JPI Eyes $125M LA Project
The community is on track for completion in 2029.
JPI has acquired a site in Los Angeles’ South Bay with plans to develop an upscale 257-unit community. Chuo Nittochi America Corp., a Tokyo-based investor, is partnering with the developer on the $125 million project.
Groundbreaking is scheduled for September, with completion anticipated in March 2029.
Normandie Apartments will rise in Gardena, a city about10 miles southeast of Los Angeles International Airport. Located at 16911 S. Normandie Avenue, the community will deliver a mix of studio, one-, and two-bedroom units.
Amenities will include a resort-style pool and spa with cabanas, a rooftop deck, and a fitness center. Also planned are a clubhouse, library and an open-air kitchen and barbecue area.
With only a handful of new apartment deliveries in recent decades, the South Bay is a supply-constrained submarket, according to JPI. That is despite housing demand anchored by the aerospace and defense industries, including Raytheon, Lockheed Martin, Boeing, and Northrop Grumman facilities.
JPI is an active developer nationwide. In June, the company closed on a sites for communities in Austin, metro Orlando, Durham, N.C., and McKinney, Texas. The projects range in size from 323 to 400 units.
Chuo Nittochi America is likewise active in U.S. multifamily development. In a joint venture with RXR Realty, the company is building Ave Horsham, a 274-unit project in Montgomery County, Pa. In February, Chuo Nittochi announced plans for Render Tucker, a 312-unit development in suburban Atlanta. The company will develop the property in collaboration with Crescent Communities.
LA Multifamily Holds Steady
Construction momentum is solid in the Los Angeles market, with a total of 24,121 units underway in April, according to Yardi Matrix data. During the first four months of this year, developers added 1,995 units. The market has added an average of nearly 11,500 units annually since 2018, with a significant uptick to 13,000 units over the past three years.
Demand has abated slightly, but the LA market is stronger on that metric than the national average. Occupancy for stabilized assets in the metro edged down 30 basis points year-over-year to 95.7 percent in March, which is above the 94.2 percent national figure.
This month, the Olson Co. acquired a two-building medical office campus in Monterey Park, Calif., from BH Properties for $24.9 million. The vacant buildings will be replaced by Potrero Grande & Atlas, a 159-unit townhome community.
In July, the Los Angeles City Council approved Fourth & Central, the $2 billion redevelopment of a downtown industrial property. That project will include nearly 1,600 residential units and 550,000 square feet of commercial space.
