Game Changing Development For Southpark

First it was L.A. live. Then came Evo, Luma, and Elleven that changed the area.  The next significant condo developments to change the area in the next few years and increase values for the surroundings:

1. METROPOLIS - 18-story hotel, 38 story condo, 40 - story condo,  56-story condo with luxury retail space.

2. FIG CENTRAL - 53-story and 38-story towers with luxury condos and the Roberto Cavalli  Hotel.

3. CIRCA - Two 35-story towers with approx 650 luxury apartments for lease.

4. 1020 S. FIGUEROA - 42-story,  650 unit condos and 32-story W Hotel.

5. TEN 50 - 25-stories, 121 boutique style condos.

DTLA is one of L.A.'s Prime Markets

2015 has been a good year for real estate, and very good for downtown.  Check out the numbers for Q3 on condos:

[Neighborhood]  [Avg Sale Price]  [Avg Price Per SF]

DTLA.                         $807,808.                $642!!!
Beverly Hills.            $1,342,739.             $697
Brentwood.               $832,412.                $541
Hollywood.               $1,087,838.             $658
Malibu.                      $939,607.                $595
Mid Wilshire.           $628,684.                $422
Pacific Palisades.     $1,058,011.             $598
Santa Monica.          $1,242,651.             $887
Silverlake.                 $716,657.                $529
Sunset Strip.             $787,375.                $574
Venice.                       $1,468,500.             $739
West Hollywood.     $876,579.                 $629
West L.A.                   $774,557.                $503

Pocket Lease - Eastern Columbia Loft #510 with Balcony

Presenting the beautiful 1200sf loft in the coveted Eastern Columbia building. The open plan loft gets lots of sunlight through oversized windows, and features a balcony that faces West. The L-shaped loft is ideal for separating out a bedroom area. Nice chef's kitchen with stainless steel Viking appliances, an designer bathroom with tons of storage, and dark polished concrete floors. The building has a rooftop pool, gym, a front desk with security, courtyard and grand lobby. 1 covered, garage parking space is included. Within a 3 block radius you have Whole Foods, Ralphs, Ace Hotel, Terroni, APC, Acne, Oak, Aesop, Stocking Frame, Umami, Wood Spoon, Pattern Bar, United Artists Theater, The Orpheum, Spring Arcade, 1810, Austere, Bnkr, Urban Outfitters, New Moon, Verve Coffee, Il Cafe and more. Asking $3300 per month. Contact yuri@mytownsquare.com to schedule a viewing.

Why DTLA is So Hot

The real estate situation in downtown these days can be summed up in two ways: Homeowners are thrilled at the rising prices and buyers are frustrated at the rising prices. Many are wondering when the prices will go down. In my opinion, prices won't go down because prices are similar to the prices in 2007. The same condo bought in 2007 is still around the same price now, if not a bit higher. It's as if prices have stood still for nearly a decade. Now, if you bought in the golden window of 2010-2012 like I advised most of my buyer clients to do (as well as myself), and you still own that property (myself included), then you killed it.

So why is DTLA showing signs of bigger increases than other parts of LA? A few reasons:

1. DTLA is still way more affordable than the Westside. $2500 per month in downtown will get you a highrise condo with a pool, spa, front desk security, parking, and dog run. In the Westside, the same price will get you a 3-story late 60s walkup with carpets and a 90s kitchen.

2. DTLA condos have character. You get a lot more character in a historic former bank building that is designated with the Mills Act than with a 70s aluminum-windowed box. Where else in L.A. can you find such a high concentration of historic buildings?

3. DTLA walkability & transportation. With markets (including Whole Foods), bars, restaurants and shopping centers springing up all around, it's getting easier and taking less time to stroll over to run errands and just enjoy nightlife without thinking of the drive home. Uber and Lyft is highly concentrated in DTLA, and costs about $6 to get from any point within downtown. Plus the Metro will take you straight to Santa Monica soon--it already goes to Culver City and Hollywood!

4. DTLA is just beginning. You know when investors from New York and San Francisco start to snatch things up, things are happening. Savvy investors have seen areas like SoHo, Brooklyn, SoMa go from blight to some of the most expensive real estate in the world. And they are buying up trophy buildings and attracting a new type of retail and commercial clientele. The Ace Hotel is a prime example. Soon after you had Acne, APC, Oak, Aesop and Tanner Goods follow.

