Walking in LA: DTLA is the Most Walkable Neighborhood

In so many ways, DTLA is changing the way we view Los Angeles. Sprawl isn't the only way of life. Nor is it all about getting in the car to grab a cup of coffee or to pick up groceries. And it doesn't have to be about commuting 25 miles each way to get to work. According to Walkscore.com, DTLA has a 93% walkscore, 99% transit score, and 69% bike score (and getting better all the time). This is pretty unusual for Los Angeles, but it shows that you CAN walk in L.A.

10-Minute walk to/from:

SOUTH PARK to: Expo Line, Red Line, Ralphs, The Bloc, Staples Center, LA Live, Figueroa Hotel, Restaurant Row

HISTORIC CORE to: Red Line, Pershing Square, Restaurant Row, Jewelry District, Ace Hotel, Grand Central Market

CITY HALL to: Grand Central Market, Little Tokyo, Gold Line, Bunker Hill, Grand Park

ARTS DISTRICT: Little Tokyo, Gold Line, Woori Market, Urth Cafe, Wurstkuche, Pie Hole, Umami, Grand Park

The Rush to Buy - 2 Reasons in DTLA

Pickings are slim in DTLA these days. The inventory hovers around 90 condos available for sale at any given time. And a small portion of that is senior citizen housing, so the number is actually less than 90. With such low supply, it's no wonder prices are as high as ever. This low inventory (fueled by tons of investors from NYC, SF, overseas) is one of the reasons buyers are snapping up the prime units (higher floor, corner unit, views, doorman, pool, patio, etc.). The second reason is rent control. Most buildings in DTLA (in fact nearly all) are not subject to rent control laws, meaning landlords can increase rents upon every lease renewal. Why do you think so many people have investments here?

SOLD OVER ASKING - Spacious Split Level Loft with Private Patio - Barker Block #126

True live/work corner loft in the Barker Block building with 2350sf of living space, making it one of the most spacious lofts in the 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 a unique split level floorplan and a private patio. Has original wood beams, beautiful hardwood floors, 2 bathrooms and 2 assigned parking spaces. Listed at $1.179MM. 

Buyer Confidence is Back

Despite it being a typically slow time of year, condo purchases haven't stopped. In fact, a significant percentage of lofts are now selling for asking price or higher. Of course there are properties that sell for below asking, but these tend to be properties that have funky layouts, dated kitchens and bathrooms, existing tenants, a terrible view, etc. Even then, they rarely go for too far below asking. Overall, home seekers and investors are feeling more confident about purchasing, and in downtown in particular. With interest rates still at historic lows and ever increasing rent prices, it's essentially more practical to buy, especially since your downpayment serves as instant equity. Something to think about.

Average Price Per SF of Condos/Coops in Major Areas

Average price/sf in Manhattan: $1363

Average price/sf in SF (City): $1262

Average price/sf in Santa Monica: $840

Average price/sf in Beverly Hills: $690

Average price/sf in DTLA: $546

Net Worth of Homeowners vs. Renters

According to a study by the Federal Reserve Survey of Consumer Finances, all other things being equal, "median homeowners had nearly $200,000 in net worth as compared to $5000 for renters."

Sidebar: Yes, we know that many homeowners were under water on their mortgage when the bubble burst in 2009. However, many of these same homeowners that held on for 4 years (yes, until 2013) saw their homes go right back to where they bought at the "height."

A successful landlord once said to me: "Paying a mortgage is like paying rent, except that you own the property and you can sell it for a profit once it appreciates, which it always does over time." 

The point is, whether you buy at the height or the bottom, if you hold on to property long enough, chances are, your home will have equity because over time, property values always go up. It's really that simple. I don't know anyone who hasn't thought to themselves, "I wish I had bought back then."

Sidebar: While buying property is one of the oldest, tried and true ways to wealth, you should do it smartly. This means putting 10-20% or more down--which I always advise my buyer clients. This helps provide instant equity.

Spacious Top Floor Loft with Vaulted Ceilings - Molino Lofts #306

Spacious, oversized unit at Molino Lofts. Original brick walls, vaulted ceilings over 14" in a true open plan loft layout. True live/work loft on the top floor designed by the KOR Group, the building boasts a lovely rooftop pool with views for miles, lounge deck and parking. Around the corner from Urth Cafe, Blue Bottle, Zinc, Wurstkuche, Urban Radish, Church & State. Loft is a particularly large floorplan with exposed beams, and more. Listed at $975k for 1810 sf of livable, workable space.

SOLD - Corner Warehouse Loft with Balcony - Toy Factory #519

Amazing spacious loft with 14" ceilings and polished concrete floors in the heart of the Arts District. This stylish live/work loft features endless upgrades that include custom-built room dividers , gourmet kitchen, custom-built closet and more. The unit also features a private balcony and 2 parking spaces. The building boasts a rooftop pool and gym--both with views for miles, lower rooftop courtyard and a full gym. Located across the street from Church & State, Daily Dose, Pour Haus, Little Bear, Urban Radish, and just a couple blocks from Bestia and Handsome Coffee. This pristine loft is listed at $819k for 1438sf of space. Has 1 bath.