The $600-million 1600 Vine, a new 375-unit apartment community at the
intersection of Hollywood and Vine, had a topping out ceremony on Dec. 3.
the mid-11% range by year end,” the report states. LA County as
a whole will see vacancy rise 100 basis points to 5.7% by year-end
2009, according to the report.
In Orange County, the vacancy will rise 90 basis points to 5.9%
by year-end 2009, the report predicts. In Riverside/San Bernardino
area, after rising 90 basis points last year, vacancy is projected to
push up another 70 basis points to 7.8% in 2009.
The good news is developers are responding to the Inland Em-
pire’s slowing demand for housing by minimizing completions and
multifamily permits. Some 260 apartments are expected to be delivered this year, after 480 units came on line in 2008, and construction overall has slowed from peak levels that averaged nearly 2,300
completions annually for the past five years, the report states.
Vacancy for the San Diego area is forecast to rise 40 basis points
in 2009 to 4.3%. And some investment opportunities could be generated in the area. The North Park and Hillcrest neighborhoods
will receive significant interest due to redevelopment efforts and
opportunistic funds will hunt for bargains among failed condo conversion projects that are coming to market at discounted rates in
the hard-hit eastern areas of the county, the report states.
SOME ACTIVITY
While multifamily transactions in 2008 were intermittent, to say
the least, some notable deals got done. Blackrock sold a 135-unit
apartment complex in Pasadena for $34.9 million, according to
Moran & Co., the broker on the deal. Brett Betzler, a senior broker in Moran & Co.’s West Coast office in Costa Mesa, recently
told GlobeSt.com ( http://www.globest.com/news/1309_1309/losange-
les/ 175834-1.html?type=pf) that the complex attracted 12 offers, primarily from institutional investors and REITs, with an institutional
buyer submitting the winning bid. The property, at 325 Cordova
St. and called the Arpeggio, consists of a four-story apartment complex over a two-level parking structure, with nearly 2,000 square
feet of ground-floor retail space.
Meanwhile, few big multifamily projects are set to come on line
MULTIFAMILY
SECTOR COVERAGE
Capital Markets
Green Outlook
Hotels
Industrial
Legal
Multifamily
Office
Retail
Technology
The news gathering capabilities and editorial talent of GlobeSt.com
and the entire Incisive Media real estate group have been combined to deliver
a more comprehensive multifamily market story.
Accessible via the Sector Coverage drop down menu on the GlobeSt.com home
page, this new Multifamily section was designed to provide readers with one
destination for streamlined information and enhanced marketing opportunities.
FOR EDITORIAL INFORMATION
Contact John Salustri
212.457.9740
john.salustri@incisivemedia.com
FOR ADVERTISING INFORMATION
Contact Donald O’Keefe
212.457.9695
donald.okeefe@incisivemedia.com
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