5. DTLA and rent control. Investors, this is for you. The fact that so many people spend their hard earned money on a duplex that generates what's essentially 1980s income is beyond me. Because nearly all residential property in DTLA was developed into residential housing well after 1978, rent control rules don't apply. This makes downtown a very nice place to invest.

Great DTLA Historic Lofts on the Market Now - All with Mills Act Designations

What's so great about having property in a Mills Act building? Savings on property taxes. As you know, property taxes in Los Angeles are high. The Mills Act designation helps offset some of this tax burden. This could end up saving you thousands per year in taxes. The Mills Act only applies to select historic buildings.

Eckardt Building

Former warehouse in the Fashion District

Penthouse #1201

1760sf, 3 bed, 2 bath

Private patio, split level, Mills Act

$1.399MM

El Dorado Building

Former Historic Stowell Hotel

#305

1090sf, 2 bed, 2 bath

2 balconies, Mills Act

$749K

Eckardt Building

Former warehouse in the Fashion District

#203

880sf, 2 bed, 1 bath

Private patio, Mills Act

$519,995 

Rowan Building

Former office building in the Historic Core

#617

830sf, 1 bed, 1 bath

Mills Act

$588K

Eckardt Building

Former warehouse in the Fashion District

#208

810sf, 1 bed, 1 bath

Skyline views, Mills Act

$429K

Biscuit Co. Lofts

Former warehouse in the Arts District

#402

617sf, 1 bed, 1 bath

Skyline views, Mills Act

$535K

 

Eastern Columbia Lofts

Former department store in the Arts District

#410, 1200sf, $749k

#707, 1130sf, $749k

#202, 1150sf, $749k

#1009, 1190sf, $899k

Mills Act

More Activity in the Arts District - Barker Block & Biscuit Lofts

DTLA Arts District has become one of the most valuable areas in which to invest. Prices have been steadily rising, and it's no wonder with developments of theaters, galleries, shops, restaurants, GROW market, upcoming SOHO House, Garey Lofts, @Mateo, revitalization of the Coca Cola Building, etc.

Three new lofts available for sale:

Barker Block #542 - 1110sf - 849k

Russell Roney, KW

Barker Block #424 - 1070sf - 750k

Ted Trentman, Realty Source

Biscuit Lofts #114 - 980sf - $748k

Gil Saraf, KW

Activity in the Arts District - Biscuit Lofts and Molino Lofts

The Arts District of DTLA has been hot for a while now. Prices climbing every year, more residents moving to the area, and lots of retail and businesses locating there. Compared to other warehouse districts in NY SF, Austin, Shoreditch in London, it's still a very sparse area. And those who are getting in early are able to snag oversized spaces and units in Mills Act buildings. See below.

Molino Lofts #118
This super loft is currently being used as an office. It is a live/work building and a wonderful investment in a hot area. 2560sf, with original brick walls, updated kitchen, 3 enclosed offices, 2 bathrooms, 1 assigned parking space. Steps from Urth Cafe, Little Tokyo, Zinc, The Springs, Blue Bottle. There is a rooftop pool, gym, sundeck. Asking $1.199MM


Biscuit Co. Lofts #402
This loft in the historic and Mills Act designated building would make for a wonderful pied a terre in the Arts District. 617sf, with original brick wall details, updated stainless kitchen and 1 assigned parking space. There is a lap pool, gym, 24 hour front desk security. Steps from Church & State, Daily Dose, Stumptown Coffee, Bestia, Little Bear, Pour Haus, Zinc, The Springs. Asking $545k.

Split Level Penthouse Warehouse Loft - Barker Block #525

Hard to expect much more from this loft. Great views, privacy, and top floor location, skylight, lofted bedroom, super tall ceilings, 2 bathrooms, parking, etc. Plus it a live/work loft in the Barker Block building, the darling of the Arts District. Developed 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. Walk to Black Top Coffee, Zinc Cafe, Bestia, Church & State, Bread Lounge, Stumptown Coffee, Wurstkuche and more. The stunning loft features original wood beams, beautiful wood floors and sleek kitchen. Includes one assigned parking space. 1230sf. Listed at $999k. 

