Why Prices Are Keeping Steady in Downtown

For those of you who've been keeping up with the happenings in downtown, you'll know that the market has been hot. While some units are selling about 1-3% below asking, many are selling for at or over asking. This is because the development in downtown has been nonstop since the crash in 2008. Savvy investors are transforming the neighborhood and residents and visitors are coming by the droves. This is just a glimpse of what's to come to DTLA in the next couple of years, and this isn't including all of the wonderful new eateries, cafes and boutiques that are opening literally every week:

1. Whole Foods

2. Complete transformation of The Bloc shopping center

3. Empire Hotel

4. Case Hotel

5. Trader Joes

6. Broad Museum

7. One Santa Fe Arts Theater and Shopping Complex

8. 1st & Broadway Park

9. Wilshire Grand

10. Metropolis

11. Alamo Draft House Theater

12. Freehand Hotel

Median Price from Sep 2013 vs Sept 2014

Stats are out: The median home price in California was $428,290 back in September 2013. The median home price in September 2014 was $460,940. That's a 7.6 percent increase. And need I say again that interest rates are at an unprecedented low?

Mortgage Rates Dropped to Below 4%

For the first time since June 2013, 30-year mortgage rates are at the lowest. 3.92%. Now is the time to borrow.

SOLD - Beautiful Artist Loft in Esteemed Mills Act Building - Biscuit Lofts #305

The jewel of the Arts District is Biscuit Company Lofts. This unique loft features 1112 square feet of open plan space. Stainless, modern kitchen, 16 foot ceilings, original windows and brick details are just some of the features in this historic loft. Once the famed Nabisco building, it also has the coveted Mills Act distinction and amenities include a fitness center, lap pool with outdoor deck area, 24-hour concierge and security. Walkable to Urban Radish local grocer, Church and State bistro, Pour Haus wine bar, Daily Dose coffee, Stumptown Coffee, Blue Bottle Coffee, Bestia, Little Bear, Urth Cafe, Bread Lounge and more. 1 bed, 1 bath, 1112sf. No parking included. Offered at $679k.

SOLD - Spacious Arts District Top Floor Loft - Molino Lofts #306

True live/work loft for sale in the Molino Lofts building. Designed by The KOR Group, the building boasts a lovely rooftop pool and gym, a sun deck, gym and gated parking. The stunning top floor loft features more than 1800sf of space and vaulted ceilings where the highest point is about 22' tall. Amazing space with wood beams, hard wood floors, fire escape balcony, and an open, airy layout. Comes with 1 assigned parking space. Asking $935,000.

SOLD - Industrial Warehouse Loft with Views - Toy Factory #620

Amazing spacious loft with high 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, lighting, custom-built closet and more. Expansive southerly views from the oversized windows. The unit also features 1 in-building parking space. The building boasts a rooftop pool and spa--both with views for miles, lower rooftop courtyard and a full gym, as well as front desk security. 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, Urth Cafe. This pristine loft is listed at $598k for 1039sf of space. Has 1 bath.

For DTLA Homeowners Considering Selling: What Are Buyers Looking For?

Despite low inventory, buyers expect a lot for their money. If you're considering selling your place, the asking price should take these buyer requests into consideration. In my experience working in downtown, these are the things buyers are looking for, in order of importance. If you're planning on buying a condo, then these things should also be taken into consideration as they may impact the price when you re-sell the place.

1. Lots of natural light
2. Higher floor in the building
3. Views of the skyline, city lights, and/or mountains
4. Parking included (whether assigned or deeded)
5. Walkable and safe
6. Low HOA dues
7. Outdoor amenities such as a pool, deck or garden, or gym
8. Private outdoor space such as a patio or balcony
9. Front desk security/doorman/package service
10. In-unit washer & dryer

Call or email me for a free opinion of value. yuri@sartparker.com or 310-869-2655.

SOLD - Light-Filled Corner Loft - Rowan #518

Beautiful, airy 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, wood floors and an entertainer's kitchen. Features an open plan with a partially walled off bedroom. The loft is 720sf and the asking price is $470k. Parking available in the adjacent building for a fee. The Rowan is a Mills Act designated building.

