Prices Creeping Up in DTLA

While DTLA was pretty stagnant price-wise since the pandemic began, the end of 2021 showed more turnover and a pickup in sales. 2022 has started off strong for DTLA, with an increase in prices, which is great for sellers. Buyers will have some competition as more people are coming out of the woodwork to buy their first home and or invest in a second property. 

A lot of buyers who had bought their main home are now looking to buy a second property to take advantage of the low interest rates--before they increase even more. With the stock market a little unstable recently, and the increased projection of renters and rental prices, real estate is looking like an excellent hedge compared to other assets. 

Fantastic Deals in DTLA Right Now

Price/sf wise, you can't get better when the surrounding areas are easily over $1000/sf. You can get built-in equity with these prices. Investors, you especially should be looking into these move-in ready places that are beckoning renters!

Elleven #614 - SOUTH PARK
1+1+1pkg - 960SF
$565K or $588/SF
Immaculate 1 bedroom condo with a huge in-unit storage room with laundry. Features east-facing views and overlooks Grand Ave and the South Park Commons Park. LEED Certified Building. 
Coldwell Banker

Flower Street Loft #202 - SOUTH PARK

1+2+2pkg - 1188SF

$639K or $537/SF

Fantastic north-facing, private unit with no neighbors in front. Has 2 parking spaces! Located just a couple blocks from Crypto.com Arena, Whole Foods, The Bloc, Hoxton, Proper, and more.

Douglas Elliman

Cornell Loft #304 - FASHION DISTRICT

1+1+1pkg - 960SF

$525K or $546/SF

Massive windows, concrete flooring and walls for sound insulation, and Mills Act status for up to 70% off property taxes! Steps to Sonoratown, Rossoblu, Cognoscenti, Whole Foods, Holy Basil, Wood Spoon, Lala's, Verve Coffee and more.

Keller Williams

Vero #412 - CITY WEST

3+3+2pkg - 1470SF

$879K or $597/SF

Immaculate and rare 3 bed 3 bath condo with a balcony! Includes 2 parking spaces and stunning amenities. Steps to Fig &7th, Target, Restaurant Row, Financial District, etc.

Wilshire Metro

DTLA - The Only Place That's a Buyer's Market

One thing the shake up of city centers did during COVID was offer unique, first-time-on-market, and sometime bargains for prime properties. A colleague of mine nabbed two properties in the West Village of NYC, and got them for about 25% below pre-COVID prices. A few lucky buyers recently got some of the best units at Eastern Columbia, some that had hit the market for the first time. 

Collectors seem to be buying up unique units that they'd never otherwise see on the market, including rare penthouses that have been significantly upgraded. One person's loss is another one's gain, I guess.

Some of the best units on the market right now:

Eastern Columbia #202
1+1+1pkg - 1150sf - Mills Act Building! - $885k

Coldwell Banker

Elleven #408

2+2+2pkg - 1650sf - Comes with a storage unit! - $1.1M

Compass

Biscuit Lofts #412

1+1+1pkg - Faces the DTLA Skyline! - $1.199M

Douglas Elliman

Eckardt #505

1+1+1pkg - Mills Acts Building! - $545k

Guadalupe Flores

Textile Lofts - #506

1+1+1pkg - 890sf - $635k - Mill Act!

Keller Williams

Luxury Condos Are Moving in DTLA

Barker Block #146 - PENDING - $1.599M

Keller Williams

 940 E. 2nd #1 - SOLD - $2.099M

Tempo

Biscuit Loft #712 - SOLD - $2.35M

Coldwell Banker

Eastern Columbia #311 - SOLD - $1.65M

Coldwell Banker

EVO #2301 - PENDING - $2.395M

Douglas Elliman

Luma #1315-1316 - SOLD - $3M

Compass

Ritz-Carlton #30A - SOLD - $1.7M

Keller Williams

Ritz-Carlton #50F - SOLD - $5M

Homesmart

The Argument Against Renting

INFLATION. PERIOD.

This is such debated topic when home prices are through the roof (no pun intended). I get the perspective of renting a place while the market cools. But my issue with this is that the market may not cool. It may go up or stay the same. Secondly, rent paid is money you'll NEVER get back. And rents are expected to increase 4-5% each year. Mortgage paid, if you hold on the property, is money you'll get back in the form of equity when you sell at the right time. And a 30 year fixed loan during inflation times? No brainer.

But did you know that homeowners have on average at least 50,000 in wealth equity in Los Angeles, while renters have about $600.00?

