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

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

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

DTLA Prices Starting to Bounce Back + Going Back to the Office

You always have to be cautious in unprecedented times, but there's no doubt been signs of some recovery in LA and especially DTLA. 

Single family homes are still super hot, with no signs of slowdown in 2021. Low inventory is fueling high prices because we're at that point again where owners are holding on since they can't buy any cheaper even if they sell and gain nice equity profits. Plus too many buyers and low interest rates.  https://www.redfin.com/news/housing-market-update-39-pct-homes-sold-above-list-price/

The single family/suburban boom is also now lifting prices of for DTLA again from 2020's setback. Here in DTLA, we're seeing an influx of savvy east coasters and bay area buyers who are seeing the value in prime buildings, Mills Act properties, and the growing number of companies coming back to the office in DTLA. https://www.eastbaytimes.com/2021/03/04/covid-economy-bay-area-residents-exit-region-growing-numbers-jobs-tech/

And Bitcoin may become a regular currency for paying rents! https://www.yahoo.com/entertainment/first-tesla-now-rent-california-205817713.html

Off Market Properties in DTLA

Eckardt Lofts - Fashion District

Highlights: 2 rare in-building parking spaces and fire escape balcony unique to only 6 units! City views.

Stats: 2 bedrooms, 1 bath, 960sf

Call 310-869-2655 for pricing

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Douglas Lofts - Historic Core

Highlights: Rare southeast corner with maximum amount of windows all around.

Stats: 2 bedrooms, 2 baths, 1010sf, 1 parking space

Call 310-869-2655 for pricing

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Bartlett Lofts - Historic Core

Highlights: East facing, tons of light from double hung windows

Stats: 1 bedroom, 1 bath, 650sf

Call 310-869-2655 for pricing

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Eastern Columbia Lofts - Historic Core

Highlights: East facing with views of the Orpheum

Stats: 1 bedroom, 1 bath, 1500sf

Call 310-869-2655 for pricing

Small Survey of Buyers in DTLA - Cities Still Rule

Here's a question I recently posed to several buyers, renters, and current clients of mine. "If there was NO pandemic, and money was no object and you could live in any city in the world, where would you live?" Nearly everyone named NYC, Paris and LA as their choices. This was so interesting and uplifting to hear. Because despite the media bashing cities, in a perfect world, many people want to be living in a nice pad in a big city where there are things like museums, easy transit, restaurants, bars, art galleries, independent shops, and walkability. 

While suburbs are nice, let's face it, you're still outside of the circle of these amazing amenities that cities have to offer. And while remote working is here to stay, the office space in some form will still exist as an option for many companies, and I don't know about you, but there's a growing number of people who are starting to really hate Zoom calls 6-8 hours a day. 

Interesting article about history repeating itself. Market slows, and buyers scoop up at a discount. In this case, Silverstein Properties from NYC is betting on DTLA:

http://www.silversteinproperties.com/commercial-real-estate-media/News/silverstein-properties-acquires-us-bank-tower

May 2020 Recap in the Local Real Estate Market

In May 2020, the market didn't crash like people thought it would. We're more than 2.5 months into the city lockdown, and while March was terrible for real estate in terms of activity, April was not as bad, and in some cases, just as good as pre-pandemic levels. In May, things were slightly better than April. Not saying that things are back to normal or will be anytime soon, but the housing market isn't freefalling. We are all hoping this is an indicator that the housing market will maintain value.

QUICK HOUSING STATS AND FACTS:

- Tiny price drops are happening. So tiny that it's almost negligible. It's mainly for homes that have been sitting on the market longer. The larger drop has been within the luxury market, and for the entry level market and generally high demand cities like L.A., prices are actually up around 2-3% from last year's prices.

- Huge increase in people searching online. Companies like Target have had 140% increases in online sales vs in-store sales, and Peloton has nearly doubled their revenue since people can't go to their gym. This isn't because technology suddenly got amazing--it's the lockdowns and general hassle of in-person shopping. To view homes, it can be a pain, with no open houses allowed yet, and all visitors home must wear masks and gloves and sign an advisory. Yeah, most people will want to do at least some narrowing down online first.

- People are looking for larger spaces. With office work culture changed overnight, the huge number of people now able to work from home is changing the way we live. People are wanting and needing home offices. This generally mean upsizing to a larger space or reconfiguring the current space. California has a lot of tech and office jobs that allow for home-working--this is going to affect real estate in a good way.

