SOLD - Great Investment on Broadway - Pan American Lofts #410

Exactly one year ago, things were very different on Broadway. These days, good luck if you're looking for condo on Broadway for under 600k. And even better luck to developers if you're in the market for a complete do-over commercial building for under 5MM. However, every now and then good things do come up on one of the most coveted streets in DTLA, like this loft at the Pan American Lofts. The building is located on Broadway just steps from Grand Central Market, Maccheroni Republic, The Edison, Badmaash, Groundwork Coffee, Pitfire Pizza, the LAPD dog run, Grand Central Park, and just blocks from The Ace Hotel and soon-to-be Kinfolk Studios, and Little Tokyo. This unit is a 1 bed, 1 bath with original brick walls and faces west for lots of sunlight during the afternoons. Beatiful Pan American building that was originally built in 1895 and has film pedigree. Parking is not included, but covered parking is available nearby for $100-$150/mo. The price is hard to beat at $399k. 

SOLD - Spacious + Patio Arts District Loft For Sale - Barker Block #255

True live/work loft for sale in the Barker Block building. Developed by the KOR Group (Viceroy Hotel, Eastern Columbia), the building boasts a lovely rooftop pool and gym--both with views for miles, courtyard areas and an art exhibition tunnel. Plus it's directly across the street from Urth Cafe, perfect for that morning coffee run. The airy loft features original wood beams and ceilings, luxe finishes and hardware throughout. There's a mix of concrete and dark hardwood floors, open space kitchen and living area. Best of all, it has its own private patio. Listed at $649k for 1150 sf of livable, workable space. Includes 1 assigned parking spaces.

DTLA Real Estate Climate as of June 2014

Lots of buyers who've decided they want to buy in DTLA are asking me key questions before they take the leap. As a homeowner and investor in downtown myself, here are my answers to these questions:

"Am I buying at the height?" 
Understandable question since prices have been steadily climbing to near-2007-peak prices--and in some super-desirable buildings (think Eastern Columbia, Biscuit Company Lofts, Barker Block)--beyond peak prices. I always tell my clients the same thing: "This isn't the height." What's so sublimely different now than what happened back in the crash of 2009 is the inventory is super low in DTLA. Supply and demand always affect prices, and there is a great demand for condo and loft housing right now yet the pickings are slim. Buildings that were once slated to be condos (e.g. The Chapman, The Roosevelt, Apex, etc.) became rental-only buildings because of the crash--and the owners of these buildings are happy to just rake in the continuously increasing rents. Most of the new developments such as One Santa Fe in the Arts District, 8th & Hope near South Park, and Ava in Little Tokyo for example, are all rentals. It's no wonder the newest phase of Barker Block is nearly sold out with only 7 units left as of today.

"Is there a bubble that will burst?"
Two reasons the climate is different from that of the 2007-2009. First, the loose lending practices that dominated the height of the market are now gone. It's been a lot more difficult for buyers to get qualified for a loan and many lenders are requiring a larger down, the upside being that this has helped buyers have instant equity as soon as they've purchased. While this means some buyers who have little savings for a downpayment or bad credit might experience hurdle and blocks, those who can qualify for a loan will be buying  what they can actually afford, and this should help prevent short sales and foreclosures. Secondly, the the investment happening in DTLA right now is from businesses, NOT just homebuyers and residential developers. Back in the bubble days, a bunch of buyers/investors scrambled to buy a condo due to speculation, but business investment was pretty much non-existent (Except for good old Ralphs and Cedd Moses' bars such as Seven Grand and The Golden Gopher). Now, there are more developments and new businesses that have and will create jobs, such as The Bloc, Clean Technology Incubator, Gensler Architects, One Santa Fe, The Ace Hotel, The JW Marriott, The Residence Inn, the upcoming Case Hotel, Arts District "Mall", Urban Radish, 7th & Fig. And this is just the tip of the iceberg.

"Is all this building around DTLA going to affect my purchase?"
Depends on what you're buying to do. If you're planning on living in your home, then you've got it made. Enjoy the rise in values as DTLA continues to revitalize. If you're buying to invest and rent out, this gets more tricky because in the near future, beginning this Fall, there will be an influx of new rental-only buildings. (Think Ava Little Tokyo, Olive & 9th, 8the & Hope, Avant, One Santa Fe). You'll have competition with these new developments that will attract tenants who want the newest place to live. That said, some condo buildings will always be in demand by renters because of their uniqueness and location, such as The Residences at The Ritz Carlton, Barker Block, Molino Lofts, Biscuit Lofts, Eastern Columbia, The Rowan, to name a few.

SOLD AT ASKING - Corner Unit on Broadway - Pan American Lofts #304

Sweet corner unit with original details intact in the old Pan American building, originally the Irvine Byrne building that was built in 1895. Beautiful exposed brick, 12' tall ceilings and views of Broadway and 3rd Street. Even has a balcony! Located blocks to The Edison, Groundwork Coffee, Little Tokyo, 2nd St. dog park, Grand Park, Grand Central Market, and steps to Gallery Row. This open plan loft features 970sf of space and includes 1 parking space. Asking $550k.

SOLD - Mills Act Pied a Terre - Douglas Lofts 4B

Sweet pied a terre in a historic building with Mills Act designation.  Converted from an 1898 office building, the 50-unit Douglas building is known for its original character details such as exposed brick, original wood floors and tile throughout. Located blocks to The Edison, Groundwork Coffee, Little Tokyo, 2nd St. dog park, Grand Park, and steps to Gallery Row, this pristine loft features 700sf of space. Asking $475k. Email me to schedule a viewing.

Quick and Dirty Rundown of Downtown Retail & Restaurants

Lots of stuff going on in DTLA--but that's pretty much the same story since, what, 2006? Before the crash, there was activity. After the crash, the activity slowed down, but it never stopped. DTLA believers like Adam Fleischman (Umami and Choco Chicken), Cedd Moses (Coles, Golden Gopher, Clifton's), the late Alex Calderwood (Rudy's Barbershop, Ace Hotel), and Tyler Wells (soon to be "merged" Handsome Coffee) forged on. The big difference between the pre-crash era and now? In addition to places to live, more businesses have been opening in the area than ever before, and businesses are the key to attracting jobs, visitors, and residents. DTLA is finally in a healthy place. Just in the past few months we've welcomed Eighty Two Barcade, Oak, Aesop, Stumptown Coffee, Tanner Goods, H&M, Zara, Sea Salt, Warby Parker, Alma, and Blacktop Coffee. Watch out for: Whole Foods.