Taking Advantage of a Buyer's Market in DTLA

While the suburbs and inner burbs are performing the best, some savvy buyers are snapping up prime property deals in cities like NYC and DTLA.

Recent sales in DTLA:

257 S. Spring #3M

Prime corner unit in a Mills Act Building!

Listed for $825k, sold for $795k

Compass/Berkshire Hathaway

849 S. Broadway #909

Prime unit with balcony unit in a Mills Act Building!

Listed for $675k, sold for $620k

Coldwell Banker

645 W. 9th #724

Penthouse unit with views in South Park

Listed for $535k, sold for $525k

Premier RE/C-21

1855 Industrial St #309

Totally remodeled 2360sf unit with private patio

Listed for $1.850M, sold for $1.69M

Compass

1130 S. Flower St #420

Multilevel Penthouse unit

Listed for $1.495M, sold for $1.32M

Compass

746 S. Los Angeles St #102

Amazing live/work storefront unit in Mills Act Building

Listed for $375k, sold for $340k

Berkshire/EXP

1155 S. Grand #1308

Stunning 2 bed, 2 bath and 2 parking in South Park w/ Views!

Listed for $949k, sold for $865k

Remax/Loftway

416 S. Spring #807

Balcony + Mills Act + Park Views!

Listed for $510k, sold for $465k

KW/Coldwell Banker

DTLA Ranked #2 Coolest Neighborhood in the World by Time Out

Just after Esquerra de l'Eixample in Barcelona, our very own DTLA is #2 out of 40 neighborhoods in the world, for coolest city. 

Full article here: https://www.timeout.com/coolest-neighbourhoods-in-the-world

"There’s a version of this year in L.A.'s resurgent city centre that would’ve only been about how MOCA – the Museum of Contemporary Art – dropped admission fees and the new Hoxton hotel stacked hazelnut pancakes. How coveted co-working space NeueHouse moved into the mezzanine of the beautiful Bradbury Building while the Donut Man readied its legendary strawberry-filled doughnuts across the street at Grand Central Market.

But instead this became the most painful year in L.A.'s recent history – and in a city with no single, central gathering place, Downtown became its supportive soul. Following the shocking death of Kobe Bryant, wreaths, candles and a quiet togetherness swallowed the L.A. Live plaza. When the pandemic kept us doomscrolling at home, the Broad museum brought us a bit of virtual Infinity Room calm, while the now-shuttered Broken Spanish restaurant vacuum-sealed tamales and fed undocumented restaurant workers.

And when the killing of George Floyd made injustice too loud to ignore, Downtown was the place for Angelenos to speak up. It wasn’t without strife, but there was a palpable pivot toward unity the day that thousands streamed through Downtown’s streets. In a year of isolation, DTLA – like no other neighbourhood – has consistently brought us closer to our community. —Michael Juliano, Time Out Los Angeles"

Doing the Opposite of Everyone

Investing mantra #1. Remember the crash of 2008? Anyone who saw opportunity between 2008-2012, while tons of people were jumping ship from their homes, did well

In 2020, what is everyone doing? Everyone is buying in the suburbs. Everyone is paying top dollar to get out of the city. You might think of buying in dense city centers now while prices are more reasonable. 

Something to think about.

Prime Corner Units in DTLA Available

Beautiful units like this don't come on the market often. With this year's COVID shakeup, there's been some amazing opportunities to invest in units that you rarely see for sale. 

 

                                    TEN50 Penthouse 2 - 3930sf - $4.75M

Courtesy of GE Dean & Assoc 

Eastern Columbia # 311- 1740sf- $1.84M

Courtesy of Coldwell Banker

    

ELLEVEN #518 - 2070sf - $1.369M

Courtesy of New Star Realty

EVO # 1709 - 2400sf- $1.82M

Courtesy of Premier Real Estate

Luma # 1315-1316- 2879sf- $3.8M

Courtesy of Premier Real Estate

1100 Wilshire # 3208- 1160sf- $1.33M

Courtesy of Compass

DTLA Sales by Price + Days on Market + Most Popular Price Point

Slow pace of sales, but sales are still happening. Days on the market are longer, as expected when you can't do open houses, and it's a production as realtors have to prepare each showing with COVID related protocols. Everything takes longer and everyone needs to be patient--buyers, sellers and realtors included.