- People want to live with less people. The whole roommate thing is not, how do you say, ideal anymore--at least in the short term. People who can afford to go solo, will now opt to do so, even if it means paying a bit more. That means that smaller, affordable spaces will still be in demand.

- Single family home searches are up. You have homeowners wanting to upgrade, renters potentially thinking of buying, and apartment dwellers wanting a detached house. This is all contributing to increased search activity. Within this search for single family homes, searches for swimming pools, outdoor spaces, and extra rooms, has increased. 

  - Very few foreclosures, for now. The foreclosure discussion is being had right now because of the number of unemployed people. This is something to monitor because if these unemployed people don't find employment by the end of the year, then you'll likely see the fall-out of this in the form of foreclosures. However, if the unemployed start becoming employed in the next few months, we can avoid some foreclosures. The HUGE different between the foreclosures of the Recession of 2008 was because no one had any equity. The issue is, while sellers have tons of equity right now, but if they're unemployed, they're going to be forced to sell or foreclose.

- Low inventory is keeping prices afloat. The number of listings on the market is down 22% from the same time in 2019. A lot of sellers pulled their listings off the market, many decided not to list in the middle of a pandemic. Median home prices in the week ending May 16 were 3.1% higher than the same time in 2019. There is no doubt that this is due to very low inventory. Opportunity buyers (who want the low interest rates) are growing in number, but the inventory is just too low.

- Days on the market are longer. No surprise, things are sitting on the market longer, since everything, from showings to inspections to loan applications are taking longer.

- Mortgage rates are still super low.  This is keeping a chunk of buyers out there.

- Mortgage applications and rate locks are up. Buyers are taking advantage of low interest rates. Mortgage apps and rate locks are up 18% from the same time last year. 

- Los Angeles seems to be resilient for now. Some cities that are hugely affected by travel and tourism, such as Hawaii and Las Vegas, have had price impacts greater than L.A. Even NYC and Seattle have had some price hits. L.A. for now seems to be doing ok in terms of prices. Interesting piece in LA Times about how our urban sprawl in LA has likely led to fewer COVID cases. https://www.latimes.com/opinion/story/2020-04-26/coronavirus-cities-density-los-angeles-transit

- Sellers still need to up their game. Buyers want a deal, and if they see a place is not up to par aesthetically and in need of repair, then they are lowballing. Updating is key, even if it means just replacing a kitchen countertop or bathroom hardware.  If nothing else, please declutter and stage the place.

- Rent prices about 1% less than same time last year. No doubt the pandemic and unrest has caused rental properties to sit longer. And people are afraid to move. This is the immediate short term effect. However, the future is going to be more renters than buyers, which is often the result of recessions. 

- Violence and Unrest + Election Year. With every step forward, there seems to be another disruption. June 2020 is looking like a strange one, with the protests and the violence that has also surfaced in big cities. We know that cities can be resilient, and this is the hope that the current administration and city officials will do what's best to calm things down. Like I said, we need to take things week by week, as 2020 is already proving to be a crazy and unpredictable year.
 

April Real Estate Lockdown Debrief - DTLA and Surrounding areas

April 2020 is behind us. As depressing, catastrophic and upending as this is, it will pass. The world might be a little different, but it will pass. If you think about it, events like the 1918 Flu, the Great Depression, the Vietnam War, 9/11, the Great Recession...the world changed afterwards, but these events did pass. 

And because I'm in real estate 24/7, that's what I focus on when the day's activities are done, and how real estate is affected by these events. March 2020 was weird. The early part of month was okay, some fears setting in, watching Italy closely, but seemed like it wasnt a big problem yet here in the U.S., aside from toilet paper. Properties were hitting the market, selling steadily if they were nice and priced right. Then the city-mandated lockdowns hit, things started grinding to a halt, and then on April 1, 2020, the city deemed real estate a non-essential business. 

April 2020 marks a full month of lockdown in L.A. For real estate, this was not good. On April 1, there were to be no open houses and in-person showings, no inspections and appraisals. Sellers pulled their listings, buyers backed out, escrows fell out, though some managed to push through and close. Then on April 13, 2020, real estate was considered essential, but with major restrictions on showings, etc. Amidst this roller coaster, the activity in April wasn't as terrible as you'd think. Even I was surprised. May 2020 should be interesting. 