And here's the other kicker. Anyone who has bought a detached house in LA in the past 12 years is sitting on at least 20% equity. This is the average percentage of increased value since COVID. Crazy.

And don't forget, you don't have to be responsible for the entire mortgage. There's also the hybrid argument. You can rent a place, but still buy an investment property to rent out to someone else who will pay for half your mortgage!

REMEMBER, there's never a bad time to buy real estate, only a bad time to sell.

L.A.'s Largest Homeless Housing Building to Begin Construction on Skid Row

The Weingart Towers to begin construction and targeting a 2023 completion. https://www.weingart.org/building-the-future

It's a step in the right direction and HHH funds finally being used.

Building Highlight - Elleven Condos

Situated on the corner of Grand Ave and 11th St, the Elleven Condos was the first LEED Certified residential building in DTLA! The immaculately kept building has maintained its luxury status with a first class staff, 24/7 concierge-like front desk services, onsite manager 5 days per week, onsite engineer, and amenities such as a south-facing pool deck with hot tub, and garden deck with lush foliage, fireplace, lounge areas, Viking BBQ Grills, and fountain. 

Featured units below:

Elleven #614 - 960sf - 1+1

East facing with views of Grand Ave, South Park Commons, and tree tops. Has a built-in wall partition separating bedroom area, a huge laundry and storage room, glass shower doors. 1 Parking space with Asking $565k 

Coldwell Banker

Elleven #PH5 - 3150sf - 3+2.5

Northwest with views of the DTLA skyline. Has a spacious corner balcony for indoor/outdoor entertaining, grand open plan living areas, rare double entry doors, 2 rare storage units, 2 side by side parking spaces.

Asking $3.795M 

WEA

Big DTLA Open House Event - Sunday 9/12 from 12-4pm

30+ units will be holding open houses for the first time since COVID began. Here's your chance to tour the lofts--great inventory lately, especially in South Park. There's some really interesting ones on the market right now. 

#DTLAisOpen

Visit here to see all the open houses: www.AgentsDowntown.com

How to Win the House in a Seller's Market

I normally HATE games in real estate. It just makes everything so much more complicated in an already complicated process. But sometimes, we do have to play, especially in a very competitive market. Particularly for single family homes right now. What a crazy past 18 mos, who knew real estate would be over 25% above 2019 prices on average? Pandemic pricing. 

Right now the ONLY way to win the housing bidding wars is to:

1. Pay more than any other bidder

2. Have the best terms (short escrow, all cash if possible)

3. Negotiate once you're in escrow (Hate this one, but it does work)

4. Get it before it hits the market (I personally love these, and lots of my buyer clients have had no competition because of this. The key is to be ready to bid ON THE SPOT if you like it). 

DTLA is Bouncing Back - Recent Sales

Sales are happening, as homebuyers and investors become more confident in the market. There seems to be more owner-occupying buyers than investors for now though, no doubt due to the all the eviction moratorium activity that's in flux.

We do love owner occupied buyers in DTLA! It's these stakeholders who make the area a community, and spur on things like small businesses, artist galleries, pedestrian events, and more residents into the neighborhoods. 

Recent notable sales:

Eastern Columbia #311 - SOLD FOR $1.65M - 1740sf 

Stunning remodel of a true loft in the only Art Deco condo building in the Historic Core

Coldwell Banker

https://my.matterport.com/show/?m=dnJZvjfEBJ8

Textile Loft #906 - SOLD FOR $635K - 890sf 

Corner loft with views views views in the beloved Textile Building in the Fashion District

Coldwell Banker

https://www.themls.com/mlslistingphoto/listing/slideshow/#/21-690300

Rowan Loft #705 - SOLD FOR $835K - 1260sf 

Rare park-facing loft in the Rowan Building in the Historic Core

Compass

https://www.themls.com/mlslistingphoto/listing/slideshow/#/21-711532

Flower Street Loft #402 - SOLD FOR $1.280M - 2075sf 

Rare split level top floor loft in the heart of South Park

Compass

https://www.themls.com/mlslistingphoto/listing/slideshow/#/PW21074216MR

Elleven Loft #1101 - SOLD FOR $1.42M - 2100sf 

Rare southwest corner loft in the heart of South Park

Compass

https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-672888

Eckardt Loft #201 - SOLD FOR $563K - 960sf 

Unique T-shaped floorplan in the Fashion District

Coldwell Banker

https://www.themls.com/mlslistingphoto/listing/slideshow/#/21-745308