OC Multifamily Still Has Room to Run. Here's Why.
Fundamentals don't lie, and Orange County multifamily has some of the strongest ones in California now, even overtaking NorCal markets. That's why we're excited to present our 4th annual Orange County Multifamily Event, which will start at 8am on Thursday, Nov. 19, at the Fairmont Newport Beach.
Among our speakers will be MG Properties Group CEO Mark Gleiberman, who tells us there will be more significant revenue growth in Southern California over the next few years, including Orange County, than in Northern California. That's because NorCal has seen a more significant run-up in recent years. Now it's SoCal's turn, as the region experiences an influx of higher-paying jobs and Millennials qualified to take them.
MG Properties is betting on OC. "We're bullish on the Orange County market, as demonstrated by our acquisition of the 768-unit Madison Park Apartments in Anaheim in March of this year," Mark says. The company partnered with Intercontinental Real Estate Corp to acquire Madison Park, which was the single-largest property deal in SoCal in terms of units since 2013. It has a particularly strong location near the I-5 in West Anaheim, between Disneyland and Knott’s Berry Farm.
Another speaker will be TruAmerica senior managing director Greg Campbell, who tells us the multifamily market will be extremely tight in Orange County in 2016, despite some new delivery of product, primarily in South OC. "Median home prices across the county are high, making it difficult for the 20-somethings to purchase homes in locations they find attractive," he explains. Thus rental demand will continue to increase, creating pressure on occupancy and rent levels.
Another speaker will be Raintree Partners managing director Aaron Hancock, who tells us the fundamentals in our markets—occupancy, rent growth—are as strong as he can remember. It should be another good year ahead for managing an existing portfolio, but at the same time, the market for new acquisitions is "extremely competitive and very expensive," he tells us.
The difficulty in finding new acquisition opportunities combined with very strong operating fundamentals make it the perfect time to invest capital into existing properties via renovation, Aaron notes. "We have plans next year to renovate unit interiors on 12 properties, in addition to comprehensive common area and amenity upgrades at several properties, and full washer/dryer installation at another," he says. Hear more about the market at Bisnow's 4th annual Orange County Multifamily Event, which will start at 8am on Thursday, Nov. 19, at the Fairmont Newport Beach. Sign up here.