How The Residential And Multifamily Sectors Are Changing

How The Residential And Multifamily Sectors Are Changing

NEWPORT BEACH, CA—The most relevant change in the residential and multifamily sectors is the level of sophistication that is now required, which calls for teams with individuals who contribute specialized knowledge and relationships, Land Advisors Organization’s David Kidder tells Kidder was recently appointed president of LAO’s California Division to oversee all aspects of the business, including strategic leadership of the firm’s operations and continued growth of its affiliated companies.

Before his new appointment, Kidder had served as president of Landmark Capital, an LAO-CA-affiliated company disciplined in finance and private equity for residential and commercial real estate projects. In his new position at LAO-CA, he will retain his role as president of Landmark Capital to further integrate and grow the affiliated companies.

We spoke with Kidder about his goals in his new role and how the business of residential and multifamily real estate continues to change. What are your goals in your new role as president of Land Advisors?

Kidder: Our immediate and ongoing objective is to further integrate the knowledge-base of our affiliated Land Advisors and Landmark Capital platforms. The respective verticals provide: 1) a long track record of advising on complicated residential development projects; 2) a unique blend of residential and commercial asset expertise; and 3) capital-markets sophistication. This positions us to capture a compelling opportunity in the marketplace. As opportunities arise to develop older infill product into higher-density residential and mixed-use communities, our objective is to be the go-to advisor for the development and redevelopment of transitional and underutilized real estate assets. How do you believe the business you are in is changing?

Kidder: The most important thing we see is the level of sophistication that is now required. The added complexity calls for teams with individuals who contribute specialized knowledge and relationships. We pride ourselves on the importance of approaching projects from an investor’s perspective. Our goal is to earn the respect of our clients by thoroughly assessing and understanding the risks of any given project, candidly conveying the challenges to be cognizant of, and identifying solutions to mitigate those risks. The combined platforms provide a knowledge base that extends from entitlement issues to an understanding of municipality-specific issues and fees to infrastructure development challenges, to institutional-caliber financial analysis. Together this allows us to provide a comprehensive level of advisory services to our clients. Some industry experts are reporting a slowing of deal volume in some markets and property sectors. What are you noticing in regard to this?

Kidder: The market is challenging. In addition to higher asset values, there is a host of headwinds including increasing development-impact fees, rising commodity prices, continued labor shortages and significant political opposition to new development. Despite the challenging development environment, we are optimistic about the long-term prospects for both infill and suburban markets. There continues to be a pervasive and significant under-supply of housing stock in California, and our platform is well positioned to capitalize on this market opportunity. What else should our readers know about changes at your company?

Kidder: Land Advisors and Landmark Capital represent the foundation of a growing advisory platform. There is a demand for increasingly sophisticated advisory services across the real estate spectrum. We will continue to expand our focus to meet the needs of not only traditional real estate operators and developers, but also institutional and private-family-office investors.