Multifamily Home SOLD - The future of Real Estate
Another Sale for our Multi-Family Team
2033 Garnet Ave, San Diego, CA 92109 | 4 Units
RARE OPPORTUNITY within BLOCKS FROM THE BEACH
EXCELLENT UNIT MIX • LARGE FRONT DECKS
Well maintained with good upside in rents
The property in Pacific Beach was sold by The Linde & Schweizer Trusts for $1,200,000 to The Natalie Maffei Family Trust. Pacific Coast Commercial Agents Diane Campochiaro, Investment Sales Associate and Mack Langston, Director, Multifamily & Investment Sales represented the seller.
Our multifamily team has had a handful of successful investment sales in the last few months. In recent years a new generation is just as optimistic about trends that indicate that the technological innovations that have transformed the way Americans communicate, work, and travel will also change the places they call home. Which is why we believe, and with evidence to back it up, that multifamily housing is the future of real estate.
Why?
Growth and Migration Patterns
A period of technological innovation in the real estate market will be the direct result of the demand created by a steadily growing American population. And immigration will be the catalyst that sustains this population boom: U.S. Census projections indicate that although 157 million babies will be born to native-born mothers through 2040, that number won’t offset the 162 million Americans who will die during the same period. Thanks to a projected 64 million immigrants and 40 million babies born to them through 2040, America will have a net population boom.
Real estate planners and home builders are anticipating these demographics with plans for new multifamily dwellings in once-vibrant cities that suffered when large portions of their populations moved to suburbs and exurbs. Expect the downtown neighborhoods of cities such as Cleveland, Pittsburgh, and Oklahoma City to make dramatic comebacks. And investors are particularly optimistic: they expect that the percentage in population growth that immigrants add to a city will be matched by an equal percentage in the growth of rental rates.
Innovative Ways of Living
It’s not just urban cores that will experience revivals. Suburban areas, some of which have experienced the sprawl of strip malls and debilitating traffic jams, will become more marketable because of Internet-connected transportation technologies such as self-driving cars and environmentally friendly mass transit systems. Urban planners have shown that suburbs will grow outward from urban cores when residents can more easily access downtown offices and know the length of their commute and the most efficient route to take. But their growth will be predicated on smart connections to transit – doing away with the beltway sprawl that characterized their growth in the 1950s and ‘60s.
Affordable Housing Shortage?
Urban planners and builders in Scandinavia have long been proponents of prefabricated housing. Today, sustainable, weatherproof materials and even three-dimensional printing are helping architects design apartment “pods” that can be efficiently assembled into buildings that utilize the footprints of old parking lots and manufacturing parks. And it’s not just Scandinavians who are using the techniques. For example, some high-profile mixed-use developments in downtown Brooklyn incorporate “pod” design. The result is housing that is high quality yet affordable.
Those who rediscover the advantages of city living (no long commutes and proximity to an array of shopping, hospitals and healthcare, and entertainment) will find apartments that have been retrofitted into buildings formerly used as parking garages and factories. Although the units will likely be smaller, so will the average American family, according to the report. New multifamily buildings will also be designed with space-saving innovations like stow-away beds and furniture, as well as maximizing city views.
The term “high quality” isn’t just for building materials. The MIT report shows how municipalities can provide free Wi-Fi to all their residents and instantly create a dynamic sharing economy, with residents communicating with each other and with city agencies. The reams of Big Data produced by all those online interactions can provide an ideal environment in which civic concerns are analyzed using predictive analytics. City officials will be able to anticipate the needs of residents well in advance of everything from storms to public festivals.
The report also details the rise of “biophilic” architecture – a trend in real estate that incorporates (or mimics) nature in a housing unit or office space (natural building materials, ample light and fresh air) that creates a sense of well-being and happiness. Combined with external features like more inclusive and flexible zoning regulations, entire city neighborhoods will become home to multifamily dwellings of all levels of socioeconomic backgrounds.
That same trend is behind the multi-purpose, open-floor office designs that many companies are adopting to allow their employees to collaborate and innovate more easily. Open floor plans also minimize unused spaces like large boardrooms because all employees can sign up to use such spaces on a first-come, first-serve basis.
Article by Commercial Observer
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