Get an Art Deco Pied a Terre Before The May Co. Building is Completed - Eastern Columbia #202

The jewel of downtown, Eastern Columbia, has a new unit available for sale. #202 offers concrete floors, stainless steel kitchen appliances, bathroom designed by Kelly Wearstler. The building features a rooftop pool, front desk security, courtyard, gym. Price have been consistently rising with the recent addition of the Ace Hotel, Acne, Tanner Goods, Oak, Aesop, Om Nom Organics, Il Cafe, Urban Outfitters, APC, and soon to arrive just steps away is the revamped May Company Building (to be creative office space, retail, etc.), Clifton's, Big Gay Ice Cream, Case Hotel,  Empire Hotel, and more. 1150sf, 1 parking space. Faces historic Broadway. Asking $790k.

Historic DTLA Loft Living at its Best - Eastern Columbia and The Rowan

Lofts for sale at the two of the most desirable Art Deco and Beaux-Arts buildings in DTLA. Both are Mills Act buildings (prop tax savings!) and have front desk security and are located in the most walkable areas of downtown.

Eastern Columbia loft with a balcony! West facing loft, concrete floors, stainless steel appliances, Italian cabinetry, Kelly Wearstler designed bathroom, 1 parking space. Building has a rooftop pool, gym, courtyard. 1080 sf, $749k. Unit 909.

Rowan Loft with hardwood floors, original double hung windows, exposed brick, Italian kitchen cabinetry. Parking spaces available for a fee. 820sf, 649k. Unit 909.

Two-story Penthouse with Private Rooftop Deck - Higgins Lofts #1004

Rare penthouse pad in DTLA. The top floor loft in the historic Higgins building has a mezzanine that is perfect for an office, guest bedroom or master bedroom as it leads straight up to a private rooftop deck with views of the downtown skyline. There is a skylight that lets in amazing light and 22' tall ceilings. Features 980sf of indoor space, and approx 200sf of outdoor space. Has 1 bathroom. The Higgins Building holds the Mills Act distinction which helps reduce property taxes.

DTLA is in the Top 5 Most Expensive Places to Rent in Los Angeles County

According to Zumper, DTLA has among the highest median rent prices for 1 bedrooms, even topping Beverly Hills and Bel Air. From highest average prices:

1. Santa Monica -$3160
2. Ocean Park - $2700
3. Venice - $2560
4. Marina de Rey - $2520
5. DTLA - $2410

Those looking into investment properties should be looking into DTLA. And did I mention no rent control as well?

Historic Mills Act Pied a Terre in the $300s

It's still possible to get a historic loft in a wonderful walkable neighborhood in the 300s, in a Mills Act Building. This loft in the lovely Rowan building faces the Spring Street Park and features large double hung windows, exposed brick, Scavolini kitchen, Bosch washer/dryer in the unit, and an open plan layout. The Rowan has a doorman, BBQ patio, hot tubs, and a resident lounge. Walk to  the Farmers Market, Buzz Wine, Bar Ama, Orsa and Winston, Spring for Coffee, The Continental, Spring Street Arcade, Ace Hotel, Terroni, Nickel Diner, Verve Coffee and more. 460sf, 1 parking space with option to lease another. Asking $378k.

Currently Available Industrial Lofts in DTLA

Simply put, there are usually two kinds of lofts--industrial and architectural. The architectural ones are generally the conversions from former bank buildings, offices (think Rowan Lofts, Douglas Lofts, Eastern Columbia Lofts) that have a lot of beautiful character intact, both inside and out. The industrial ones are often conversions too, but have generally been adapted from factories, warehouses or showrooms (think Biscuit Company Lofts, Toy Factory, Barker Block, Textile Lofts).

Below are industrial lofts currently available for sale in these unique buildings:

FLOWER STREET LOFTS IN SOUTH PARK (Formerly a UPS Shipping Hub)

Penthouse Loft #416 - 1648sf - $800k

Loft #215 - 1260sf - $750k

Loft #117 - 1483sf - $683k

BARKER BLOCK LOFTS IN THE ARTS DISTRICT (Formerly the Barker Brothers Furniture Factory & Warehouse)

Loft #424 - 1070sf - $849k

Can You Believe, Prices Haven't Risen in 8 Years?

Here's the reality: prices have risen since 2010. A lot. Then why are so many people clamoring to buy homes, often overbidding?

Because we're barely starting to match 2007 prices. So, look at it this way: prices have not gone up in about 8 years. The price people paid in 2007 is actually more than what people are paying now, which is why some people are still holding on until prices rise even more.

