DTLA Properties Under 500k

First-time buyers to DTLA are often wanting to "try out" the area with an investment property first. Here are available condos/lofts under the 500k range. With rental prices averaging about $2.75 and up per square foot, you can have a tenant pay for your property if you've got 25-30% to put down on a 30yr fixed. And this includes prop taxes and HOAs.

Douglas Lofts - 700sf - $465k - (Front desk security, 1 assigned covered parking space)
El Dorado Lofts - 848sf - $478k - (Front desk security)
Mura Condos - 810sf - $499k - (2 assigned parking spaces, storage unit, pool, gym, concierge, BBQ)
1100 Wilshire - 670sf - 499k -  (2 assigned parking spaces, pool, gym, concierge, media room, BBQ)
Market Lofts - 754sf - $469,900 -  (1 assigned parking space, pool, gym, concierge, media room)
Higgins Lofts - 750sf - $430k -  (rooftop deck)
EVO Condos - 750sf - 495k - (1 assigned parking space, pool, gym, lounge, concierge, BBQ)

2015 Housing Forecast

According to Freddie Mac economists, the following projections in housing for 2015

1. Mortgage rates: Interest rates will likely be on the rise next year. By next year, Freddie projects mortgage rates to average 4.6 percent and inch up to 5 percent by the end of the year.
2. Home prices: Continued house-price appreciation and rising mortgage rates will dampen affordability for home buyers. Historically speaking, that's moving from 'very high' levels of affordability to 'high' levels of affordability.
3. Housing starts: Homebuilding is expected to ramp up in the new year, projected to rise by 20 percent from this year. That will likely help total home sales to climb by about 5 percent, reaching the best sales pace in eight years.
4. Single-family originations: Mortgage originations of single-family homes will likely slip by an additional 8 percent, which can be attributed to a steep drop in refinancing volume. Refinancings are expected to make up only 23 percent of originations in 2015; they had been making up more than half in recent years.
5. Multi-family mortgage originations: Mortgage originations for the multi-family sector have surged about 60 percent between 2011 and 2014. Increases are expected to continue in 2015, projected to rise about 14 percent.

Where Are the Grocery Stores in Downtown?

A common question from those who aren't familiar with DTLA. Here are just some of the grocery stores and food purveyors to choose from, nearly all within walking distance of each other.

1. Ralphs
2. Urban Radish (Locally grown veggies)
3. Om Nom Organics
4. Two Bits (Yummy cheeses!)
5. Instacart (They deliver from Whole Foods, Fresh & Easy, Super King, Ralphs!)
6. Belcampo Meats
7. DTLA Cheese at Grand Central Market
8. Woori Market
9. Marukai
10. Old Bank District Market
11. Jason's (Sodas, snacks)
12. Joe's Downtown Market
13. Nijiya Market
14. John & Pat's Promenade Market
15. Smart & Final
16. La Casa Verde at Grand Central Market
17. Sun's Produce at Grand Central Market
18. Torres Produce at Grand Central Market
19. Historic Core Farmers Market (Sundays 9am-2pm)
20. Arts District Farmers Market (Thursdays 5-9pm)
21. Buzz (Nice wine selection)

SOLD - Back on the market for under 300k! Little Tokyo Loft #407

Little Tokyo Lofts are a wonderful warehouse loft community, which also happens to border skid row. This is the main reason for the lower than average price per sf that this building consistently maintains. Regardless, values have steadily gone up in the building since 2009. The area, like many other areas of downtown, are getting cleaned up. The women's shelter nearby just opened a coffee shop/vintage shop/handcrafted goods shop, and this is only the beginning. Loft #407 which went into escrow fairly quickly, is now back on the market. Price has been lowered to $279k. 610sf of space, huge original casement window with views of mountains to the north and the skyline to the west, 1 assigned gated parking space, and amenities include a courtyard lounge, swimming pool, BBQ, dog run and gym. Plus you're a 5-min walk to Grand Central Market, Grand Park, Little Tokyo.

SOLD - Spring St Historic Pied a Terre Loft - El Dorado #707

Beautiful loft in the historic El Dorado building located in the Historic Core. Once the home of Charlie Chaplin, you can now view Spring Street and Spring Street Park from your private balcony. The south facing loft has been meticulously modernized with sleek hardwood flooring, Snaidero cabinetry in the kitchen, and exposed concrete touches. Walk to the Art Walk, Bar Ama, Springtime in New York, Skingraft, Baco Mercat, Grand Central Market, and many more. Parking is available for an additional fee. This is a Mills Act Building which provides significant property tax savings. 1 beds, 1 bath, 740sf. Offered at $505k.

 Courtesy of Agnes Ferreyra, John Aaroe Group

Go Ahead, Raise the Rent

Landlords out there, you know that many of the buildings in DTLA are free of rent control, right? Just wanted to make sure. Buildings that were converted into condominiums are not subject to rent control laws. This is one of the reasons why those who are looking to buy an investment property love downtown. For in-depth information on rent control: http://lahd.lacity.org/lahdinternet/rentstabilization/tabid/247/default.aspx

DTLA Has a Long Way to Go

This sounds unlike what I normally say. But I mean it in the best way. When I started buying properties in DTLA a few years ago, there was only a fraction of the development and places to go...there's more than triple of that now, with lots more in the pipeline. In my opinion, downtown is only about 15% at its potential. Buying now is getting in early. Just ask someone from San Francisco or NYC why they're buying here instead of in Brooklyn or The Mission.

