Part 1 of 2
TruAmerica recently entered new markets in Las Vegas, Portland and Salt Lake City so GlobeSt.com took a moment to chat with the firm's COO, Lynn Owen about which markets she believes has the best value add opportunities, and why studying the market is so important when considering a potential rehab project. Owen was recently among the top SoCal Women featured in Real Estate Forum.
GlobeSt.com: Lynn, TruAmerica is one of the most active buyers of multifamily properties in the United States. Which Southern California markets do you believe have the best value add opportunities?
Lynn Owen: Yes, we are an active value add buyer, acquiring class B or better properties where we can add value through thoughtful renovation and/or by improved operating performance and still fulfill our mission to provide affordable, quality workforce housing. Our targets are typically near major employment centers and key transportation routes in core Western US markets. Currently, we like North San Diego County, the hot markets of Marina del Rey and Playa Vista, as well as Koreatown, where we have had huge success with The Vermont, our 464 unit new construction high-rise we purchased in joint venture with Capri Capital. Also making a big comeback are Oxnard and Ventura.
GlobeSt.com: What are some of the main factors that you use when evaluating a potential rehab project to determine the scope of your rehab?
Owen: It is critical to carefully study the market. We take the time to tour comparable properties, look at and compare the other renovations to see what worked and what didn't. It is also important to look closely at the development pipeline to see where the rents will eventually land. Working from that foundation, we operate on the premise of not over-improving in order to find our true rent cap for the sub-market. We back into the scope from there.
Do you generally implement test rehab units before starting a full blown rehab project?
Owen: Yes, especially if it is a new market for us. Sometimes the first ones are just home runs and we are quickly off and running. Others we tweak a bit, push rents a bit, and take a month or two of testing the market to find the sweet spot—especially if the market is hot and seems to move quickly.
Check back in the next day or so for more from this exclusive interview with Own, where we dive into new trends and amenities that have the biggest band for the buck in value-add deals.
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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.