That said, price point in the $400-$600k region are doing best. With this price point, you have the largest pool of buyers. 

Condos are selling for about 97% of their asking price. So a $700k condo is ultimately selling for about $679k. Again, this is an average, some are selling closer to their asking, some are selling for less than 97% of their asking. 

See the graph of the recent solds in the last two months, by price point and Average Days on Market.

  

Off Market Properties in DTLA

Eckardt Lofts - Fashion District

Highlights: 2 rare in-building parking spaces and fire escape balcony unique to only 6 units! City views.

Stats: 2 bedrooms, 1 bath, 960sf

Call 310-869-2655 for pricing

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Douglas Lofts - Historic Core

Highlights: Rare southeast corner with maximum amount of windows all around.

Stats: 2 bedrooms, 2 baths, 1010sf, 1 parking space

Call 310-869-2655 for pricing

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Bartlett Lofts - Historic Core

Highlights: East facing, tons of light from double hung windows

Stats: 1 bedroom, 1 bath, 650sf

Call 310-869-2655 for pricing

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Eastern Columbia Lofts - Historic Core

Highlights: East facing with views of the Orpheum

Stats: 1 bedroom, 1 bath, 1500sf

Call 310-869-2655 for pricing

Chance to Snatch Up Prime Units in DTLA

While some people are leaving DTLA, there are others who are moving in. Some of the best units in the area are coming out of the woodwork for the first time in years, and savvy buyers are taking advantage. 

Penthouse #506 at Pan American Lofts is in escrow!

Asking: $995k

https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-612502

Courtesy of KW Larchmont

Unit #311 at Eastern Columbia Lofts - First time on market in 10 years!

Asking: $1.84

https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-597232

Courtesy of Coldwell Banker DTLA

Unit #404 at Eastern Columbia Lofts

Asking: $1.345

https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-630320

Courtesy of Campbell Wellman

Unit #119 at Barker Block Lofts - Tri-level loft!

Asking: $1.599

https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-560722

Courtesy of The Agency

Penthouse #1207 at El Dorado Lofts - Double level with rooftop patio

Asking: $1.375

https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-608070

Courtesy of Coldwell Banker

Small Survey of Buyers in DTLA - Cities Still Rule

Here's a question I recently posed to several buyers, renters, and current clients of mine. "If there was NO pandemic, and money was no object and you could live in any city in the world, where would you live?" Nearly everyone named NYC, Paris and LA as their choices. This was so interesting and uplifting to hear. Because despite the media bashing cities, in a perfect world, many people want to be living in a nice pad in a big city where there are things like museums, easy transit, restaurants, bars, art galleries, independent shops, and walkability. 

While suburbs are nice, let's face it, you're still outside of the circle of these amazing amenities that cities have to offer. And while remote working is here to stay, the office space in some form will still exist as an option for many companies, and I don't know about you, but there's a growing number of people who are starting to really hate Zoom calls 6-8 hours a day. 

Interesting article about history repeating itself. Market slows, and buyers scoop up at a discount. In this case, Silverstein Properties from NYC is betting on DTLA:

http://www.silversteinproperties.com/commercial-real-estate-media/News/silverstein-properties-acquires-us-bank-tower

Economy and Home Prices Don't Match

The economy is not doing great, yet housing prices and the stock market are high. It doesn't make sense. But if you dig deeper, it does.

The stock market is being propped up by all the stimulus and Fed money printing. Unemployment is still high even as jobs are being created. Are we on the way to recovery? Yes. Will there be another blow? Probably, as many signs are pointing to a potential second COVID wave as well as rounds of layoffs by large companies. This will be the second blow that could lead to the W-shaped recovery everyone is talking about. I still think it might be a square root, depending on how the election goes.

