If revitalization has a pattern in Los Angeles, North Hollywood is hitting its peak. The submarket landed on the radar of value-add investors in the past few years, and now FMB Development is breaking ground on new construction luxury residences. The project is certainly a sign of the rising demand and evolution of the market in just a few short years.
“North Hollywood is one of the city's hottest and fastest-growing communities. We see strong demand for luxury product in the area, and a scarcity of options for the consumer,” Ilan Kenig, CEO of FMB Development, tells GlobeSt.com. “This has created an opportunity for us to fill that gap.” Thanks to this rapid resurgence, FMB is building a 28-unity luxury mixed-use apartment complex at 11436 W. Hatteras Street. It will include 450 square feet of first floor retail space.
North Hollywood was an ideal market for revitalization, because it has a public transit line that connects to both Hollywood and Downtown L.A. With new restaurant and retail openings, it quickly became a live-work-play market akin to popular and more expensive markets in the city. “North Hollywood offers walkability, a close-knit neighborhood, and easy access to jobs and public transit. It is also one of the most creative corners of the city, boasting more than 20 theaters and other cultural offerings within a square mile,” says Kenig. “These are the kinds of amenities that are increasingly attractive for the rental market across different demographic segments. It has driven strong demand in the market.”
As a result, the North Hollywood is not only an attractive place for this type of project, but it also provides attractive returns to investors. Land is less expensive, but demand is increasing and so are rents. “We invest in the most sought after destinations in Southern California, in deals that provide very attractive returns for our investors,” adds Kenig. “This project met both criteria. For more than a decade, the City of L.A. has been working to cultivate this area as a hub for culture and community. We believe in that vision, and have been excited to invest in it through this property.”
Kenig wants the project to cater to the changing demographics. The five-building project will include one- and two-bedroom units and amenities common to dense urban neighborhoods, like a rooftop deck. It is also walking distance to the metro. “Our Hatteras St. homes will reflect the creative design sensibility of the area and the growing demand for luxury homes that cater to the expanding population,” he says. “FMB is invested in being a good neighbor in North Hollywood and maintaining the integrity and unique character of this very special community.”
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Kelsi Maree Borland
