Another fact that most apartment developers have overlooked is that
studios rent quicker and turnover at the same rate or less
frequently than one and two bedroom units.
American first discovered this
while conducting an Orange County Survey of existing apartment
projects. This was again confirmed while performing a national
market survey for studios in urban amenity rich locations (see the
Market Survey Section of this Offering).
American’s concept for Young
Urban Communities is further rooted in the realization that a large
portion of this market does not want to waste time commuting from
suburban communities and wants to live in areas with concentrations
of other young adults where they could easily connect. These
concentrations occur in areas with a high number of shops,
restaurants, and entertainment opportunities, areas where these
young adults and others in their generation currently play.
Meeting the demand for young
urban professional housing in these high priced areas with a product
that meets the expectations and budgets of this group requires small
units in high density, in architecturally distinguished projects,
like the Elevé Glendale Project in Downtown Glendale.
Older, rundown, downtown areas have single room
occupancy hotels and rundown apartment projects with rents the
target market can afford. However, these projects are unattractive
to young urban professionals because of their tenant profiles, the
immediate surroundings of most of these projects, their condition,
and their general lack of ambiance. Particularly, the top 30% wage
earners in this market segment have upper middle income parents and
their expectations of ambiance, levels of finish, and location can
not be met with these under-maintained projects.