I conducted an informal poll of downtown residents (i.e. friends and clients), asking them what they'd like to see coming to the neighborhood. Here are the majority of responses:
1. Trader Joes (already happening, FYI)
2. Whole Foods (already happening, FYI)
3. More parks and/or parklets
4. More breakfast options
5. More housing and facilities for Skid Row homeless
6. Independent movie theater (already happening--Alamo Drafthouse)
7. More taxis with taxi ramps
8. Schools
9. Post offices with weekend opening hours
10. More ATMs
Showing posts with label gentrification. Show all posts
Showing posts with label gentrification. Show all posts
Monday, November 10, 2014
Friday, October 31, 2014
Why Prices Are Keeping Steady in Downtown
For those of you who've been keeping up with the happenings in downtown, you'll know that the market has been hot. While some units are selling about 1-3% below asking, many are selling for at or over asking. This is because the development in downtown has been nonstop since the crash in 2008. Savvy investors are transforming the neighborhood and residents and visitors are coming by the droves. This is just a glimpse of what's to come to DTLA in the next couple of years, and this isn't including all of the wonderful new eateries, cafes and boutiques that are opening literally every week:
1. Whole Foods
2. Complete transformation of The Bloc shopping center
3. Empire Hotel
4. Case Hotel
5. Trader Joes
6. Broad Museum
7. One Santa Fe Arts Theater and Shopping Complex
8. 1st & Broadway Park
9. Wilshire Grand
10. Metropolis
11. Alamo Draft House Theater
12. Freehand Hotel
1. Whole Foods
2. Complete transformation of The Bloc shopping center
3. Empire Hotel
4. Case Hotel
5. Trader Joes
6. Broad Museum
7. One Santa Fe Arts Theater and Shopping Complex
8. 1st & Broadway Park
9. Wilshire Grand
10. Metropolis
11. Alamo Draft House Theater
12. Freehand Hotel
Sunday, August 31, 2014
10 Things About the Current State of Real Estate in DTLA
While this post is dedicated to DTLA, much of it applies to the overall Los Angeles housing market. 10 things to note:
1. Hard to believe that in 1984, average 30-year fixed mortgage rates were over 14%. Rates have since steadily declined, making it much cheaper to borrow money. While 2012 had some real historic lows (3.35!), 2014 is proving to still be super low at about 4.2% YTD.
2. For some buildings in DTLA, the prices have now reached above the height of 2007. Many of those who were under water are now able to sell, but these homeowners are optimistic and are waiting for prices to increase further before selling. With all the new walkable development happening, many homeowners who once had thoughts of selling are now asking themselves, why leave?
3. According to The MLS, the average rent in DTLA for a 1 bedroom was about $2100 in 2009. Average rent price in DTLA in 2014 was $2300 for a 1 bedroom. Higher than the average rent increases plus no rent control is why those who want to have cashflow-positive investments (including me) are buying in DTLA.
4.According to Downtown News, more than 5000 residential units are being built in DTLA in the next 5 years. Of them, less than 10% will be condos. The rest will be rentals. You can bet the demand for condos will continue to be very high in the coming years. And this means higher prices for condos.
5. According to the DCBID, currently there are more than 52,000 residents in DTLA, up 15% from 2011.
6. According to the DCBID, the average income of a DTLA household is $98,700/year. And you wonder why properties are getting really expensive--people with high incomes are buying and renting here.
7. There are more than 20 coffee shops now within a 1-mile radius from the center of DTLA. And most have opened doors in the past 2 years. We all know what that means.
8. The average price per sf in downtown in 2011 was approximately $347/sf. In 2014, it's $546/sf.
9. DTLA has the largest network of the public transportation in all of LA, thanks to the Union Station. The regional connector and the Streetcar will further enhance the accessibility and revitalization.
10. Clean tech incubator labs will soon be inhabiting a reused warehouse in the Arts District. The hope is that DTLA will be the future center of clean technology.
1. Hard to believe that in 1984, average 30-year fixed mortgage rates were over 14%. Rates have since steadily declined, making it much cheaper to borrow money. While 2012 had some real historic lows (3.35!), 2014 is proving to still be super low at about 4.2% YTD.
2. For some buildings in DTLA, the prices have now reached above the height of 2007. Many of those who were under water are now able to sell, but these homeowners are optimistic and are waiting for prices to increase further before selling. With all the new walkable development happening, many homeowners who once had thoughts of selling are now asking themselves, why leave?
3. According to The MLS, the average rent in DTLA for a 1 bedroom was about $2100 in 2009. Average rent price in DTLA in 2014 was $2300 for a 1 bedroom. Higher than the average rent increases plus no rent control is why those who want to have cashflow-positive investments (including me) are buying in DTLA.
4.According to Downtown News, more than 5000 residential units are being built in DTLA in the next 5 years. Of them, less than 10% will be condos. The rest will be rentals. You can bet the demand for condos will continue to be very high in the coming years. And this means higher prices for condos.
5. According to the DCBID, currently there are more than 52,000 residents in DTLA, up 15% from 2011.
6. According to the DCBID, the average income of a DTLA household is $98,700/year. And you wonder why properties are getting really expensive--people with high incomes are buying and renting here.
7. There are more than 20 coffee shops now within a 1-mile radius from the center of DTLA. And most have opened doors in the past 2 years. We all know what that means.
