Judson apartments on Broadway Sells for 14M

 Judson Building on Broadway Sells for 14M

Kidder Mathews Arranges $14.75M Sale of 60-Unit Historic Multifamily Property in Downtown LA | Kidder Mathews

Buyer for Graffiti Towers Finally Found

 KPC Group Buys "Graffiti Towers" for 500M

The eyesore on Figueroa and 11th Streets, formerly known as Oceanwide Plaza, is finally being sold to the KPC Group who will complete the project which is only about 60% completed, with the hotel portion being completed first in time for the 2028 Olympics.

Why We Love LIVE/WORK Properties

They are few and far between, but live/work properties are wonderful with virtually only upsides. 

- You can legally operate a business out of them, with some restrictions of course (can't be a restaurant if it's not zoned for a restaurant).

- Tax benefits for sole proprietors, LLCs, etc (Ask your CPA about it!)

- Often converted or adapted re-use projects, making them more sustainable than other properties/buildings

- As an owner, you have the choice to live in, or work in, or BOTH in the property (some examples include graphic designers, attorneys, accountants, editors, fashion designers, artists, company showrooms, filming locations)

- As a landlord, you have a larger audience pool of renters, from people who want to live and/or work or both in the property

- As a seller, you can market to both residential and commercial buyers

- Unique communities in which there is an intersection of lifestyle and commerce in one place

- Oftentimes, values are higher in some of these live/work buildings due to their hybrid nature

- Ideal for hybrid work-from-home users

And while there are not too many of them, some areas have a higher concentration of them. 

- DTLA has a large concentration of over 20 live/work zoned buildings. 

- Hollywood has live/work buildings dotted around the neighborhood

- Culver City 

- Pasadena 

Redfin's Predictions for 2026

 2026 Market Expectations According to Redfin

-Interest rates expected to stay in low 6% range, which won't shock buyers.

-Prices to tick up only 1% compared to 2025 due to job and generally economic insecurities. 

-There will be more volume activity in 2026 mainly due to pent up sellers unleashing inventory on the market to upgrade, relocate, free up cash. 

-Those who started with 7-8% mortgages will refinance.

-Fire victims who were in temporary housing and had insurance payouts will begin to look for housing or rent in areas away from fire hazard zones, creating local migration within LA.

-Rental market will be stronger than 2025 as housing affordability remains low, and the demand for rentals, especially roommate situations, will rise. 

LA Convention Center Expansion Approved + Erewhon Coming to Hill & Olympic site

City Approves LA Convention Center Expansion

Work to start on modernization and expansion the the Convention Center to begin this month. https://www.ladowntownnews.com/news/convention-center-project-approved-mayor-oks-modernization-and-expansion-efforts-to-revitalize-downtown/article_6044c015-a759-4139-8447-f13f8984250e.html

 

Erewhon Officially Coming to Hill & Olympic

Back in 2017, Erewhon cancelled plans to come to a DTLA location on 9th and Hill. The high end grocer recently bought a distressed parking structure on Hill and Olympic and officially announced a new shop opening in 2027. While it's a while away, the anticipation of the "Erewhon Effect" in real estate is keeping hopes up. https://erewhon.com/locations We're so glad the company sees potential with the over 90K residents in the area, one of the most dense areas of LA. 

Housing Sluggish, But Not in Freefall

It's been a rough ride in housing, especially compared to the years before when multiple offers were the norm. But we're no longer in a pandemic, we're still in recovery from the fall-out. 

On top of that, interest rates have remained high and job security is at an all-time low since the dot com bubble days. 

Housing prices have dipped about 0.4% on average since 2024 and is expected to stay flat until the middle of 2026, when further interest rate drops should help pick things up.

Upcoming Developments in DTLA

Upcoming Developments in DTLA

Arts District

670 Mesquit

900 apartments + retail/office

Social District/South Park

940 S. Hill St

Erewhon owners purchase building 

Financial District - The Bloc

700 S. Flower St

Founders of Equinox to open Ballers LA members-only pickleball social club in former Macys space

Chinatown - Historic State Park

1251 N. Spring - 986 apartments + retail/office

Produce District - The Row

777 S. Alameda

1000 apartments proposed at The Row

Bunker Hill

100 S. Grand

University of Michigan Business School campus

We're In the Most Dysfunctional Market

Seriously, so many people are shaking their heads at this market. Sellers are boggled that well-priced homes are not flying off the shelves (they're selling, but surprisingly slower than expected), Buyers are flummoxed that prices aren't crashing, interest rates are still nearly triple the past 5-year low, and even while inventory is rising, prices aren't plummeting. 

That's because when you think about it, nothing has really changed in the past 24 months. Interest rates are still high, most Sellers are NOT unleashing since they are happy in their post-COVID homes and even happier with the 2.8% mortgage rate, and inventory is still historically very low. We've been in a weird market where neither side needs to or wants to budge. 

But one thing is for sure, right now, Buyers have more of an upper hand than Sellers because they can offer less, or just walk away. Sellers are at the mercy of buyers (unless it's a hot property) and are often willing to negotiate. A recent buyer I represented got their escrow fees paid by the Seller--that was about 10K that the Seller just agreed to pay to get the deal done. Not possible 3 years ago.

And right now, Landlords are gaining the upper hand too. Rents are climbing, the cost of living is climbing, and renters either have to downgrade their place to match the rents they want or pay the annual rent increases where they currently are. 

Renters always forget that they don't have a 30-year fixed rent, they have a 12-month fixed rent and that's pretty destabilizing in my opinion. This is another reason why I'm seeing more couples and roommates shacking up to offset costs. Why pay $2500/mo each for a mediocre apartment when you can pay $2000/mo each for a much nicer $4000/mo 2 bedroom in a nicer building and possibly better area?

So what to do? If you're a Seller, price it right and sell so you can use your funds to do what you want to do. Otherwise, hold until the market goes up, because it always does. If you're a Buyer, buy now while things are negotiable. Remember, the mortgage rates can drop and you can always refinance, but the price is the price. Landlords, hold on to those precious rentals, especially in prime buildings and ones in which you have good Renters. Renters, you should consider buying if you're sick of rents increasing each year, and start gaining some equity which equals wealth.

Insurance Premiums Rising in States Like CA, FL, TX

 Conditions That Will Increase Insurance Premiums

-Aging Homes (Anything prior to 1995 will have a premium)

-Overgrown Vegetation

-Aging Roofing

-Wood structures such as sheds, balconies, stairs

-States like Texas, California, Florida will have the highest increasing premiums due to natural disasters

Conditions That Will Decrease Insurance Premiums

-Safety Upgrades such as sprinklers, fire code updates, smoke and carbon monoxide detectors

-Homes made of Concrete and Steel

-Keep receipts of any upgrades, modernizations, code updates to submit to insurers

-New construction will get best rates

Greatest Rent Increases (5-6%) Are in Areas Bordering Fires

Areas like Santa Monica and Pasadena has seen the biggest rent growths as fire victims move around within these neighborhoods on 12-month leases or shorter term leases. Pasadena rents have risen about 6.2% from last year, and Santa Monica rents have risen about 5.1% from last year. All other parts of LA has risen on average of 1.3% since last year.