THE BETTER BUILDINGS CHALLENGE EXPANDS TO APARTMENT BUILDINGS

June 29, 2014 on 1:28 am | In Government, Green, Investment Opportunities, New Developments, Of Local Importance, Problem Solving, Trends, Uncategorized | 3 Comments

by Jodi Summers

In 2014, the Better Buildings Challenge has expanded to include multifamily properties.

“The expansion of the Better Buildings Challenge to include multifamily housing represents an important step toward achieving the goals laid out in the President’s Climate Action Plan,” Observes HUD Secretary Shaun Donovan.

The goal of the Better Buildings Challenge when it was launched in 2011 was to make America’s commercial buildings 20% more energy efficient by 2020. The challenge asked corporate chief executive officers, university presidents, and state and local leaders to make a public commitment to energy efficiency. Through the Better Buildings Challenge, the U.S. Department of Energy (DOE) is highlighting leaders that have committed to upgrading buildings across their portfolio, and providing their energy savings data and strategies as models for others to follow.

“More than 50 multifamily owners from across the nation have committed to the Better Buildings Challenge,” shares Donovan. “These housing leaders understand that it represents an opportunity for them to reduce their long-term energy costs, support innovative technologies, create good jobs, and help shape healthier communities and neighborhoods,”

The City of Los Angeles has set a goal to achieve 20% energy savings across 30 million square feet of existing buildings by 2020 as part of the Better Buildings Challenge, a national leadership initiative sponsored by the U.S. Department of Energy, which calls on public and private sector leaders to take action and demonstrate the benefits of modernizing America’s existing buildings.

Achieving this goal will significantly reduce operating costs while freeing up capital for more productive uses, enhancing tenant comfort and productivity, boosting market competitiveness, creating over 7,000 high-quality local jobs, and averting annual CO2 emissions equivalent to taking over 18,000 cars off the road.

“Over the last two years, President Obama’s Better Buildings Challenge has helped drive greater energy efficiency further and faster, save families money and give U.S. businesses an edge in the global market,” said Energy Secretary Ernest Moniz. “By partnering with the multifamily housing industry as well as state and local governments, utilities and manufacturers, we can continue this progress – cutting carbon pollution, fostering economic growth and building a cleaner, more sustainable energy future.”

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http://www.multifamilyexecutive.com/energy-efficiency/owners-operators-group-welcomes-the-better-buildings-challenge_o.aspx?dfpzone=home&utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=MFEBU_010214&day=2014-01-02

http://www.socalgreenrealestateblog.com/?p=1866

http://energy.gov/articles/obama-administration-expands-better-buildings-challenge-multifamily-housing-launches-new

http://www.socalgreenrealestateblog.com/?p=3110

http://la-bbc.com/about/

http://www.socalmultiunitrealestateblog.com/?p=2636

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WHEN HOUSING AFFORDABILITY IS LOW – APARTMENTS ARE STRONG

June 16, 2014 on 11:48 am | In Buyers, Charts + Statistics, Curious, Economy, Fascinating Information, Investment Opportunities, Market Snapshot, Of Local Importance, Trends, Uncategorized | 1 Comment

from Jodi Summers

Housing affordability is why you can never go wrong with multifamily properties in Los Angeles – only 23% of homes for sale are affordable to the middle class.

And our affordability is rather peachy compared to our sister city, San Francisco. Trulia notes that only 14% of homes for sale in San Francisco are affordable to the middle class, -even though median household income is higher in San Francisco than almost anywhere else in the country.

Notice that 7 of the 10 least affordable markets are in California. We are rounded out by New York, neighboring Fairfield County, CT, and Honolulu. As you might expect, in our coastal markets – Los Angeles, Orange County, Ventura County, and San Diego – less than one-third of homes are within reach of the middle class. But, everyone has to live somewhere – it might as well be in one of your buildings.

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http://www.trulia.com/trends/2014/05/middle-class-may-2014/

http://www.socalmultiunitrealestateblog.com/?p=2682

SOCAL MULTIFAMILY REAL ESTATE SNAPSHOT JUNE 2014 – DOWNTOWN RENTALS ROCK

May 28, 2014 on 10:47 pm | In Charts + Statistics, Experts Say, Fascinating Information, Green, Investment Opportunities, Market Snapshot, New Developments, Of Local Importance, Rents, Trends, Uncategorized, WOW | 7 Comments

by Jodi Summers

Young people are interested in a different kind of lifestyle than earlier generations, thus

Americans are experiencing an urban renaissance of unanticipated proportions. Realizing that now is the time for experience, college graduates are moving to cities. Now, multifamily properties account for 40% of all new construction. It’s time for you to get in the game.

Recently released census data shows that in 2014 metropolitan areas across the country grew at a faster rate than the rest of the country, with cities like Austin, Texas and Seattle, Washington growing quickly.

In Los Angeles, according to Loopnet, multifamily property sales prices have risen +1.6% in the first quarter to a median price of $177,256.80 per unit. This is a +15.8% rise from 1Q 2013.

