KPC Group Buys "Graffiti Towers" for 500M
Quick DTLA Stats
Average Sold Price/sf:
Historic Core: $616/sf
Arts District: $612/sf
Social District (Formerly "South Park"): $714/sf
Average Leased Price/sf:
Historic Core: $2.73/sf
Arts District: $3.09/sf
Social District (Formerly "South Park"): $3.29/sf
Average Days on Market for Sales:
Historic Core: 77
Arts District: 72
Social District (Formerly "South Park"): 105
Lots going on behind the scenes as the City of LA prepares for the Olympics a few years away. But will the city be ready?
That's the question on everyone's minds as renters consider buying, owners consider holding, and developers consider how to maximize profits by buying in the areas that will get the most "love" from the city.
A lot of the areas that the city will focus on where people will actually be visiting. Think of where landmarks are.
One of the biggest city goals is to expand public transportation--otherwise we'll be in traffic and Uber/Lyft hell. LA was recently awarded $900M to Expand Public Transit which is step in the right direction:
As prices continue to creep up (even if slowly), gas prices remain high, LA traffic continues to be hellish and people return to the office, there's a return back to urban centers.
Why else do the largest concentration of highest paid professionals live in cities like LA, SF, NY and DC?
While the media talks about an exodus out of urban centers, which is also happening, there's never talk about the influx and relocation of those between city centers, as well as those who are opting to reside in multiple cities. If people are leaving in droves, then why isn't there more housing inventory?
The answer, a lot of people are keeping their places in LA, and buying second homes or investment properties out of state, or keeping their high-rent LA place as the investment property and moving to another cheaper state. It makes sense, especially if you have equity in the property.
And why is DTLA a big rental investment area?
With COVID-19 getting somewhat contained, the weather as glorious as ever, and the steady flow of transplants to Downtown from places like New York, San Francisco, London and Sweden, prices are either holding steady or going up.
Just in the past 6 months, there have been high profile building projects nearing completion (Frank Gehry's Grand LA https://www.thegrandla.com/) , some completed (CMC in the Fashion District https://www.californiamarketcenter.com/) and a slew of new businesses opening, and long term leases being signed (Adidas, Forever 21), and EMCEE buying up the Museum Building, which will keep the momentum for the 8th street corridor.
The window for deals in DTLA is finally closing.
While most dense urban centers took a backseat to the suburbs during COVID, there's been signs of people moving back to city centers, particularly in DTLA. Whenever there's a shake up and prices get depressed, those with long term holding plans always come out of the woodwork and buy.
Investors, city dwellers from NYC, SF, Chicago, Seattle, and other metro areas have been moving into DTLA according to recent sales and leases from other DTLA realtors. There's been a noticeable number of people from out of state moving to DTLA due it's dense city environment and of course the weather. With outdoor dining returning, and indoor dining at minimal capacity, the ability to walk outside in winter to 70-degree sunshine, a slew of activities within 1-2 hours of anywhere (skiing, hiking, lakes, wineries, mountains, beaches), there's a lot going for DTLA.
Sales activity has increased about 8-10% this year from last, and prices have ticked up about 3% from last year. DTLA is still down overall about 7% in prices from pre-COVID times.
Leases are up now too, with more people feeling safer in general and rather than moving out of a walkable area, there are lots of people who are moving within DTLA and trying out new buildings and neighborhoods.
Entering Spring and Summer, the hope is that with more people vaccinated, the worst is behind us and can move forward to heal, resume business activities, and do our part to help keep the smallest businesses afloat.
LA real estate is very complicated. You have so many types of housing, so many different neighborhoods, so many different hubs of commerce, and so much different geography, all within 30-45 minutes of drive time. This is why there's not a blanket answer that represents exacty what went on, and what's going on in LA RE.
We know commercial real estate was killed last year. What do you expect when governments lock down offices, and companies scramble to begin the work from home phase? While most of the mid-to-small commercial buildings were destroyed, some of the high profile buildings in central locations like Culver City, DTLA, and Burbank, were snapped up for pennies by developers who have grand plans, like updated office space for hybrid office/home workers.
One of the industries that killed it in 2020 was residential real estate--mainly for single family homes. We all know the story, everyone fleeing smaller apartments and condos to buy and rent houses with yards and space to work, exercise, etc. I wonder what will happen once gyms and shops are safe to open up, will people get sick of doing everything at home and venture out? For now, we're still riding the single family home wave and prices are slated to go up another 4% from last year.
Condos took a big first hit when the pandemic started, as people left their high rises for sprawl. However, there's also been an influx of people who don't want a huge house to maintain, don't want to live in sprawling neighborhoods in the valley, who want to be closer to the city centers. These folks are buying condos, and that's helped the slower market.
Relocation companies killing it. Another sign of the times. Relocation companies are busy transplanting people to different cities, and this is propping up the rental market as people "try out" areas. So the rental market should be great in 2021, right? Depends on the stock. If you're a single family residence in a great location, the rental should fly off the shelf. If you're a condo in DTLA, you need to up the game because there's lots of competition. Updated appliances, kitchens, bathrooms, interesting amenities--all things that will help in a slower market.
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"
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
