Are There Any More DTLA Real Estate Deals Left?

Yes, there are, but the deals are of a different type. When the DTLA market was just starting to pick up again in late 2012, buyers were able to choose from not only standard sales, but short sales and foreclosures. In 2013, the short sales had been mostly snatched up--many by cash buyers and investors. But not all deals are in the form of short sales and foreclosures. These days, the deals to be had are the pocket listings, stale listings and buildings with litigation.

POCKET LISTINGS, often called "secret listings" and "private listings," are those that are not published on the MLS or advertised. Sellers who don't want the world to know they are selling or want their name to be kept private until a sale records is often the reason for these listings. These properties are sold by agents who have a private list of ready and willing buyers, or who have a network of other agents who have ready and willing buyers. The general public will never even know these listings exist. The great thing about pocket listings is that there's usually one bidder, so the chances of your offer getting accepted (or at least countered) is much greater, and without the price inflation which is often the result of multiple offers. More than half of my buyer clients have bought pocket listings, avoiding the multiple offer mess that causes long agonizing waits and oftentimes drives up prices.

STALE LISTINGS are those that have been sitting on the market for more than 90 days. While most DTLA real estate moves quickly, those that have sat for a while because of bad timing, a buyer backing out, or litigation on the building, can be deals in disguise. One of my clients just bought an amazing loft at well under the market rates because the loft had fallen out of escrow due to a lender that couldn't perform. The loft sat for a few more weeks, making it look even less attractive. Upon hearing that this ginormous loft was back on the market, the buyer swooped in and bid 49k below asking and got an accepted offer because the seller was desperate to get into another escrow.

While LITIGATION isn't ideal, the reality is that a LOT of buildings are involved in some form of litigation, oftentimes with the developer. This means that most lenders can't offer a loan for that building due to risk and this tends to drive prices down in a building. While a lawsuit scares most people and lenders away, buyers who can find a lender are getting accepted offers at below market prices. The catch is that you often have to put a higher downpayment in order to get viable financing on the property. The thing is, lawsuits eventually go away, but a good investment can be forever.

Send an email to info@sartparker.com if you'd like to be on the list to receive pocket listings as we get them. 

SOLD - Spacious Industrial Loft for Sale - Barker Block #108

True live/work loft for lease in the Barker Block building. Designed by The KOR Group, 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 stunning oversized loft features more than 2100sf of space on two levels, immaculate polished concrete floors, and 2 covered  and assigned side-by-side parking spaces. Listed at $1,050,000.

SOLD - Corner Loft with Stunning Views - Rowan #1002

Corner lofts generally command higher prices and faster rents. New corner loft at the lovely Rowan Building on bustling Spring Street. Beautiful, spacious restored loft in the heart of the historic core boasts lovely city views through its original oversized windows, dark wood floors and an entertainer's kitchen. Features an open plan and great L-shaped layout. The loft is 729sf and the asking price is $499k. Parking available in the adjacent building for a fee. The Rowan is a Mills Act designated building.

SOLD - Rare Chance to Own at 940 E. 2nd - Unit #28

Lofts at 940 E. 2nd are very hard to come by because they rarely go on sale. Now there's a stunning, spacious, 3 bedroom, 2 bath unit available in this coveted building. Converted from a sugar barn, the units in this building have retained some of their history with exposed brick walls and reclaimed details. On the market for the first time, this loft has it all. 2 bedrooms, 2.5 baths, and a tri-level layout with vaulted ceilings and plenty of sky lights for a bright and airy interior. There is even a patio on the first floor and a balcony off the master bedroom.  The kitchen features stainless appliances and the flooring varies from concrete to oak wood. Comes with 2 assigned parking spaces. Conveniently located in the Arts District on the border of Little Tokyo, and just steps to Urth Cafe, Wurstkuche, Piehole, Umami, Villians, Church & State and more. 1280 sf, asking $834,900.