“There’s been a surge in urban apartment building,” says chief economist for the National Association of Homebuilders, David Crowe. “The 25- to 34-year-old age group is focused on living near their peers. They want be socially engaged and live near work. They want to reduce their automobile use. All of those things aim at high-density, urban-type living.”

Nielsen Research’s latest whitepaper on Gen Y and Millennials shares these key findings:

Those aged 18 to 27 have a median income of $24,973; meanwhile, older Millennials (28 to 36) make closer to $48,000.

  • Currently, 36% of Millennials rely on parents for financial support.
  • Millennials are the most racially/ethnically diverse generation: 19% are Hispanic, 14% are African American, and 5% are Asian.
  • 62% of Millennials prefer to live in mixed-use communities.
  • Green is still in. A whopping 60% of Millennials are willing to pay more for a product if they think it’s good for the environment.

And more curiously…

  • This generation makes up about 14.7% of Americans with assets of more than $2 million.
  • 8% of Millennials own their own business.
  • Washington D.C. is home to some of the most wealthy Millennials (those earning more than $100,000 per year), followed by San Francisco.
  • Only 21% of Millennials are married.

“Unlike their parents, who calculated their worth in terms of square feet…this generation is more interested in the amenities of the city itself: great public spaces, walkability, diverse people and activities with which they can participate,” observes Ellen Dunham-Jones, a professor of architecture and urban design at Georgia Tech.

With student-loan debt hampering their opportunities for homeownership, this demographic will continue to hold sway on the apartment industry for years to come. There are currently more than 77 million Millennials across the nation, a number just about on par with Baby Boomers.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

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http://www.multifamilyexecutive.com/demographics/understanding-gen-y-neilsen-study-takes-a-deep-demographic-dive_o.aspx?utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=MFEBU_051514&day=2014-05-15

http://www.socalmultiunitrealestateblog.com/?p=2683

http://time.com/72281/american-housing/

http://www.multifamilyexecutive.com/demographics/striking-a-unit-balance-for-both-baby-boomers-and-gen-y_o.aspx?dfpzone=home&utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=MFEBU_051514&day=2014-05-15

http://www.socalgreenrealestateblog.com/?p=3395

http://www.loopnet.com/Los-Angeles_California_Market-Trends?Trends=SalePricesFS,TotalAvailableForSaleFS,NumberOfListingsFS,TotalNumOfUnitsFS,TotalSFAvailableFS,AskingRentsFL,NumberOfListingsFL,TotalSFAvailableFL&PropertyTypes=Multifamily

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YOUR OLD OFFICE? SOMEBODY LIVES THERE NOW. THE ADAPTIVE REUSE OF OFFICE BUILDINGS

May 14, 2014 on 8:55 am | In Charts + Statistics, Economy, Fascinating Information, Green, Historic Properties, Investment Opportunities, New Developments, Problem Solving, Trends, Uncategorized | 1 Comment

by Jodi Summers

You’ve heard about all of those fabulous loft conversions in downtown Los Angeles – old office buildings and factories that have been renovated into apartments and condos. That’s what’s happening with a lot of that extra office space…that’s in cool buildings.

In 2012, nationwide, office stock shrunk in a third of the 54 top U.S. markets. Buildings worth saving are being converted, while lesser buildings are being demolished. The result is that the net inventory has dropped by about 21.6 million square feet > or 0.3% of inventory. In Los Angeles, available office space has declined by -16.2% according to Loopnet.

Over the next four quarters, approximately 11 of the top 54 U.S. metros and almost half of the 1,400 submarkets in those metros will have a net loss of inventory.

Conversion to residential usage is the most prominent reason that an office building is removed from inventory.  Condo and apartment conversions comprise 34% of the lost office space, according to CoStar.  Additionally another 13% of office space has been demolished to make way for new residential construction.

In high density urban areas where housing is needed, multifamily repositionings benefit both owner and user. The ideal conversion candidate – transit-accessible office structures built circa 1930 with 22,000-square-foot floor plates.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

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http://www.costar.com/News/Article/Didnt-That-Used-to-Be-an-Office-Building-/153464?ref=/News/Article/Didnt-That-Used-to-Be-an-Office-Building-/153464&src=rss

http://www.marcusmillichap.com/Services/Research/Default.aspx#2

http://www.socalgreenrealestateblog.com/?p=2983

http://www.loopnet.com/Los-Angeles_California_Market-Trends?Trends=TotalSFAvailableFS&PropertyTypes=Office

http://www.socalmultiunitrealestateblog.com/?p=2563

http://www.thekorgroup.com/images/900×430/xo4w7030_web.jpg

http://www.citygro.ws/projects/ace-hotel-los-angeles/posts/the-building-is-totally-gutted

http://www.youtube.com/watch?v=Rx28g0aqfIk

http://www.socalofficerealestateblog.com/?p=2435

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SOCAL MULTIFAMILY REAL ESTATE SNAPSHOT MAY 2014 ~ RENTS AS BIG AS A MORTGAGE

April 29, 2014 on 9:11 pm | In Buyers, Charts + Statistics, Economy, Fascinating Information, fUNNY...mONEY, Investment Opportunities, Market Snapshot, New Developments, Rents, Sellers, Trends, Uncategorized, WOW | 5 Comments

by Jodi Summers

See all those new units going up around town? They’ll soon be for rent. So, although Los Angeles apartment owners will continue to enjoy relatively tight vacancy in 2014, new construction will be applying pressure on operations in the western stretches of the county by the end of the year.

