What’s Slowing Development in Southern California?

Sep 14, 2016

By Carrie Rossenfeld

SAN DIEGO– Government and entitlement roadblocks continue to impede the amount of housing the industry is able to deliver to meet demand, Zephyr’s co-CEO Brad Termini tells Termini founded Zephyr in 2008- at the height of the residential slump- and has successfully completed more than $750 million in residential developments throughout San Diego that include high-end, mid-rise condos; ocean-view condos; artisan-crafted custom homes; and high-end townhomes. We spoke exclusively with Termini about his firm’s strategy and his predictions for the residential market in 2017. Zephyr’s developments are varied and diverse, which isn’t common in the residential real estate industry. What’s the thought process behind this strategy?

Termini: The strategy is simple. We strive to develop significant projects, in partnership with great people that have lasting benefits to the communities we work in. If we can achieve those three goals, the product type doesn’t matter as much. How would you describe Zephyr’s culture, and how do you nurture/foster it?

Termini: Zephyr’s culture is entrepreneurial, fast-moving and forward thinking. Everyone in our company acts like an owner; without that level of accountability and passion, we wouldn’t be able to achieve our highest potential on a personal, project or company level.  You might think that sounds like “too many cooks in the kitchen,” but instead, we approach each team member as a specialist in their field who can lend their expertise to a project. We have a network of “consultants” and experts within our own company. It gets loud in our open-plan office sometimes, but it’s important for everyone to be able to voice their ideas and work collaboratively. What are your predictions for the residential market in 2017?

Termini: Unfortunately, we can’t predict the future, but we continue to see a supply imbalance in California housing, particularly in the workforce-housing segment. We are bullish that the housing market will continue to remain strong as the industry continues to try and meet the overwhelming demand. What are some of the trends you’re seeing in the industry in regards to buyer requests/wants?

Termini: In the San Diego coastal market, we’re seeing many people move away from the large estate homes and more towards homes that are easier to maintain. That might mean less square footage or more drought-tolerant and native landscaping. Our buyers are also requesting true turn-key living. Select Signature Series Homes are offered fully furnished, with furniture, fit and finish all designer selected. Our luxury condominium projects- SummerHouse in Carlsbad and The Park in Bankers Hill-feature concierge service, direct-access elevators, privacy and exclusivity-everything a jetsetter who needs a lock-and-leave lifestyle could want. What factors are propelling or impeding development in Southern California?

Termini: Government and entitlement roadblocks continue to impede the amount of housing the industry is able to deliver to meet demand.  For the first time, Governor Brown has proposed meaningful legislation that would fast track projects that promote workforce housing and take excessive powers away from local NIMBY groups.


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