transportation hub.
More than $1B of investments is being poured into projects to develop the Platinum Triangle, according to the city.
LT Global’s $500M megadevelopment LT Platinum Center would have sat on a 14.8-acre site on the corner of Orangewood Avenue and State College Boulevard next to Angel Stadium, and was expected to fill some of that area's entertainment and retail void.
But LT Global quietly sold the land to Anaheim Jianyong Investment and PDC Anaheim Properties for $32M earlier this year. Irvine-based Camphor Properties will serve as a partner in developing the land.
According to the Orange County Register, Camphor, on behalf of Anaheim Jianyong Investment and PDC Anaheim Properties, is planning to build a mixed-use development with a hotel, grocery and residential component, but not as grand as LT Global's vision.
Still, no one is sure when, and if, that will come online.
The lack of available retail could hurt, at least in the short-term, the demand for multifamily properties in the Platinum Triangle.
"For all those tenants, where are they going to go for all of the essential things like milk and diapers?" Cloak said. "Granted, the advent of Amazon can offset a little bit of that, but what does it do to the appeal or rentability of an apartment if somebody doesn’t have a store within a 15-minute drive?"
Cloak said he is curious to see how long it is going to take for the Platinum Triangle to get absorbed and how the market plays out. Cloak is bullish on the multifamily market in Anaheim and across Orange County.
"The Orange County market for the last 20 years has continued to grow from both a tenant and business and diversity perspective, and that has also flowed over into international and institutional investments as well," Cloak said. "Orange County's profile in the last 20 years has continued to improve in all of those areas and right now, it's poised to continue that trend."
Bisnow's Orange County Multifamily Summit will be held Nov. 21 at the Hilton Anaheim.