The new canyons of Marina del Rey are something to ponder as research firms like Marcus & Millichap expect top-tier rental demand to be lower than the pace of construction. New apartment development around Los Angeles will see 6,000 rentals finished – a 0.6% stock gain for the 2nd year in a row.

A plethora of high priced units are expected to lift the overall vacancy rate around town and push management to offer concessions to attract elite renters. It is anticipated that vacancy rates will rise 4.3% this year. By year-end 2014, effective rents will reach $1,726 per month, an annual rise of 1.2%.

Expect job growth in the county to accelerate bringing overall payrolls within reach of the pre-recession level for the first time in 7 years…so tenants can hypothetically afford those lofty rents…or not so much. ..

Rents in L.A. are close to a mortgage payment. Investment savvy Millennials who don’t have a half-million to spend living at the beach are going east to Culver City, Mar Vista and the historic Village Green – owning their homes, building their financial portfolios. Los Angeles zip codes like 90034, 90066, 90025, 90230, 90016 and 90046 are well-located equity-building locations.

For investors, average cap rates are near historical lows, which means we could see more inventory; but keep in mind, the current West Side buying frenzy is attributable to unproductive alternative investment vehicles rather than property fundamentals. An abundance of cash, fear of a stock market correction, and low interest rates favor the acquisition of low-yielding apartments. When interest rates move higher, the experts expect investors to rethink the current strategy and explore alternative options.

Additionally, first-time investors are drooling to get into the Silicon Beach multifamily market, and are willing to accept early returns below 5% in long-term hold plays.

Stiff competition is driving desirable buildings are going into multiple offer scenarios, driving down cap rates, leaving many investors reliant on Southern California real estate renowned rapid appreciation.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

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http://www.marcusmillichap.com/research/researchreports/reports/2014/01/06/los-angeles-apartment-research-report

http://www.socalmultiunitrealestateblog.com/?p=2678

MORE RESIDENCES FOR DOWNTOWN L.A. THANKS TO ADAPTIVE REUSE

April 15, 2014 on 1:58 pm | In Curious, Fascinating Information, Green, Historic Properties, Money Saving Opportunities, New Developments, Of Local Importance, Problem Solving, Recycling, Uncategorized, WOW | 3 Comments

Edited by Jodi Summers

Bravo to the City of Los Angeles. Through innovative public policy and creative private development, L.A.is demonstrating how older buildings can be repurposed and repositioned for the new economy while reducing carbon emissions.

Believe it or not, Downtown Los Angeles contains one of the nation’s finest collections of early 20th century architecture. Most of these buildings sat vacant for decades, until a carefully targeted Adaptive Use Ordinance (ARO) removed regulatory barriers, provided incentives, and helped make it possible to repurpose more than 60 historic buildings over the past 14 years as new apartments, lofts, and hotels.

But many more buildings remain empty or underused in the downtown area and nearby commercial districts.

 

A recent report from the Urban Land Institute and the National Trust for Historic Preservation’s Green Lab concludes that more than 10 million square feet of space in the city’s urban core is currently vacant. The report, Learning from Los Angeles, was presented to Mayor Eric Garcetti this morning, at an event organized by the ULI Los Angeles District Council. It describes strategies that build on the success of the ARO to unlock the economic and community development potential of underused older buildings. The report documents demolition, building, and vacancy trends throughout the city and recommends strategies for removing regulatory barriers, streamlining approvals, and providing incentives to make building reuse easier to accomplish.

Conversations organized by the Preservation Green and ULI Los Angeles identified key barriers to building reuse and recommend solutions to overcome these obstacles. The Los Angeles Conservancy, a key partner in this effort, served on the project Advisory Committee along with practitioners in real estate development, planning, design, construction, community revitalization, and local government.

Learning from Los Angeles is the first in a new series of research and policy reports being developed by the Preservation Green Lab through the Partnership for Building Reuse, a joint effort of the National Trust and ULI. Launched in Los Angeles in 2012, the Partnership for Building Reuse is designed to foster market-driven building reuse in major U.S. cities through dialogues with community stakeholders about building reuse challenges and opportunities.

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http://blog.preservationleadershipforum.org/2013/10/10/learning-from-los-angeles/#comments

http://www.socalofficerealestateblog.com/?p=2458

http://www.socalgreenrealestateblog.com/?p=3018

http://www.socalmultiunitrealestateblog.com/?p=2592

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