Two Side by Side Units for Sale in the Financial District - 655 Hope #1004 & #1005

It's so rare to have two units come on the market that are side by side, especially in a boutique-style building with only 80 units. Combine the units into one super loft. One of the units is a corner unit with southward views down Hope Street and to the east. Each unit features two full bathrooms with luxury finishes, sleek dark hardwood floors, walk in closet, tall ceilings laundry inside, storage unit, 1 covered garage parking space. Building has a front desk security guard, rooftop deck with BBQ, gym, conference room, and is conveniently accessible to the Metro Red Line. Walk to Bottega Louie, The Bloc, Seven Grand, Fig & 7th, The Standard Hotel, Jewelry District and more. Each unit is nearly 1200sf, and each is asking $799k.

 Courtesy of Jin Lee, Stanford Raffles Realty

DTLA Properties Over 1400SF

Large condos are few and far between in downtown. Developers are chopping up units into smaller and smaller spaces to get the most money for their investment. When you're starting to see 700sf studios going for $400-%500k, suddenly 900sf is considered spacious for a 1 bedroom. With size becoming a premium in the area, properties that are over 1400sf are becoming more rare and will hold value in the future.

Some available "oversized" properties:

Flower Street Lofts #108 - 1424sf - $710k

Courtesy of Christiano Sampaio, Loftway

Market Lofts #312 - 1460sf - $800k

Courtesy of Edward Park, Stanford Raffles

Sky Lofts #1204 - 1640sf - $969k

Courtesy of Ivan Pan

EVO #1703 - 2070sf - $1,390,000

Courtesy of Yumiko Cato Lee, The Real Estate Group

Elleven #1018 - 2070sf - $1,450,000

Courtesy of Kerry Marsico, Coldwell Banker

Rent Prices in DTLA in the Newest Buildings

According to Downtown News, rent prices are higher than ever in DTLA. Not surprising since it's become a destination as well as a neighborhood with an ever-growing list of amenities. And most of all, the ability to walk and bike everywhere within minutes. This lifestyle is new for LA, and it's become one of the most desirable things about DTLA, and a lot of people agree. The demand for housing in downtown has become so great that rent prices, as well as condo prices, have increased dramatically in the past few years. And there are no signs of slowing down.

A snapshot of rent prices in these newly constructed buildings, according to Downtown News:

The Emerson
800sf - Approx $3,295 a month. That’s $4.12sf.
Corner two-bedrooms averaging 1,175sft are $4,995 a month, or $4.25sf.

Ava Little Tokyo 
625sf, for $2,510, or $4.02sf.
A two-bedroom unit with 964sf was offered for $2,798, or $2.90sf.

One Santa Fe
$2,010 for 526sf, or $3.82sf.
Two bedrooms start at $2,635 for 899sf, or $2.93sf.

Hanover South Park
709sf for $2,335, or $3.29sf.
Two-bedroom units with 1,050sf were listed at $3,330, or $3.17sf.

Avant
694sf for $2,162, or $3.11sf.
A $2,957 two-bedroom had 1,045sf, for an average of $2.83sf.

Rents in condo buildings in DTLA:

Higgins Building
$2200 for 750sf, or $2.95/sf

1100 Wilshire
$2500 for 750sf, or $3.33sf

Eastern Columbia
$2900 for 1120sf, or $2.59sf

Mura
$2800 for $1240sf or $2.26/sf

Flower Street Lofts
$3000 for $1420sf or $2.11sf

Elleven
$2400 for 970sf or $2.47/sf

Barker Block
$2500 for 890sf or $2.81sf
$4900 for 2630sf or $1.86sf

One-of-a-Kind Loft Compound by DTLA & Cornfield Park - 1411 N. Broadway

Beautifully reimagined space in a former auto factory. The original bones of the building still intact, the space has undergone a transformation that will impress. 4000sf of renovated living space is matched by a flow into the outdoor private oasis, complete with rain shower and bath. This is a rare opportunity to own a converted residence that is in essence a private compound within a bike ride to the center of DTLA and across the road from Cornfield Park. Minutes to Highland Park, Frogtown, Atwater, Echo Park, Elysian Valley, Brewery, etc.  2 bedroom areas with bonus mezzanine loft, 2 full baths, 2 additional half baths plus outdoor bathing retreat. 2 Parking spaces within courtyard grounds. Total lot is nearly 7000sf. Asking $2.495MM.

