Apartment Revival

After a long slump, apartment values in Los Angeles County are on the rise, according to a report by Marcus & Millichap Real Estate Investment Brokerage Co. Investors will pay an estimated $37,500 per unit for properties with five apartments or more. Last year, the average unit price was $32,000.

The reason for the rise: Investors perceive the market as having bottomed out and now going through a slow recovery, said Hessam Nadji, national director of Marcus & Millichap’s research services. Landlords will be helped out by the scarcity of apartment construction.

Although the worst might be over, the market still has a long way to go for recovery, judging by rental and occupancy figures. In large Los Angeles apartment complexes, the average rent of $910 for one- and two-bedroom units has remained relatively flat over the last several years and the vacancy rate has hovered above 6%--high by national standards, according to Marcus & Millichap. In Orange County, the average rent--$859--is lower than in Los Angeles but the rate has been rising more quickly, climbing 4.2% since last year.

Jesus Sanchez can be reached at Jesus.S[email protected]