Looking around, I truly feel that the values of Los Angeles apartment buildings are on the rise, defying many predictions of a collapse that naysayers were saying was going to push us back into a recession.

There are near record-low interest rates and higher cap rates, which are luring in buyers with the promise of cheaper financing and higher returns. Much more so than many other investments currently available. However, there is a very limited number of quality properties available for sale.

On another note, a local builder is highly active in the apartment market as well. According to a press release from the J.H. Snyder Company on January 28 of this year, builder Jerry Snyder is moving forward in building a transit oriented two-tower property.

• The project will consist of 464 units in the apartment building as well as retail space.
• The building will be situated on the active corner of Vermont and Wilshire on a two-acre parcel which was previously entitled for the project.
• J.H. Snyder Company anticipates the property will achieve LEED certification upon completion.

New multifamily construction projects of this size are rare in Los Angeles and this is expected to be one of the major new developments in the area. According to Los Angeles City Councilmember Herb Wesson, “The Vermont project is expected to deliver up to 2,000 union construction jobs.”

Overall, I think this is great news for our local economy and for the apartment market. Who says the commercial real estate market is in the gutter?

What have been your observations of the apartment market in Los Angeles? Are you looking to buy or sell an apartment and curious about the market in your specific area? Please leave your comments or feel free to contact me directly.

Photo courtesy of Toolshed4′s Flickr