Historic Corner Loft for Sale - Rowan Loft #1016

Beautiful, restored *corner!* loft in the heart of the historic core and Spring Street bustle with views of the park and Spring St. This 10th floor loft in the historic Rowan building boasts original oversized windows, hard wood floors, original brick walls, and separated bedroom area. 1 bathroom and access to 1 parking space. The loft is 720sf and the asking price is $515k. The Rowan is a Mills Act designated building.

Art Deco Stunner with Balcony - Eastern Columbia #710

West facing unit in the iconic Art Deco Eastern Columbia building, known as the jewel of DTLA and developed by The Kor Group. The unit features beautiful banks of windows, polished concrete floors and lots of sunlight. Best of all, your own private balcony with plenty of sunlight and sunset views. Comes with 1 parking space, and building amenities include a 24-hour concierge, gym and fabulous rooftop pool. Walkable to Spring Street, Ace Hotel, Acne, Wood Spoon, Oak, Umami, Alma, Pellicola, Sparkle Factory, Grand Central Market, and more. Listed for $739k with 1200sf of space. This building is also Mills Act approved.

Buying is Cheaper Than Renting in LA & SF

According to a recent study by C.A.R., "San Francisco and Los Angeles are two of the least affordable rental markets." DTLA is a prime example where a studio easily rents for $2000/mo and 1 bedrooms average around $2500/mo. If you're able to save for a $15% downpayment, then you might consider buying instead of renting because of the benefits of the year-over-year equity value increases and mortgage interest write-offs. Ask your accountant what makes sense and maybe 2015 will be the year to buy...

Historic Lofts for Sale with Good Resale Potential

It's one thing to get a deal on a property; it's also another thing to make sure the property has good resale value for when you decide to one day sell. Size, orientation and location are things that are often uncompromisable when it comes to resale.

Some interesting props below with good resale potential:

Toy Factory Loft in the Arts District #515

1428sf

Asking $819k

Stamie Karakasidis, Rodeo Realty

  Barker Block Lofts in the Arts District #450

1120sf

Asking $649k

Neil McDermott, Hilton & Hyland

Rowan Lofts in the Historic Core #712

2 beds, 2 baths 998sf

Asking $649k *Mills Act Building*

Anh Tran, KW

Rowan Lofts in the Historic Core #915

1 bed, 1 baths 820sf

Asking $620k *Mills Act Building*

Agnes Ferreyra, JAG

Rising Prices in South Park

Just last year, South Park prices were hovering around $580-$640/sf. This year, a 1 bedroom condo at EVO sold for one the highest prices in EVO history at $714/sf. Luma and Elleven prices, along with Grand Lofts and Flower Street Lofts have increased in value. And the prices haven't slowed down largely due to the amazing transformation happening in the immediate neighborhood.

Just to name a few game-changing projects that are underway:

1. Metropolis luxury condos on Franscisco Street
2. Fig Central Condos and Roberto Cavalli Hotel on Figueroa & 11th
3. Ten50 Condos on Grand & 11th
4. Whole Foods Market on 8th & Grand
5. Fig South condos and retail on Figueroa & 12th

DTLA Open Houses This Sunday 4/5

South Park
1111 S. Grand #510 - 1-4pm
1111 S. Grand #708 - 2-5pm

City West
1234 Wilshire Bl. #511 - 2-4pm

Arts District

530 S. Hewitt #450 - 11-2pm

Little Tokyo
420 S. San Pedro #515 - 2-4pm

Historic Lofts for Sale - Biscuit Lofts, Toy Factory Lofts and Textile Lofts

Inventory is super low in DTLA, what's new? About 80 properties for sale in the whole of the downtown. Below are recently available properties in great buildings. Check them out at their open houses on Sunday 3/22. UPDATE: All of the properties below have accepted offers.

2-Story Penthouse Biscuit Loft in the Arts District #714

1 bed, 2 baths, 2 parking, 2031sf, private terrace. 

Asking $419k *Mills Act Building*

PLG Estates

Toy Factory Loft in the Fashion District #603

1 bed, 1 baths, 1 parking, 976sf.

Asking $599k 

 Berkshire Hathaway

Textile Loft in the Fashion District #206

1 bed, 1 baths, 1 parking, 890sf, private terrace. 

Asking $495k *Mills Act Building*

Benjamin Hill

DTLA Lofts Selling Quickly

Two lofts I mentioned previously, Textile #505 and Biscuit #608 are now in escrow. The reasons these went pretty quickly: They are priced really well, Biscuit & Textile are Mills Act buildings, and are located in very hot pockets of downtown.

