UPDATE: 40% RESERVED - Getting In Early on a New Development - Metropolis

Look around downtown and see if you can count the number of new construction sites. There's a lot. Among all the development, there are about 5000 residential units to come on the market in the next 2-5 years. Among them, only a fraction (not even 10%!) will be condos/lofts that you can purchase. The rest are slated to be rentals. Because of this low inventory of condo housing, developments such as the new phase of Barker Block and Beacon Lofts sold out within a couple of months. And despite the steady increase in value of condos in downtown since the crash, many homeowners aren't selling because they see this as just the beginning of where DTLA should be.

This is why it's so important to get in early on new developments. You not only have first dibs on the choice units in a building, but can often have the pick of the litter on upgrades, parking spaces and even get financing incentives. The latest project underway is Metropolis, which is a luxury highrise condo/hotel/retail complex that will change the skyline of downtown. Units will range from 510sf studios to 2600sf split level Penthouses. Pricing TBD. Early registration is key, so email me if you'd like to get on the list for advance information. Some renderings below, and the site where grading is well in the works.

DTLA EVENT ALERT - Grand Central Market + KCRW "Good Food's Night Out"

If you haven't been to GCM lately, you REALLY need to stop by. In the past 6 months the beloved market has experienced a rush of new eateries, from Eggslut to McConnells Ice Cream, and now you can partake in a tasting event this Friday, August 22 from 7-10pm. KCRW's Evan Kleinman will be hosting and you can sample select special goodies from Wexler's Deli, Olio Wood Fire Pizzeria, Sticky Rice Thai Food, Horse Thief BBQ, DTLA Cheese and Valerie. Of course you'll have all the other food stalls to wander to as well. RSVP on Facebook here!

SOLD AT ASKING - Art Deco Corner Unit for Sale - Eastern Columbia #404

Newly available is spacious 1610sf Southeast facing unit in the Art Deco Eastern Columbia building, developed by The Kor Group. The unit features plenty of huge windows, polished concrete floors and views of Broadway. Comes with 1 assigned 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. Priced to sell at an amazing price of $795k for 1610sf of space. This building is also Mills Act approved.

 Courtesy of Sharon Kobold, Weichert Realtors

SOLD - Huge Live/Work Corner Warehouse Loft - Barker Block #256

True live/work corner loft in the Barker Block building with 1660sf of living space. 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 oversized loft features original wood beams, beautiful hardwood floors, and fantastic Southwest views, 2 bathrooms and 2 assigned parking spaces. Listed at $968k. 

SOLD - Live/Work Pied a Terre in Arts District - Barker Block #554

True live/work loft for lease in the Barker Block building with 740sf of living space. 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 open plan loft features original wood beams, beautiful hardwood floors, and easterly views for miles. Includes one assigned parking space. Listed at $554k. 

Where Are All the Artists Moving To?

This is a question that has been posed to me by several of my long-term investor clients. The once affordable Arts District now has properties that often sell for close to $1MM. You can hardly find a 1-bedroom 850sf studio for under $500k. Aside from perhaps the 9th & Broadway intersection, the Arts District has seen some of the quickest and most significant changes since the revitalization of DTLA as a whole. So where are the resident artists who can no longer afford the huge loft spaces moving to? Many are moving to Lincoln Heights, where you can still get random warehouse spaces for a fraction of what you'd pay just a few miles south. The Brewery, the largest arts colony in the world, is another exclusive compound for many artists. Another area that is being eyed is the pocket between the Arts District and the City of Vernon, where it's mostly warehouse structures, but no-man's land after 6pm. It's an interesting time to be witnessing the spread of what has begun in DTLA, and realizing that soon DTLA may become the center of it all, as it once was back in the day.

SOLD - 1300 sf Live Work Warehouse Loft - Barker Block #341

True live/work loft for lease in the Barker Block building with 1300sf of living space. 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 oversized loft features original wood beams, beautiful hardwood floors, and fantastic westward views of the downtown skyline. Includes one assigned parking space. Listed at $668k.

SOLD - Industrial Penthouse Loft in the Heart of South Park - Flower Street Lofts #408

True live/work loft for lease in the legendary Flower Street Lofts building. Once a UPS shipping hub, the building boasts lush foliage and shaded areas that make it feel like you're in an oasis in the middle of the city. This stunning penthouse features skyline views, extra tall 14" ceilings and an open and airy layout with the bedroom in a separate nook. The spans almost 1400sf and comes with 2 covered  and assigned side-by-side parking spaces. Walk to Restaurant Row, the new Whole Foods, Ralphs, Staples Center, Historic Core, Central Library and more. Listed at $625k. 

 Courtesy of Anh Tran, Keller Williams Larchmont

Are There Any More DTLA Real Estate Deals Left?

Yes, there are, but the deals are of a different type. When the DTLA market was just starting to pick up again in late 2012, buyers were able to choose from not only standard sales, but short sales and foreclosures. In 2013, the short sales had been mostly snatched up--many by cash buyers and investors. But not all deals are in the form of short sales and foreclosures. These days, the deals to be had are the pocket listings, stale listings and buildings with litigation.

POCKET LISTINGS, often called "secret listings" and "private listings," are those that are not published on the MLS or advertised. Sellers who don't want the world to know they are selling or want their name to be kept private until a sale records is often the reason for these listings. These properties are sold by agents who have a private list of ready and willing buyers, or who have a network of other agents who have ready and willing buyers. The general public will never even know these listings exist. The great thing about pocket listings is that there's usually one bidder, so the chances of your offer getting accepted (or at least countered) is much greater, and without the price inflation which is often the result of multiple offers. More than half of my buyer clients have bought pocket listings, avoiding the multiple offer mess that causes long agonizing waits and oftentimes drives up prices.

STALE LISTINGS are those that have been sitting on the market for more than 90 days. While most DTLA real estate moves quickly, those that have sat for a while because of bad timing, a buyer backing out, or litigation on the building, can be deals in disguise. One of my clients just bought an amazing loft at well under the market rates because the loft had fallen out of escrow due to a lender that couldn't perform. The loft sat for a few more weeks, making it look even less attractive. Upon hearing that this ginormous loft was back on the market, the buyer swooped in and bid 49k below asking and got an accepted offer because the seller was desperate to get into another escrow.

While LITIGATION isn't ideal, the reality is that a LOT of buildings are involved in some form of litigation, oftentimes with the developer. This means that most lenders can't offer a loan for that building due to risk and this tends to drive prices down in a building. While a lawsuit scares most people and lenders away, buyers who can find a lender are getting accepted offers at below market prices. The catch is that you often have to put a higher downpayment in order to get viable financing on the property. The thing is, lawsuits eventually go away, but a good investment can be forever.

Send an email to info@sartparker.com if you'd like to be on the list to receive pocket listings as we get them. 

SOLD - Spacious Industrial Loft for Sale - Barker Block #108

True live/work loft for lease 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 stunning oversized loft features more than 2100sf of space on two levels, immaculate polished concrete floors, and 2 covered  and assigned side-by-side parking spaces. Listed at $1,050,000.