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IRVINE, CA—Even with ongoing multifamily development in Orange County, the market will continue to be undersupplied by approximately 40,000 apartment units over the next five years, JLL's Christopher Arvizu tells GlobeSt.com. As we recently reported, Arvizu has joined the firm's capital-markets team as a SVP, focusing on multifamily investment sales in Orange County and Inland Empire. We spoke with Arvizu about his new role and what investors are seeking in the multifamily market now.
GlobeSt.com: What are your goals in your new role with JLL?
Arvizu: As a multifamily investment advisor at JLL, it is my goal is to create and preserve wealth for private clients and institutional investors. My aim is to provide our clients with in-depth market research, expert asset analysis and sophisticated investment strategies. In addition, as part of JLL's full-service platform, I am able to help clients secure debt and equity through our JLL financing team. Through this collaborative approach, our clients benefit from a wide variety of advisory services, which enables them to make sound multifamily investment decisions.
GlobeSt.com: What types of OC multifamily properties are investors most interested in now?
Arvizu: The fundamentals and demographics in Orange County continue to remain strong; as a result, the demand for multifamily product of all asset classes in the region remains high. Most of the multifamily transactions in Orange County vary from core-plus to value-add, with limited core opportunities and with interest being high on each investment type. From a development perspective, we see class-A multifamily projects being located near transportation centers and established entertainment hubs. As these sites become more challenging to acquire, developers are seeking opportunities in traditionally B and C locations or attempting rezone urban infill commercial sites to multifamily.
GlobeSt.com: Is the philosophy more buy and hold or buy, redevelop and sell?
Arvizu: Investment philosophies are unique to each client. Capital sources may be different for each multifamily investor or may vary from deal to deal and influence whether to hold or sell an asset. In addition, the asset location and how that asset in financed gives some insight into their investment strategies.
GlobeSt.com: What else should our readers know about OC multifamily investment?
Arvizu: As the median home price moves north of $700,000 and with less than 50% of Orange County residents owning their home, multifamily investors will continue to benefit from the demand for rental housing. Even with ongoing development in Orange County, the market will continue to be undersupplied by approximately 40,000 units over the next five years.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