Great Opportunities Under $500k from Historic Core to Arts District

Textile Loft in the Fashion District - 1 bed, 1 bath, 670sf

Asking $419k *Mills Act Building*

Biscuit Co Loft in the Arts District - 1 bed, 1 bath, 630sf

Asking $498k *Mills Act Building*

Pan American Loft in the Historic Core - 1 bed, 1 bath, 1040sf

Asking $485k 

Number of Renters Continue to Rise

According to a new report by New York University’s Furman Center, there has been an increase in renters around the country. "For many, slow income growth and a lack of savings are the reason for renting over buying even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country. 'As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,' Ingrid Gould Ellen, the Furman Center’s faculty director."

It’s a renter’s world out there.
Major U.S. cities are seeing an uptick in the amount of renters compared to homeowners, according to a new report by New York University’s Furman Center and Capital One.
Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
Rents grew faster than inflation in all of the 11 largest metro areas in the country, except for Dallas and Houston where rates remained flat, according to the report. Washington D.C. saw the biggest rent increase, with a 21 percent jump in median rent.
Philadelphia had the lowest percentage of renters in 2013, with 44 percent. Across the country, 36 percent of households are being rented, while 64 percent were owner-occupied. Developers and economists expect that the trend of renting over owning will continue. [WSJ] — Claire Moses 
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

It’s a renter’s world out there.
Major U.S. cities are seeing an uptick in the amount of renters compared to homeowners, according to a new report by New York University’s Furman Center and Capital One.
Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
Rents grew faster than inflation in all of the 11 largest metro areas in the country, except for Dallas and Houston where rates remained flat, according to the report. Washington D.C. saw the biggest rent increase, with a 21 percent jump in median rent.
Philadelphia had the lowest percentage of renters in 2013, with 44 percent. Across the country, 36 percent of households are being rented, while 64 percent were owner-occupied. Developers and economists expect that the trend of renting over owning will continue. [WSJ] — Claire Moses 
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

It’s a renter’s world out there.
Major U.S. cities are seeing an uptick in the amount of renters compared to homeowners, according to a new report by New York University’s Furman Center and Capital One.
Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
Rents grew faster than inflation in all of the 11 largest metro areas in the country, except for Dallas and Houston where rates remained flat, according to the report. Washington D.C. saw the biggest rent increase, with a 21 percent jump in median rent.
Philadelphia had the lowest percentage of renters in 2013, with 44 percent. Across the country, 36 percent of households are being rented, while 64 percent were owner-occupied. Developers and economists expect that the trend of renting over owning will continue. [WSJ] — Claire Moses 
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

It’s a renter’s world out there.
Major U.S. cities are seeing an uptick in the amount of renters compared to homeowners, according to a new report by New York University’s Furman Center and Capital One.
Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
Rents grew faster than inflation in all of the 11 largest metro areas in the country, except for Dallas and Houston where rates remained flat, according to the report. Washington D.C. saw the biggest rent increase, with a 21 percent jump in median rent.
Philadelphia had the lowest percentage of renters in 2013, with 44 percent. Across the country, 36 percent of households are being rented, while 64 percent were owner-occupied. Developers and economists expect that the trend of renting over owning will continue. [WSJ] — Claire Moses 
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpufv

It’s a renter’s world out there.
Major U.S. cities are seeing an uptick in the amount of renters compared to homeowners, according to a new report by New York University’s Furman Center and Capital One.
Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
Rents grew faster than inflation in all of the 11 largest metro areas in the country, except for Dallas and Houston where rates remained flat, according to the report. Washington D.C. saw the biggest rent increase, with a 21 percent jump in median rent.
Philadelphia had the lowest percentage of renters in 2013, with 44 percent. Across the country, 36 percent of households are being rented, while 64 percent were owner-occupied. Developers and economists expect that the trend of renting over owning will continue. [WSJ] — Claire Moses 
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

SOLD - Corner Unit at Historic Rowan Lofts #811

Beautiful, restored *corner!* loft in the heart of the historic core and Spring Street bustle. This 8th floor loft in the historic Rowan building boasts original oversized windows, hard wood floors, original brick walls, and separated bedroom area. 1 bathroom and access to 1 parking space. The loft is 940sf and the asking price is $649k. The Rowan is a Mills Act designated building.

