"California real estate giant Irvine Co. is in the midst of a building push in one hotspot for future development statewide: apartments in less-than-traditional spaces. The Newport Beach-based company, which owns 125 complexes with 65,000 apartments across California, has 3,000 units under construction at three sites in Orange County. There are another9,000 units in various stages of planning in Orange, San Diego and Santa Clara counties."
"High financing costs, a wobbly economy, flat rents and overbuilding in certain markets nudged many other developers to cancel or delay rental projects. In California, apartment construction - as measured by multifamily permits - is down 25% over the past two years to a pace not seen since 2013-14. But Irvine Co. owner Donald Bren, the nation's wealthiest real estate investor, frequently uses unconventional thinking."
"The 93-year-old's confidence in making against-the-grain bets stems from a long-term focus as both a developer and owner. Irvine Co. has created a diverse California-centric portfolioof residential, retail, entertainment, recreation and business properties. Bren is a pioneer in what the industry calls master planned communities, where entire neighborhoods have long-range blueprints for development."
Irvine Co. is undertaking a major apartment construction effort across California, with 3,000 units under construction in Orange County and another9,000 units in planning across Orange, San Diego and Santa Clara counties. The company owns 125 complexes totaling 65,000 apartments and would rank 12th among U.S. apartment owners by NMHC standards. This activity contrasts with a national and state slowdown in multifamily development driven by high financing costs, a soft economy, flat rents and localized overbuilding that has cut California multifamily permits about 25% over two years. Owner Donald Bren relies on long-term master planning and countercyclical investment strategies.
#california-real-estate #apartment-development #master-planned-communities #countercyclical-investment
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