While some California multifamily investors want to chase properties in other regions of the country, Los Angeles-based full-service commercial real estate investment and operating company GPI Cos. likes its hometown.
GPI recently completed a luxury rental property at 9001 Santa Monica Blvd. in West Hollywood and is building two other residential properties in the LA area: the 201-unit Overland & Ayres and a 17-unit condominium project, The Rosewood Residences.
However, the firm is also making acquisitions, recently purchasing the Lofts at NoHo Commons, a 292-unit community in North Hollywood. The transit-oriented, mixed-use property was built in 2006 and renovated in 2017.
The podium-style Lofts at Noho Commons is a low-density project with a large amenity deck. It has abundant outdoor space and open-air corridors that differentiate it from its competitive set, according to GPI. Every unit has a loft-style design with 11- to 14-foot ceilings and open floorplates.
GPI is hiring Greystar to manage the property, which will undergo some renovations. “Some anticipated improvements are refinishing the pool and spa area, including upgrading the furniture; renovating and expanding the fitness center; and upgrading elevator cabs and common lobbies,” AJ Taylor, a director at GPI, told Multifamily Dive.
Strong demographics
For Taylor, the location is one of the major selling points in the North Hollywood area.
“Lofts at NoHo Commons is directly adjacent to the Shops at Noho Commons, a neighborhood retail center that includes 24 Hour Fitness, Jamba Juice and more,” Taylor said. “In addition, residents are within walking distance to countless popular entertainment, nightlife, shopping, dining and everyday needs throughout the NoHo Arts District.”
The types of residents North Hollywood attracts are also a draw for GPI. “Young professionals and entertainment industry executives are drawn to the location given its immediate access to the Metro B and G lines and multiple freeways,” Taylor said.
The strength of the NoHo neighborhood is shown in the data, according to Taylor. Over the past decade, the area has produced 3.85% annual growth. He said the 2,582 new units built over the past seven years have been absorbed quickly, and there are only 1,348 units currently in the development pipeline for the foreseeable future.
“Outside of the COVID-19 pandemic, average occupancy in NoHo has been 96% and never previously dipped below 95%,” Taylor said. “During the worst parts of COVID, average occupancy in North Hollywood only dipped to 93%.”
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