DTLA Open Houses This Sunday 2/8

South Park
1155 S. Grand Ave #412 - 2-4pm
1155 S. Grand Ave #703 - 1-4pm
1100 Hope St. #510 - 1-4pm
1100 Hope St. #1204 - 1-4pm
645 W. 9th St. #214 - 12-3pm
645 W. 9th St. #208 - 11am-3pm
630 W. 6th St #202 - 12-3pm

Historic Core
416 Spring St #409 - 12-4pm
108 2nd St., #510 - 1-4pm

Arts District
530 S. Hewitt #440 - 1-4pm
510 S. Hewitt #107 - 1-4pm

Little Tokyo
420 S. San Pedro St. #206 - 2-4pm
420 S. San Pedro St. #220 - 1-4pm
420 S. San Pedro St. #529 - 2-4pm
267 S. San Pedro St. #317 - 1-4pm
267 S. San Pedro St. #623 - 1-4pm

City West
1100 Wilshire #2001 - 1-4pm
1100 Wilshire #2702 - 1-4pm
1100 Wilshire #1901 - 2-4pm

Bunker Hill
800 W. 1st St. #2810 - 1-4pm
800 W. 1st St. #2407 - 1-4pm
800 W. 1st St. #1404 - 1-4pm
880 W. 1st St. #319 - 1-4pm

California Housing Forecast for 2015

Good news for homeowners: according to a study by the California Association of Realtors, the annual median price for 2014 rose 9.8 percent year over year and will further increase by 7.1 percent in 2015.

SOLD - Art Deco Icon Meets Modern Luxe - Eastern Columbia Loft #806

South facing unit in the iconic Art Deco Eastern Columbia building, developed by The Kor Group. The unit features beautiful banks of windows, polished concrete floors lots of sunlight. Comes with 1 parking space, and building amenities include a 24-hour concierge, gym and fabulous rooftop pool. Walkable to Spring Street, Ace Hotel, Umami, Figaro, Alma, Pellicola, Sparkle Factory, Grand Central Market, and more. Listed for $729k with 1120sf of space. This building is also Mills Act approved.

Currently Available DTLA Properties Over 1500sf in Size

The fact is, developers are chopping up units like never before. Many of the upcoming new condos and conversions will be a higher price per sf (and more compact) than things were in 10 years ago. If you own a loft that's 1500sf or more, then hold on to it. As price per sf increases, you'll be sitting pretty. 1500+sf properties available now in DTLA:


Barker Block Loft #335 - 1620sf - $935k

EVO #613 - 1820sf - $1.195MM
EVO #1909 - 2400sf - $1.795MM
EVO #2303 - 3973sf - $3.4MM

Luma #701 - 1628sf - $1.299MM
Luma #402 - 1770sf - $1.175MM

Market Lofts #212 - 1583sf - $875k

Molino Loft #215 - 2657sf - $1.0888MM
Molino Loft #306 - 1810sf - $935k

Ritz Carlton #41B - 1980sf - $2.438955MM
Ritz Carlton #45E - 3170sf - $2.95MM
Ritz Carlton #50E - 2370sf - $3.25MM

Toy Warehouse #6 -  1778sf - $850k

1100 Wilshire #2702 - $1600sf -  $1.195MM

SOLD - Spacious 2 Bed, 2 Bath, 2 Balconies Overlooking Spring St Park - El Dorado Loft #409

Spring Street at it's best--a 2 bedroom, 2 bath loft with 2 private balconies overlooking Spring Street Park as the historic El Dorado building, formerly the home of Charlie Chaplin. Nearly 1400sf, the loft boasts stylish, high quality finishes such as built-in stainless steel Bosch appliances, Snaidero Italian cabinets, granite countertops, added island w/ additional storage, under-cabinet lighting, Franke stainless steel dual-basin kitchen sink, deep soaking tubs, ventless washer/dryer, pre-wired for speakers and surround sound, huge walk-in closet, coat closet and linen closet with built-in shelves. Building is Mills Act approved for significant tax savings. Asking $775k.

