LOS ANGELES — Multifamily owners today face enormous obstacles, yet they are resilient, successful, and ready to respond quickly to upcoming upheavals. The panelists at GlobeSt’s “View From the Top” discussion all agreed on this.
Angela Kralovec, GVP Asset Management of Essex Property Trust, said they are looking into ways to improve property density and possibly add ADUs to their properties, when describing the company’s approach to reinvestment and opportunities.Rent growth has been slow and decelerating in many regions, according to Noah Hochman, Co-Chief Investment Officer and Head of Capital Regions at TruAmerica Multifamily, who provided an important perspective on the present national situation. He stressed the value of a deliberate renovation approach by declaring, “We are no longer renovating for the sake of renovating.”
Hochman says they have trimmed back and delayed upgrades in several markets and that they now concentrate on three to four renovations every month, pointing out that the repairs are performed on units most in need of repair, as opposed to ten per month. Avoiding over-renovation is the key. Today, we give property turnovers more thought.President of MG Assets and panelist Jeff Gleiberman said that their organization is reevaluating its approach to value-add assets. According to the panelist, the newer homes they’ve bought have outperformed those undergoing value-add improvements, according to the report.
The current environment, according to Larry Scott, Senior Vice President of Development at Fairfield Residential, has substantial problems with supply chains for insurance and appliances.
“We are striving to strike a balance between maximizing rent increases and fairness within the context of the market, rather than pushing for the highest increases,” Kralovec said with regards to Essex’s dedication to tenant retention.
