Over the last 5 years, multifamily housing gave a 9.2% return on investment, according to CBRE. So, it’s no surprise that CGI Strategies was able to sell its recent development, The KODO, in the trendy Koreatown neighborhood for $29 million, yielding a healthy profit.
Multifamily has been a successful sector in the real estate market for quite some time, but seeking out communities that make the investment more profitable is a key factor in CGI’s decision to purchase properties. And Koreatown fits the bill.
Koreatown’s mix of vibrant nightlife, luxury shopping, upscale dining and a vast expanse of entertainment options appeal to young and seasoned professionals across the board, making it a priority on savvy investors’ lists to get in on the opportunity.
Other properties are currently being developed in the area and are expected to perform in accordance with current trends. The properties will continue to be developed with a mix of short-term and furnished luxury rentals that command a higher ADR.