How the Urban Renaissance in Gateway Cities Creates Opportunities for Savvy Investors
September 2016. Written by Jan Brzeski
The best jobs are increasingly located in the largest city centers rather than in the suburbs. Young professionals are increasingly choosing to live in centrally located urban neighborhoods for a number of reasons: improved safety, access to parks and cultural institutions, and decreased reliance on cars and long freeway commutes in favor of public transit and walkability. As a result, the dense urban centers of California’s “gateway” cities — Los Angeles and San Francisco — are seeing a surge in property investment and redevelopment: not only large-scale developments, but also many smaller-scale projects. The developers of these smaller projects have limited access to bank financing, presenting an opportunity for nimble investors and fund managers who understand this business, and can provide the capital developers need, when they need it.