Tough For-Sale Housing Market Helps California Real Estate Company Add More Than 6,000 Rental Units to its Roster
- Mar 21, 2008
By Erin Brereton, Content ManagerFoster City, Calif.–Declining home sales may mean trouble for real estate agents, but in some areas–such as Southern California, where Foster City, Calif.-based Legacy Partners Residential, Inc. added 6,450 units to its property management portfolio during 2006 and 2007–they’re giving the rental market a big boost. Legacy’s 2007 additions, located in Los Angeles, Orange and San Diego county, bring the company’s Southern California and Arizona roster to 56 properties with nearly 11,000 units under management.Because the Los Angeles area consists primarily of renters–60 percent compared to 32 percent nationwide–Legacy expects demand for rental apartments to grow, according to Scott Morrison, Legacy’s Senior Vice President overseeing the region.”We are seeing increased demand and lower vacancy rates in all markets, especially for Class A properties, and expect to see further tightening as the slump in for-sale housing deepens and new construction is slowed by builders experiencing problems getting financing,” says Morrison. “Job growth and other demographics suggest that rental housing will be very strong in Southern California in 2008 and beyond.” Legacy’s 2007 Los Angeles additions include Clinton Apartments, The Title Guarantee & Trust Building, 435 S. Detroit Street, 630 S. Hauser Street, Pegasus and Pacific Place.The company’s other new units are in the Stadium Lofts in Anaheim, Calif.; Legacy at Westglen in Glendale, Calif.; The Verandas in West Covina, Calif.; Alta Court in Irvine, Calif.; Sunset Plaza in West Covina, Calif.; Crescent Park in Playa Vista, Calif. and The Lofts at NoHo Commons in North Hollywood, Calif.The units were added over the past two years under third-party fee management contracts which, according to Legacy, has been a central factor in its recent growth. The company says it constantly scouts new portfolios and condo projects that may convert to leasing due to the slowdown in for-sale housing. Legacy expects to add 2,400 more units to its portfolio this year.Foster City, Calif.-based residential and commercial real estate developer Legacy Partners Residential, Inc. has managed and/or developed nearly 11,000 market-rate, affordable and senior apartment units, in addition to nearly 400 boat slips, 500 lofts, nearly 500 condo units and 201,000 square feet of retail space.