LOS ANGELES—“In our core market of Santa Monica we are seeing a dearth of quality product coming to the market.” That is according to Pacific Palisades, CA-based Kimberly Stepp, principal of Stepp Commercial. Stepp tells GlobeSt.com that “This lack of inventory, however, has not caused investors to be goaded into paying inflated prices.”
While north of Wilshire product continues to trade at an all-time premium, she says, many investors have begun to balk at pricing for less-than-core assets. “The days of the 3% capitalization rate are nearing the end.”
When asked to look back on how the multifamily market has evolved over the past 15 years in celebration of GlobeSt.com's 15th anniversary, Stepp noted that since her career began in 1998, “there have obviously been peaks and valleys due to catastrophic events like September 11th and the Great Recession.” Santa Monica apartment values, however, she adds, have been able to hold their value due to the City's proximity to the ocean, the lack of available product, and Santa Monica's stringent development guidelines. “Further, the Light Rail and the explosion of Silicon Beach have begun to shape Santa Monica's future.”
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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.