Courtesy of Jeremy McGinnis, Kobeissi Properties

Buy Low, Sell High

It seemed that not long ago, shortsales and foreclosures were the norm. Those who borrowed badly lost out, but DTLA fans made a killing buying up properties that were oftentimes half of what the previous owners had paid. Now that we're pretty much back at the height, many happy owners are following the old investing adage: buy low and sell high. The really savvy owners are buying low, selling high, and then buying two. Recent client scenario: he sold high, and is using his sizable net profit for downpayments on two properties because borrowing is so cheap right now. He will live in one and rent out the other. And guess what? Because rents are so high, the tenant will end up paying for my client's mortgage, with some extra cash flow to boot. The plan is to hold onto both properties for the next 6-10 years, then sell one off when the value goes up. Seriously, everyone should be doing this.

What about those who didn't buy low? You do the other savvy thing: buy and hold. Then in 6-10 years, when the skyline of downtown has become littered with luxury condos and double the amount of restaurants and retail, then you can sell and upgrade or buy some vacant land to sit on :)

DTLA Open Houses This Weekend 1/24-1/25

South Park
1155 S. Grand Ave #810 - Sunday 1-4
1100 Hope St. #510 - Sunday 1-4

Historic Core
416 Spring St #408 - Saturday 2-4

Art District
1855 Industrial St.#615 - Sunday 1-4
825 4th St #209 - 12-4 - Sunday 1-4

City West
1100 Wilshire #2510 - Saturday 2-4
1100 Wilshire #2001 - Saturday 1-4
1100 Wilshire #2702 - Saturday 1-4
1100 Wilshire #1908 - Saturday 1-4

SOLD - Art Deco Pedigree, Priceless City Views - Eastern Columbia #1106

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 in the next 3-5 years 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 11th floor unit features more than 1130sf of space, has a great layout with open floorplan. Faces south for lots of daytime sunlight. Includes 1 parking space. Offered at $799,000.

Snatched Up Within the Last 30 Days

Things are moving in DTLA. Good stuff is moving fast. If you missed out, better luck next time.

Douglas Loft #4B

Barker Block #540

EVO #2304

655 Hope #1002

Eastern Columbia #1005

Biscuit Lofts #305

Gallery Loft #2

Luma #1102

El Dorado Loft #707

El Dorado Loft #1106

SOLD - Spacious Loft in Coveted Art Deco Gem - Eastern Columbia #M11

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 Mezzanine level unit features more than 1800sf of space, has a great layout with open floorplan and partially enclosed bedroom areas. Faces west for lots of daytime sunlight, has 2 beautiful bathrooms and an entertainer's kitchen. Includes 1 parking space. Offered at $799,000.

SOLD - Historic Loft with Huge Windows and Views - Rowan Building #1102

Own your own historic pied a terre with views. Beautiful, airy loft at the lovely Rowan Building on bustling Spring Street. Beautiful, spacious restored loft in the heart of the historic core boasts lovely east 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 $490k. Parking available in the adjacent building for a fee. The Rowan is a Mills Act designated building which saves you on property taxes.

SOLD - Spacious Industrial Loft in Art District South - Toy Factory #615

Arts District live/work loft that is a true warehouse conversion featuring polished concrete floors and stainless steel appliances. 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, Zinc, and just a couple blocks from Bestia, Stumptown, Bread Lounge, Blue Bottle Coffee, Factory Kitchen, etc. This pristine loft features upgrades throughout, and great natural light from massive windows. Listed at $849k for 1428sf of space. Has 1 bath and 1 parking space.

The Ever-Changing South Park Neighborhood

DTLA gets more well-rounded by the year. The majority of DTLA used to be historic buildings with a decent amount of 60s as well as 80s buildings that were developed along the financial district environs. Now there are sleek skyscrapers going up everywhere, and it's hard to keep up. South Park, with its large number of flat ground-level parking lots has undergone the most significant, skyline altering changes in recent years, and with every new building since 2009, the values of resale condos and loft has increased and rents continue to soar. What's fueling all this is the amazing development are projects such as The Ritz Carlton, The Courtyard Marriott, Fig & Central, where the Roberto Cavalli Club is set to be, and Metropolis, the luxury condo and hotel compound that will kickstart an influx of luxury boutiques coming in. It's also what's making South Park one of best investments.

SOLD ABOVE ASKING - Top Floor, Balcony, Nice Views - Barker Block #540

Hard to expect much more from this loft. It's got a lot going for it--private balcony, great views, privacy, and top floor location. Plus it a live/work loft in the Barker Block building, the darling of the Arts District. And it's the lowest priced Barker Block unit in a while. 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 loft features original wood beams, beautiful polished concrete floors and sleek kitchen. Includes one assigned parking space. Listed at $550k.