Quick stats for April 2020 - Single  Family Homes

1. The number of listings to come on the market fell about 20% from the year before. This is significant in that April-May is the BUSIEST time for real estate. However, considering a pandemic, it's amazing inventory fell only 20%.

2. Average # of new listings on the market: 358

3. Average Days on the market: 63

4. Average sold Price/SF: $691/SF

5. Average price drop from original listing price to actual sold price: 9%

Quick stats for April 2020 - Condos

1. The number of listings to come on the market fell about 40% from the year before. This is significant in that April-May is the BUSIEST time for real estate. 

2. Average # of new listings on the market: 21

3. Average Days on the market: 70

4. Average sold Price/SF: $645/SF

5. Average price drop from original listing price to actual sold price: 3%

The Holiday Buy List Should Include Property

The winter is the worst time to sell, but the best time to buy. This is when deals can be made, price drops seen and desperation is running high for sellers. 

Which brings me to talk about buying during the holidays. Two of my investment properties were bought during the holiday months. I lowballed, got the offer accepted with no counters. This is because properties aren't selling as quickly and sellers just want to get out. So, buyers out there, remember that if you're thinking of waiting to buy in May or June of next year, then you will likely pay a bit more, or end up in a bidding war with other buyers. Of course interest rates could fluctuate, and they will, but the forecast is that they will be roughly the same as this year, or a tad higher.

Plateau of Prices Continues

Prices began to plateau in DTLA (and most of LA in general) this year. But this isn't too surprising--prices have been steadily going up every year since the crash, and it was due to level off at some point. That point is now.

Translation: Great time for buyers to get in while prices are softening and interest rates are still very low.

Savvy sellers are still getting top dollar though, if the home is remodeled. Nicely updated properties are still going over asking and with multiple offers. The fact is, inventory is low, but even lower for good homes.

Good updates for condos and loft spaces & resale value:
1. Modern kitchen with no moldings and fussy details
2. Do with less upper cabinets and instead opt for a kitchen island with storage to make up for it
3. Hardwood or Concrete floors all the way. No one wants carpet these days!
4. Do not paint crazy accent wall colors. Use a muted or neutra like gray or taupe for accent walls.
5. Add window shades but not curtains
6. Go easy on the Carrara Marble--the look can get played out very fast if you have too much of it
7. When in doubt, paint the entire interior white and use pops of art and color to add to walls.
8. Add plants--always trending are Fiddle Leafs, as well as Monsteras, Draconias and Money Plants
9. Dark kitchens are making a comeback--but only if done well with the right blacks and grays and dark blues. Otherwise, keep it light.
10. Plywood in lofts is getting played out. Unless it's in closet built-ins, don't use it in kitchens and bathrooms.

Why Downtown is So Exciting

For those of us who have properties in the area, it's been exciting. Growth has been steady year over year since the crash. Some of my clients are at 100k up on their investment in just 12-18 mos. Most are about 200k up on their investment. And few of them are more than 500k up on their investments in just 5 years. The point is, everyone is up on their investment. (Know which buildings to buy in, please do the homework or use someone who has the info!)

For those who are pioneers, DTLA is a blank slate. So many pioneers creating some very interesting spaces, shops, and experiences. And it's all in one dense area.

And most important of all, there's still a lot more to go. You wouldn't believe the plans in place for neighborhoods like Bunker Hill, or the areas just south of South Park. And the Produce District. And the Industrial District just north of Chinatown.

While some are saying it's too late to get in, I say we're only 10% there. That's exciting.

What $1Million Buys you in DTLA

For about $1 Million:

Photo: TEN50 Trumark; U-Click

Building: TEN50 

Neighborhood: South Park

Floor Level of Unit: 8th

SF: 1140, 2+2 with 2 parking spaces

PRICE: 980k

Loftway

Building: EVO

Neighborhood: South Park

Floor Level of Unit: 21st

SF: 1170, 2+2 with 2 parking spaces

PRICE: 995k

The Agency

Building: Metropolis

Neighborhood: South Park

Floor Level of Unit: 22nd

SF: 843, 1+2 with 1 parking spaces

PRICE: 985k