SOLD - North Facing Industrial Loft with Pool, Gym & Doorman - Toy Factory #413

Gorgeous loft with 11" ceilings, walls and floors of concrete in the heart of the Arts District. This live/work loft has original warehouse bones and huge windows that face north and towards the downtown skyline. The loft is spacious at over 1200sf. The building boasts a rooftop deck and pool, open air lounge deck, gym, doorman, and in-building parking. Located across the street from Church & State, Daily Dose, Pour Haus, Little Bear, Urban Radish, and just a couple blocks from Bestia and Blue Bottle Coffee, Urth Cafe, Zinc, Stumptown, Bread Lounge and more. Asking $625k for 1239sf of space. Has 1 bath and 1 covered, in-building parking space.

New Yorkers Investing in DTLA

$4.4 billion. That's the number of dollars New York investors spent on buying up real estate in our humble downtown since 2012. While DTLA has seen tons of change in recent years, it still has so much potential for growth that savvy investors are snatching up properties while they're still affordable. Investment since 2012 is up 23%.

According to Greg Vilkin of Related Cos., "Firms from New York show up and say, wow, I see the potential I saw in Hell's Kitchen a decade ago. I watched TriBeCa, and the High Line, and I see what's going to happen." Either get in while it's still early or pay the price once everything hits peak.

WITHDRAWN - Massive Industrial Live/Work Loft in Arts District - Molino Loft #217

True live/work loft for lease in the Molino building. Designed by The KOR Group, the building boasts a lovely rooftop pool, sundeck, gym, and in-building parking. The stunning oversized loft features nearly 3000sf of space, immaculate wood floors, upgraded appliances, built-in closets, separated rooms, and 1 assigned parking space. 2190sf of space. Asking $1,200,000. Low HOAs at only $574/mo. 

Courtesy of Ted Trentman, Realty Source

Rents in So Cal Going Up and Up

According to USC's Lusk Center, rents in So Cal will steadily climb for the next two years. Expected rises will be around 8%--this is usually means metro areas of LA, the OC and San Diego will go up even higher than 8%. If you're in a rent control area, you can either stay put or buy an investment. If you're planning on renting, get locked in now before things go up. If you're planning on renting out your home, you're in luck!

SOLD - Historic Corner Loft with Brick Details - Rowan #601

The Rowan Building is a classic Beaux-Arts architectural gem. True old-Hollywood styling with original brick and terracotta, and original Italian Carrara marble floors throughout common areas. This loft features a custom built storage and wall unit, Italian Scavolini kitchen, Miele subzero style refrigerator, Miele dishwasher, Toto finished bathroom, and oversized mahogany framed windows offering natural light & cityscape views. Best of all, this is a Mills Act building for significant property tax savings. Amenities include lounge room, garden, BBQ & spa. Walking distance to Gallery Row, Metro Red line, Grand Central Market, Bar Ama, Kazunori, Spring for Coffee, The Must, etc. 720sf of space, parking available in adjacent building. Asking $490k.

CANCELED - Investment at Eastern Columbia - Eastern Columbia #203

The Eastern Columbia building is one of the most adored buildings in downtown. It's located on one of the hottest intersections in DTLA. Within the past year, it has gained neighbors such as The Ace Hotel, Acne, Aesop, Oak, Om Nom, 1810 and more. And this is just the tip of the iceberg, which should translate to even greater upside investment potential. The stunning 1930s art deco masterpiece features the iconic clock tower and bluish patina on the exterior, with a beautifully rehabbed interior by The KOR Group. Being one of the few, Mills Act-approved buildings, you'll also save on property taxes. This 2nd floor unit has 940 sf of space, has a great L-shaped layout and faces east and looks onto Broadway. Includes 1 parking space. Priced to sell quickly at $499,900.

Borrowing While It's Cheap

Record lows for mortgage rates--AGAIN. Just over 4% for a 30-year fixed rate. It's so cheap to borrow money--and with rents soaring in Los Angeles, prices expected to climb even further, it's a wonder why you'd want to rent at all. On top of that, property values have steadily risen since 2009. Remember, real estate over time always makes money in desirable metropolitan areas.