LOS ANGELES—“In a Downtown multifamily deal, the risk is totally different.” That was according to Douglas Eisner, co-founder and managing director of the Calida Group, who spoke on a panel titled: “The New Downtown: Thinking Beyond Multifamily” here last week at RealShare Apartments.
“When you are looking at the downtown deals, you really have to look at other risks,” he said. “You have to look at the lead times, the speed to market etc. You have to mitigate other risks to accommodate the downtown risks.”
When asked about redevelopment versus new construction, Eisner said that the speed to market is much easier. “You have the ability to test units right away. If you are doing adaptive reuse, you are trading speed and visibility, but you are adding other types of construction that are harder to quantify.”
The consumer is evolving so fast, added James D'Argenio, principal of acquisitions at the Bascome Group LLC. “We are trying to discuss more details these days, even down to paint schemes.”
The consumer wants continuity between buildings, he explained, adding that the advantage in doing rehab versus going from raw land is that “you are able to try to evolve as quickly as consumers are.”
Switching gears a bit, the panel discussed how the definition of “downtown” has changed. “We always talk about jobs, and while it is important, I don't think you have to be right next to it…it is more about what amenities you have nearby,” explained D'Argenio.
Jim Andersen, SVP of Trammell Crow Co., added that the driver for Downtown L.A. for example was having interesting places to go, not jobs. “When all these super cool old spaces started getting converted and were reused, it kick started.”
Over 60 high-level speakers and nearly 2000 were in attendance at this year's RealShare Apartments event. The RealShare Conference Series is produced by ALM's Real Estate Media Group, which also publishes Real Estate Forum and GlobeSt.com.
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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.
