LOS ANGELES—Laramar, a Chicago-based multifamily investor and owner, is focused on expanding its portfolio in high-density urban submarkets, according to Matt Levy, VP of acquisitions in Laramar's L.A. office. In an earlier story, GlobeSt.com reported that Laramar purchased a 14-property multifamily portfolio for $45 million from William Holdings. The portfolio has properties located in the Hollywood, Koreatown and Los Feliz neighborhoods, and is a good illustration of Laramar's broader investment strategy.

 “We are in a very competitive marketplace, and we are attracted to being in high-density urban locations,” Levy tells GlobeSt.com. “This portfolio in Hollywood, East Hollywood, Los Feliz and Koreatown certainly represents our urban strategy, which is to create critical mass in some of the best urban locations, not just in Southern California but in some of the most significant metropolitan areas, such as San Francisco, Denver, Chicago, Minneapolis and Miami.”

These submarkets have seen their share of activity this month, including the massive sale of the Vermont apartment building in Koreatown. Laramar's interest in these neighboring submarkets is the prime job centers, including several major hospitals, which provide a built-in tenant pool. “I believe that these are markets that have been strong for a long period of time, but as we see continued growth in Southern California and Los Angeles, both for job sectors and as movement back in to urban areas, these submarkets are precisely the areas where young professionals want to be,” he says. “Given the affordability gap that exists in Los Angeles between home ownership opportunities and urban rental opportunities, we can attract and provide a high-quality living experience in close proximity to these various job bases.”

To help attract tenants and young professionals, Laramar plans to conduct a multi-million value-add renovation program over the next several years as leases roll.

“We want to have a balance between providing approachable housing, meaning that the workforce will still be able to live in these properties, and improving the quality of these properties,” says Levy. Each property in the portfolio has a 98% occupancy, which will guide the renovation process; however, according to Levy, “in rent-control properties there is a 30% turnover at a minimum on the average every year.” He adds, “This is going to be an organic process, but we will certainly look to plan some of the renovation program upfront.”