DTLA Wishlist

I conducted an informal poll of downtown residents (i.e. friends and clients), asking them what they'd like to see coming to the neighborhood. Here are the majority of responses:

1. Trader Joes (already happening, FYI)

2. Whole Foods (already happening, FYI)

3. More parks and/or parklets

4. More breakfast options

5. More housing and facilities for Skid Row homeless

6. Independent movie theater (already happening--Alamo Drafthouse)

7. More taxis with taxi ramps

8. Schools

9. Post offices with weekend opening hours

10. More ATMs

SOLD - Huge Banks of Windows in Mills Act Building - Rowan #1105

Beautiful, airy loft at the lovely Rowan Building on bustling Spring Street. The beautiful, spacious restored loft features 2 bedroom and 2 baths, one of the larger floorplans in the building. The west-facing unit features view of the Spring street park and views to the west. Located in the heart of the historic core, the unit is also blessed with original oversized double hung windows, wood floors and an entertainer's kitchen. Features an open plan with a partially walled off bedroom and a second bedroom area that can be used as an office, guest room, etc. The loft is 1260sf and the asking price is now $750k. Parking available in the adjacent building for a fee. The Rowan is a Mills Act designated building which can help save on property taxes.

SOLD - Windows Windows Windows - Barker Block #455

Nearly 40 feet of windows in this lovely, spacious loft facing south in the live/work 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. This loft features 1140 sf of space and upgraded finishes throughout and 2 bathrooms, a rarity for this floorplan. Listed at $695,000. Walkable businesses include Bestia, Stumptown Coffee, Wurstkuche, Urban Radish, Zinc, and many. Includes 1 assigned parking space.

SOLD - Arts District Loft with Skyline Views - Barker Block #413

True live/work loft for sale 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. This warehouse loft is located on the northern end of Barker Block, and features more than 1300 sf of space and upgraded finishes throughout. Beautiful skyline views of downtown from the oversized windows. Listed at $795,000 for 1310 sf of livable, workable space. Walkable businesses include Bestia, Stumptown Coffee, Wurstkuche, Urban Radish, Zinc, and many. Includes 1 assigned parking space.

2015 Median Prices Expected to Rise 5.8%

According to the California Association of Realtors (C.A.R.), the housing median price is anticipated to increase by 5.8% in 2015. From 2013 to 2014, there was an increase of 11.8%, and DTLA was overall higher than the state average.

Spacious Arts District Industrial Loft with Luxe Touches - Barker Block #333

True live/work loft for sale 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 spacious warehouse loft features more than 1700 sf of space and upgraded finishes and hardware throughout. Huge original wood post and beams, white oak wood floors, 2 bedroom or office areas, open space kitchen and living area. Listed at $1,050,000 for 1720 sf of livable, workable space. Walkable businesses include Bestia, Stumptown Coffee, Wurstkuche, Urban Radish, Zinc, and many. Includes 2 assigned parking spaces.

What's Up With All the Units at Bartlett? - #308, #309, #312, #509, #610, #803, #811

I've been flooded with questions about the Bartlett Lofts located at 215 W. 7th Street. Great building, historic pedigree, amazing central location between the historic core and the Financial & Jewelry Districts, anticipated to become a Mills Act building one day, etc. Basically, lots going for the building, but why so many units on the market?

A few reasons. Sales have picked up at the Bartlett this year, and sold prices have increased, which means that owners are happy to sell for a profit, which is why there are suddenly several units--7 to be exact--on the market right now.

The building has front desk security, beautiful rooftop with amazing 360 views, and a lot of the original historic charm intact. Think high ceilings and large windows. The only drawback is that the building does not have parking. This is a turnoff for some buyers.

Lastly, this is a slow time (Fall/Winter) to sell condos and lofts, meaning things tend to sit on the market for 30-45 days on average.

But as I've mentioned before, deals can be scooped up when the market has slowed down. There's always an upside to real estate, as Warren Buffet used to say.

Metropolis - The Numbers Are Out

Those of you who are privy to the highly anticipated Metropolis development have been inquiring about pricing, and rightly so. But pricing wasn't available until now. With floorplans and features being solidified as we speak, these are luxury condos are expected to rival the Residences at the Ritz Carlton, but with even more amenities according to inside sources.

Prices for the first phase will begin in the low $500s and go up to around $3MM for the penthouses. Even though there's still time until completion (ETA is 2016!), the interest has been through the roof with hundreds on the waitlist, deposits and all. Waitlisters get first dibs on the floorplan/unit among other perks, and of course the deposit is refundable if you don't move forward. Send me an email if you'd like to get on the waitlist or to find out more about the Metropolis: yuri@sartparker.com.

Inventory Low in Downtown, Driving Prices Up in Nearby Areas

Inventory has been low in downtown for some time now. 2013 was when the momentum picked up from a lull and people started buying again, which has been keeping inventory low, especially in highly desirable buildings. As you can guess, in the less than desirable buildings, things have been sitting longer. Various reason for this, which I can go over with you another time.

But the overall effect is that inventory has remained low in downtown and has thus driven prices up. In fact, a couple of my clients with a budget who've had their hearts set on DTLA have been outbid and are now looking into the surrounding areas, which are incidentally on everyone's radar too. Namely, NELA, which covers Highland Park, Mt. Washington, Montecito Heights and others. While it's a Gold Line ride away from downtown, you can get more square footage for the price in NELA. With downtown prices at over $550/sf on average, NELA is still about about $465/sf on average.

The Thing About Pricing to Sell...

We're approaching a slow time in downtown. Holidays are near, people are resolving to look again next year, and inventory is low. This also means that properties are sitting on the market longer. And when properties sit, it doesn't look good. Which is when price drops happen. And that gives buyers hope that prices can be dropped even further. Moral of the story if you're putting your place on the market? Know the cycles of real estate, and price accordingly.