Here's the reality in house in LA. Overall, pretty resilient. People with jobs are still buying because there's now some room to negotiate in certain areas where urban flight is happening. Plus no one wants to miss out on 2% interest rates--it's crazy. And in the inner suburbs like Mid City, Highland Park, Mt. Washington, you're getting multiple offers. Right now, people want outdoor space. They want some distance from neighbors. They want to do DIY on their homes. Average days on the market in inner suburbs? 40. In DTLA? 65. You can't rush things during a pandemic--things are moving slowly, this is just the reality.

Why have LA home prices been so resilient?

The market in urban areas has come down since pre-COVID. On average, in NYC, about -18%, in SF, about -10% and in DTLA, about -4%. (Prices in the more suburban areas of LA are up about +1%)

Why has LA been more resilient? 

1. First, prices in LA were always lower than in NYC and SF. And suddenly, the nice weather, larger spaces and lower prices are looking pretty good when you can transplant yourself anywhere and work from home.

2. Remember, NYC was and still is the hardest hit COVID zone. LA, with it's huge population, has a fraction of the number of cases and deaths. Something is being done right in LA in terms keeping things safer. 

3. People still want a city, and LA, with its proximity to green spaces, mountains, beaches, deserts, etc, is proving to be the ideal place to settle during this uncertain time. 

4. There is a lot more space in LA than in other major cities. The average home size is about 1300sf in greater LA, and that's not including yards and other outdoor spaces. Compare that to 700sf is SF. You do get a lot more space for your money in LA, it's just a fact. 

5. The population. LA has a huge population. Where there is a population, whether employed or not, is going to need basic services, and that means jobs. Why else are companies like Amazon buying up warehouse spaces in LA? Because of demand for goods. 

Good Buys in DTLA Right Now

Higgins #207

French doors to a 150sf private patio. There are only about 40 units in the whole of DTLA with a patio so spacious. The interior is 1250sf. The unit also benefits from huge property tax savings from the Mills Act status of the building. $699k for a piece of history in the former Edison office building.

Courtesy of Coldwell Banker DTLA

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Grand Lofts #708

Penthouse unit, 1110sf, balcony, $800k, yep a penthouse with 2 beds, 2 baths and 2 parking spaces for under a mil, in SOUTH PARK. Grand Lofts #708

Courtesy of The Agency

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Eastern Columbia Lofts #311

A totally unique unit with 14-feet ceilings that only a few units feature, corner loft, plaster crown molding, balcony, 2 bathrooms, rare storage unit in the building, 1 parking space. The interior is 1740sf. The unit also benefits from huge property tax savings from the Mills Act status of the building. $1.898k for this pristine unit at the only Zig Zag Art Deco building in DTLA. 

Courtesy of Coldwell Banker DTLA

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Textile Lofts #404

A corner pied a terre with so much light for under 500k? Mills Act too? And 1 storage unit and 1 parking space. 640sf. The unit also benefits from huge property tax savings from the Mills Act status of the building. $468k for this very cool little unit.

Courtesy of Coldwell Banker DTLA

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Douglas Lofts #4D

Charming open plan loft at the historic Douglas Building. Mills Act too, and 1 underground parking space IN THE BUILDING! 740sf. The unit benefits from huge property tax savings from the Mills Act status of the building. $549k.

Courtesy of Coldwell Banker DTLA

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Elleven #615

LEED certified building in SOUTH PARK! 1670sf.  Immaculate 2 bed, 2 baths, 2 parking spaces! $998k.

Courtesy of Keller Williams

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1100 Wilshire #2412

View of the Hollywood sign and the ocean! 12-feet ceilings, walk in closet, 2 parking spaces IN THE BUILDING! 790sf. $535k. Plus it has one of the most amazing pool decks in the whole of DTLA.

Courtesy of REH Real Estate