LOS ANGELES-Blake Rogers, managing director with Charles Dunn Co. out of the firm's West Los Angeles office, recently chatted with GlobeSt.com on L.A. multifamily, development and “making it in the business. Rogers specializes in the sale of multifamily properties and land for development within the greater Los Angeles region and at the age of 28—with just more than four years as a commercial real estate broker—Rogers has closed transactions consisting of more than 1,600 units; representing in excess of $195-million in multifamily properties and land for development. In June, Rogers was recognized by sister publication, Real Estate Forum magazine, as one of Tomorrow's Leaders in Southern California.
GlobeSt.com: You have been a part of a lot of transaction activity in your short career—what has been the key to your success?
Rogers: I have been fortunate to train with some of the most successful brokers in the business. There are three key principles and habits I learned from these “power brokers” that have been crucial to my success. The first habit is consistent and constant prospecting. Every successful broker in the business will tell you, that without a rigorous and disciplined prospecting schedule, they would not have survived in this business. No matter how many deals I'm processing, I always make time to get on the phone and cold call. Another principle that has been key to my success is a devotion to being up-to-date on market knowledge. Every morning without exception, I read several real estate news websites, blogs and newsletters. My clients want to know what's happening with other deals in their markets and adjacent markets, and I pride myself on being a resource to them. Lastly, persistence has been a key factor in my success. Owners appreciate brokers that don't give up. I can remember at least two significant listing assignments we won as a direct result of the seller remembering me from the dozens of voicemails I left them over the course of many months.
GlobeSt.com: What advice would you give other young brokers out there trying to make it in the business?
Rogers: In my opinion, the single hardest thing about our business is endless rejection. This is especially the case in the beginning when brokers are starting to build relationships, and have little to no credibility. My advice is simple: don't give up and stay on the phone. The next call could be your next deal and the only way to know is to make that call. Remember, the difference between hot water and boiling water is just one degree!
GlobeSt.com: Tell me a bit about your local market--the multifamily market in greater Los Angeles. What areas are hot?
Rogers: The Greater L.A. multifamily market as a whole is very tight. The amount of inventory, which has been low is increasing, and the appetite for deals throughout Los Angeles and Orange County, in all asset classes, is very healthy. Having sold several buildings over the past few months within West L.A. at record-breaking prices, this submarket as usual is garnering the highest sales prices with cap rates hovering around 4%. We have seen several deals close at numbers that surpass the peak value levels of 2006 and 2007.
GlobeSt.com: What about land for development? What opportunities are developers looking for these days?
Rogers: Fully entitled land for development is highly sought after, as developers are doing their best to get shovels in the ground as quickly as possible due to rising interest rates and construction costs. Historically, land for development encompasses about 20% of the business our team does. Currently, 75% of our escrows are land for multifamily development. Of those deals, only one is not contingent on entitlements. This is further evidence that developers are antsy to begin construction, and not willing to take on entitlement risk, or market risk associated with the time to entitle and build new projects.
GlobeSt.com: What trends do you see happening in your market over the next six months and why?
Rogers: Over the next six months, we expect cap rates and values to remain stable, but we anticipate more transaction velocity. The consensus is that cap rates have hit their lows now that interest rates have begun to rise. Owners that have been holding off on selling, with the hope that values will continue to rise should begin to pull the trigger.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
