LOS ANGELES—Koreatown is set to join Downtown, Hollywood and Glendale as the next bustling multifamily market. The submarket is undergoing gentrification and has experienced major growth. Like the other recently gentrified Los Angeles submarkets, development is central to Koreatown's growth. In May, residents will move into the Vermont, a 464-unit high-rise development at Wilshire Blvd. and Vermont Ave. from developer JH Snyder Co. The high-rise, luxury building is the first of its kind in Koreatown and will welcome a new set of tenants into the community. To learn more about the development and better understand Koreatown's growth, we sat down with Jerry Snyder, president of JH Snyder Co.

GlobeSt.com: What is driving growth in the Koreatown market?

Jerry Snyder: It has enjoyed a vibrant economy for years, but recent trends make the area extending around the Vermont one of the strongest in the city. This is especially true for a high-amenity, luxury apartment community such as ours. By 2017, Jones Lang LaSalle estimates nearly 25% of the population within five miles will have an annual household income of over $75,000. The neighborhood has very sophisticated shopping, dining and entertainment, and convenient connections to Hollywood and Downtown are starting to give it the vibrancy of parts of San Francisco or Manhattan. We're doing our part to add to those attractions, with amenities such as an extraordinary seventh-floor sky lobby and large garden and pool deck above the city.

The local population is extremely renter-driven. More than 87% of the people within one mile of the property are renters, compared to 57% within Los Angeles altogether.

GlobeSt.com: What are some significant development projects in this market, and how does development compare to Glendale, Hollywood and Downtown?

Snyder: The Mercury was one of the first condominium developments of the past decade. It was an adaptive reuse of a mid-century office building. It was followed by Solair, also condominiums but new-construction. Newer projects include the Line, a boutique hotel, built out of the former Wilshire Plaza hotel. In the last couple years, new developments have led to an increase in high-income households earning over $90,000 and a decline in low-income households. Some of the most important businesses here are the popular entertainment spots and nightclubs. Within one mile of the Vermont are more than 500 restaurants. New ones open up continually and add to the allure of the neighborhood. And you can't forget the investment in transportation infrastructure the city has made. Our corner sits across the street from the Red Line and Purple Line subway portal, which can take you to Downtown, Hollywood and the Valley almost in an instant. Hollywood and Downtown are certainly enjoying their own residential boom as well. Downtown now has a new group of large-scale residential projects in the pipeline, although very few of them are on the scale of ours (464 units). We're great believers in Hollywood as well. We have two significant office developments in the works there. In a way, the Wilshire Center/Koreatown area is the connection between all of these Los Angeles growth areas.

GlobeSt.com: Is new development or value-add more prominent in this market?

Snyder: Both types hold the promise of success. But in such a high-density area as the Wilshire Corridor there are very limited opportunities for new development. That's why our development team recognized this opportunity. We were able to secure this parcel at one of the key intersections in Los Angeles, which even during the recession we understood to be of high value. The Vermont is opening at a particularly advantageous time.

GlobeSt.com: What is the target demographic moving into this area?

Snyder: The best word to describe the general target is cosmopolitan. Demand has become very strong as the tenant mix has diversified. We are seeing strong interest from couples attracted to the 24-hour, urban environment. Some are just starting young families. Professions include business owners, engineers, doctors and import/export-related trades. Also, we're less than two miles from USC, whose students are looking for housing alternatives, and Southwestern University School of Law is practically next door. In some cases, these students are from overseas; in other cases, they are native Angelenos, but all are attracted to the fast-paced, high-density lifestyle.

GlobeSt.com: What are the average rents in this market now, and how have rental rates been fluctuating with the market's growth?

Snyder: It's interesting. There are actually no other high-rise apartment properties in the local vicinity. It's completely unique. And The Vermont's high-value amenities are also unique to the area. So we used comparables from Downtown and Hollywood. Jones Lang LaSalle observed strong rent growth for properties across the board from June to November 2013. On average, effective rents increased by 4.1% to $3,603, and price per square foot increased 4.6% to $3.40. Of course, Los Angeles in general remains a constrained market. Apartment vacancies have remained below 5% for eight consecutive quarters ending in third quarter 2013.

GlobeSt.com: What are the challenges of growth and development in this market? Have you encountered any frequent issues, and if so, what do you believe is the solution?

Snyder: This is the largest new luxury apartment building in the city, in one of the densest areas of the city. The Vermont has a floor-area ratio (FAR) of seven, and nearly 1 million square feet of space including the parking, which makes it one of the densest projects in all of Los Angeles. It's just the nature of this area. We worked with the Jerde Partnership design team to ensure that this relatively tight parcel achieved an elegant density. The seventh floor pool terrace and lobby is one example, elevating a whole range of amenity spaces to this level. This left room on the ground floor for wide setbacks from the street and some beautiful, spacious public areas that will be used by the entire community. On the whole, with its advanced transportation options and elegant, high-rise living, these solutions are a good fit for this neighborhood and for the future of Los Angeles.