Amazing Deals in DTLA Right Now

SOUTH PARK

Flower Street Lofts #123

A double-story, 1423sf loft with 2 bathrooms and 2 parking spaces for $439/SF. 

Unreal, this is like 2012 prices. Asking $626K.

KW, Joseph Iulucci

ARTS DISTRICT

Barker Block Lofts #131

Double story 2+3, 2830 super loft with 2 parking spaces. Priced at $521/SF.

Asking $1.475M

Compass, Thomas Atamian

SOUTH PARK

Market Lofts #412

2+2+Den, 2 parking spaces, 1460SF

Within 2 blocks of The Bloc, Whole Foods, 10 min walk to Crypto.com Arena, etc.

Asking $799K

ReMax, Art Avaness

FASHION DISTRICT

Cornell Lofts #602

1+1, 740sf, 1 parking space, Mills Act

Calstar, Jasmen Vartanian

FASHION DISTRICT

Textile Lofts #901

2+2, 1 parking space, 1 private storage unit, 1370SF, Mill Act

Stunning corner unit with massive factory pane windows

KW, Pete Buonocore

It's Time to Get Real About 2023

Let's face it, selling as-is, 20% over asking and within 7 days, is so 2021. 2022 has been humbling to a lot of sellers, and the ones that were aware of the softening market, and the obvious outcome of doubling interest rates, still won out. These sellers priced accordingly, prettied up their properties, staged them, and still sold at or above list price before the market fell further. 

And there will be more slowdown in 2023. I don't think there will be a massive contraction, but unless there is a big interest rate cut, the housing market will stagnate. Don't get me wrong, there are still a lot of wannabe buyers out there, but the rates are hindering them, and the recent price slowdowns are not enough to get them to make the move just yet. 

So if you're needing to sell, upgrade to a larger house, sell to relocate, etc., it's time to get real. Be prepared to pay for rate buy-downs for buyers, spend a couple thousand on painting or staging, and at the very least, declutter. And be real about what's going on in the market. Just because your neighbor sold for $1M three months ago, doesn't mean that your similar property is going sell for the same or more 3 months from now. 

ULA or the "Mansion Tax" Passes, Effective in March and April 2023

Measure ULA has passed. It is called the "Mansion Tax" as it affects properties, residential or commerical, valued at more than $5M. 

Editorial: Measure ULA is the best gift Karen Bass could get as mayor - Los Angeles Times (latimes.com)

Here's what you need to know:

Beginning March 1, 2023, for City of Santa Monica property owners and April 1, 2023 for City of Los Angeles property owners, two new tax measures will have a significant impact on all Real Estate transactions valued at $5 million and above. Please take a quick moment to read the following information regarding these tax measures, which both passed during the most recent election in November. If you've considered selling and your property is valued at more than $5M, you might want to consider selling before these dates.

Measure ULA, a new tax law specific to the city of Los Angeles, will take effect on April 1st, 2023:

Properties sold at $5 million or above will incur a total transfer tax of 4.6% (additional 4% tax), and properties sold at $10 million or above will be taxed a total 5.7% (increase of 5.5%).

Measure GS, a tax law specific to the city of Santa Monica, will take effect on March 1st, 2023:

Properties sold at $8 million or above will be taxed a total of 5.7% (an 833% increase).

This tax is on the sales price, so it doesn't matter what you paid for it. For example, say you bought a multifamily building for $2M ten years ago. It's now worth $6M. If you sell after the measure takes effect, you'll now be paying an extra $276K. Yikes. Let's say it's worth $11M now. If you sold for that price, you'd pay $627K. Double yikes.

This applies to both residential and commercial real estate, but incorporated cities such as Beverly Hills and Malibu are not included. At the point of sale, the one-time tax will be deducted through escrow, regardless of whether the seller is taking a loss on the property or not.

For small landlords whose livelihoods depend on their apartment buildings, this is harsh.