Blackwell: The multifamily market has continued to strengthen in Santa Ana due to an increased level of renter demand from tenants, including Millennials, looking to live close to Downtown. People want to live near amenities and entertainment with an ability to walk out of their apartment and easily access an array of restaurants, shops and services. In and around downtown Santa Ana, approximately 11 major residential and mixed-use development projects have come on line, CBRE research shows. Additionally, about 20 new restaurants have opened in the past two years, largely due to the recent arrival of 4th Street Market and McFadden Public Market, according to CBRE research. Downtown Santa Ana's strong revitalization is in great part supported by strong demand for the relatively affordable office, retail and industrial spaces compared with Orange County's average prices.

GlobeSt.com: Is the revitalization driving up prices for apartment sales?

Blackwell: We have seen strong demand from investors who believe that this submarket will continue to strengthen. We have experienced multiple competitive offers for each property listing in this area and are convinced Downtown Santa Ana will continue to develop, keeping investor interest and prices at a high level.

GlobeSt.com: What does the development arena look like in this market?

Blackwell: From our perspective, the development arena remains vibrant. The majority of the projects are redevelopments, such as 888 North Main, Tancredi-Chalan, Tom's Trucks and Elks, according to CBRE research. They namely are office-building-to-residential/commercial-mixed-use conversions. Due to Downtown Santa Ana's affordability and ongoing revitalization, major developers such as Caribou Industries, AMCAL, Olson Co., City Venture and Lyon Communities have been joined by newer entrants from outside the area such as Wermers, AMB and Meta Housing, our research shows. In the coming years, we expect to see more shops and restaurants open in the area and additional residential projects emerging, particularly from the adaptive reuse of office buildings.

GlobeSt.com: How are rental rates being affected?

Blackwell: Rental rates are at all-time highs, and many investors feel there is still room for further rent growth given the strong fundamentals in this market. As rents continue to climb, we could see some pullback in rent projections in the near future since some areas have already seen double-digit rent growth in the past 12 to 18 months. Overall, the market is very bullish on Downtown Santa Ana, and we anticipate a strong rental market throughout 2017 and into 2018.