Law360 interviewed Manatt's Michael Polentz, co-chair of the firm's Real Estate and Land Use practice, for an article on the rise of condo projects in California.
Law360 reports that developers had been hesitant to build or convert to for-sale units partly because of their added risk, but that's changing as continued demand has developers seeking higher returns. Despite the various liabilities in condo projects, developers in the Bay Area and Los Angeles are now seeing enough of an upside to outweigh the risks.
Condo construction and conversion is "coming back with a vengeance," said Polentz. "We're definitely seeing ... a much greater demand than supply still, notwithstanding the number of multifamily properties in the pipeline. Developers are seeing the opportunity of for-sale product to come back."
Read the article here.