The Hollywood Hills have long been a beacon for the ambitious, and those in search of a better life. Besides being the birthplace of many an American Dream, the Los Angeles neighborhood is situated in the “Movie Capital of the World”, with 52% of residents renting their homes in the area.1
The central locale is one of California’s most in-demand submarkets, offering residents an urban suburban mix feel, along with entertainment options, such as restaurants, shops and parks. It has the big city energy and residents enjoy the community lifestyle.
Many investors like this market for its growth prospects and are compelled to the Multifamily market for several reasons.
1. Rent in LA remains higher than the national Average
Since 2018, the average rent in LA has consistently outperformed the National average by approx $1,000, a trend that has continued into 2021, even at the height of the Covid-19 pandemic.2
2. LA continues to grow as an entertainment and tech hub
Despite a shift by some individual workers from the traditional coastal employment hubs, the big-hitters in entertainment and tech remain in LA, and many of these companies are thriving in the digital age. Google is working on developing a 585,000 square feet location for new offices,3 Netflix has been expanding its footprint since 2019,4 streaming giants Apple and Spotify both have LA offices, and L.A.- based companies like LiveXLLive Corp and Quit Mumbling Inc. are also benefiting from the growing streaming market.5
3. The School System is Strong and Sought After
The family market and school systems are inseparable, and Hollywood Hills is an appealing prospect for those who do not want their children to get locked into the private school system.6 Not only are there lots of options for families living in the Hollywood Hills, the standard of these schools is high.1
Our latest multifamily deal in the Hollywood Hills is capitalizing on the increased growth in the rental market, the continued investment in LA by some of the world’s biggest, and fastest growing, employers, and the strong school system. The experienced LA-based sponsor sees a significant Value-Add opportunity, which will allow the asset to compete with the higher rental market in this in-demand area of California. If you are interested in exploring this offering, log in to our platform to find detailed information.
Sources
(1) (7) Niche, Hollywood Hills
(2) Rent Cafe, LA Rental Market
(3) Urbanize, Westside Pavilion Google Office Campus
(4) Dot LA, Netflix and Google to Dominate LA
(5) LA Business Journal, Tech Companies Keep LA’s Music Industry Humming
(6) LA Times, Hollywood Hills Spotlight
