Solar: Opportunities must meet portfolio (100 units and above) and location objectives, i.e. proximity to transportation (BART and Caltrain), retail and jobs. Our focus is currently in the East Bay, Peninsula and South Bay.

GlobeSt.com: Are there pocket areas of Northern California that are most appealing to Alliance's portfolio mix or will you consider any area in the region if there is a good deal/fit to be had?

Solar: In addition to the East Bay, Peninsula and South Bay, Sacramento is particularly attractive to us because there is a large population with a good demographic pool, rents are increasing, and there is state government and agriculture to support job requirements. We are cost-conscious when developing in Sacramento to ensure we stay within the comparable rent range.

GlobeSt.com: What types of residential and mixed-use community developments are you currently managing in the Northern California region?

Solar: Our developments are diverse. We are involved with Class A high rise as well as garden, with a 200- to 300-unit average number. A retail component is often part of the mix. Nationally, we have a $9-plus billion portfolio of 82,000 units in 29 metropolitan markets and in the West, 14,000 units are in Southern California and 11,500 units are in Northern California.

GlobeSt.com: What types of challenges or opportunities are you finding in deal sourcing and negotiating?

Solar: The challenges are found in increased competition from both condo and office developers, as well as those from overseas. Land prices have also doubled in some areas. However, jobs have improved so we are seeing areas near BART, such as Oakland, Dublin and Berkeley, make good sense, as do areas in the South Bay near CalTrain.

GlobeSt.com: What is your philosophy when it comes to design, construction and operations?

Solar: We have a philosophy of designing residences to appeal to renters who have many choices but choose to live in our communities. We build projects that align with comparable rents in any given area, using long-lasting, energy-efficient materials that will save renters money over time. Our properties must stand out in terms of upgraded amenities, such as outdoor living areas with rooftop decks, public art, dog parks and spas, hobby rooms, and nearby retail.

GlobeSt.com: What is your exit strategy?

Solar: On average, it is three to four years, although we consider long-term holds if an investor is amiable.

GlobeSt.com: Is Alliance entering into the senior housing development arena?

Solar: Yes, we just announced that venture with the goal of scaling the platform to deliver $1 billion+ worth of senior housing projects during the next three years. We feel well positioned to take advantage of this market opportunity given our national infrastructure of real-estate offices with leading capabilities — particularly in development and acquisition rehab — and our focus on the luxury segment.

During the past 15 years, Alliance has become one of the largest private apartment owner/developers and the ninth largest management company in the nation with 34 regional offices.