Tishman Speyer has secured the land for its first Los Angeles-area residential project. The developer acquired the portfolio of eight sites in downtown Santa Monica from WS Communities. The seller was represented by Walker & Dunlop, who also arranged financing from Blackstone for the acquisition.
The eight sites span 3.1 acres and will be built as the Santa Monica Collection, a Class A-apartment community totaling 620 units, 116 of which will be designated as affordable, and approximately 31,000 square feet of retail. A Tishman Speyer spokesperson told Multi-Housing News that the development will include studios, one-, two- and three-bedroom units.
The community will be built a couple of blocks away from the Downtown Santa Monica light rail stop, and the Santa Monica Pier and Beach just a few blocks further. Residents will also have immediate access to the city’s many restaurants, retail and nightlight options.
According to Tishman Speyer, the project’s entitlements are already in place, allowing the start of construction that’s expected by late 2022. The first phase is expected to deliver the first buildings by the end of 2024 and the second phase is expected to deliver by the end of 2026, the Tishman Speyer spokesperson told MHN.
A GROWING NEED FOR NEW HOUSING
According to Tishman Speyer, the Santa Monica market has a growing need for modern rental housing that’s caused partly by a heavy demand from individuals and families. On the other side, the supply-constrained market is seeing expensive prices for home-buyers, high barriers to entry for new multifamily developments and outdated existing inventory, according to Tishman Speyer.
Rob Speyer, president & CEO of Tishman Speyer, said in prepared remarks that the company’s Santa Monica project would bring a critical mass of new housing to a market that needed it. A Marcus & Millichap third quarter report on the Los Angeles metro area’s multifamily market showed that nearly 9,700 units were absorbed, likely caused by the addition of 89,000 jobs in the second quarter of 2021. The metro also saw its overall vacancy lower to 4 percent, while its average rent grew by roughly 3 percent. Outside California, Tishman Speyer also recently launched its affordable housing division that will focus on New York City.