8. The average price per sf in downtown in 2011 was approximately $347/sf. In 2014, it's $546/sf.
9. DTLA has the largest network of the public transportation in all of LA, thanks to the Union Station. The regional connector and the Streetcar will further enhance the accessibility and revitalization.
10. Clean tech incubator labs will soon be inhabiting a reused warehouse in the Arts District. The hope is that DTLA will be the future center of clean technology.
Monday, June 16, 2014
DTLA Real Estate Climate as of June 2014
Lots of buyers who've decided they want to buy in DTLA are asking me key questions before they take the leap. As a homeowner and investor in downtown myself, here are my answers to these questions:
"Am I buying at the height?"
Understandable question since prices have been steadily climbing to near-2007-peak prices--and in some super-desirable buildings (think Eastern Columbia, Biscuit Company Lofts, Barker Block)--beyond peak prices. I always tell my clients the same thing: "This isn't the height." What's so sublimely different now than what happened back in the crash of 2009 is the inventory is super low in DTLA. Supply and demand always affect prices, and there is a great demand for condo and loft housing right now yet the pickings are slim. Buildings that were once slated to be condos (e.g. The Chapman, The Roosevelt, Apex, etc.) became rental-only buildings because of the crash--and the owners of these buildings are happy to just rake in the continuously increasing rents. Most of the new developments such as One Santa Fe in the Arts District, 8th & Hope near South Park, and Ava in Little Tokyo for example, are all rentals. It's no wonder the newest phase of Barker Block is nearly sold out with only 7 units left as of today.
"Is there a bubble that will burst?"
Two reasons the climate is different from that of the 2007-2009. First, the loose lending practices that dominated the height of the market are now gone. It's been a lot more difficult for buyers to get qualified for a loan and many lenders are requiring a larger down, the upside being that this has helped buyers have instant equity as soon as they've purchased. While this means some buyers who have little savings for a downpayment or bad credit might experience hurdle and blocks, those who can qualify for a loan will be buying what they can actually afford, and this should help prevent short sales and foreclosures. Secondly, the the investment happening in DTLA right now is from businesses, NOT just homebuyers and residential developers. Back in the bubble days, a bunch of buyers/investors scrambled to buy a condo due to speculation, but business investment was pretty much non-existent (Except for good old Ralphs and Cedd Moses' bars such as Seven Grand and The Golden Gopher). Now, there are more developments and new businesses that have and will create jobs, such as The Bloc, Clean Technology Incubator, Gensler Architects, One Santa Fe, The Ace Hotel, The JW Marriott, The Residence Inn, the upcoming Case Hotel, Arts District "Mall", Urban Radish, 7th & Fig. And this is just the tip of the iceberg.
"Is all this building around DTLA going to affect my purchase?"
Depends on what you're buying to do. If you're planning on living in your home, then you've got it made. Enjoy the rise in values as DTLA continues to revitalize. If you're buying to invest and rent out, this gets more tricky because in the near future, beginning this Fall, there will be an influx of new rental-only buildings. (Think Ava Little Tokyo, Olive & 9th, 8the & Hope, Avant, One Santa Fe). You'll have competition with these new developments that will attract tenants who want the newest place to live. That said, some condo buildings will always be in demand by renters because of their uniqueness and location, such as The Residences at The Ritz Carlton, Barker Block, Molino Lofts, Biscuit Lofts, Eastern Columbia, The Rowan, to name a few.
"Am I buying at the height?"
Understandable question since prices have been steadily climbing to near-2007-peak prices--and in some super-desirable buildings (think Eastern Columbia, Biscuit Company Lofts, Barker Block)--beyond peak prices. I always tell my clients the same thing: "This isn't the height." What's so sublimely different now than what happened back in the crash of 2009 is the inventory is super low in DTLA. Supply and demand always affect prices, and there is a great demand for condo and loft housing right now yet the pickings are slim. Buildings that were once slated to be condos (e.g. The Chapman, The Roosevelt, Apex, etc.) became rental-only buildings because of the crash--and the owners of these buildings are happy to just rake in the continuously increasing rents. Most of the new developments such as One Santa Fe in the Arts District, 8th & Hope near South Park, and Ava in Little Tokyo for example, are all rentals. It's no wonder the newest phase of Barker Block is nearly sold out with only 7 units left as of today.
"Is there a bubble that will burst?"
Two reasons the climate is different from that of the 2007-2009. First, the loose lending practices that dominated the height of the market are now gone. It's been a lot more difficult for buyers to get qualified for a loan and many lenders are requiring a larger down, the upside being that this has helped buyers have instant equity as soon as they've purchased. While this means some buyers who have little savings for a downpayment or bad credit might experience hurdle and blocks, those who can qualify for a loan will be buying what they can actually afford, and this should help prevent short sales and foreclosures. Secondly, the the investment happening in DTLA right now is from businesses, NOT just homebuyers and residential developers. Back in the bubble days, a bunch of buyers/investors scrambled to buy a condo due to speculation, but business investment was pretty much non-existent (Except for good old Ralphs and Cedd Moses' bars such as Seven Grand and The Golden Gopher). Now, there are more developments and new businesses that have and will create jobs, such as The Bloc, Clean Technology Incubator, Gensler Architects, One Santa Fe, The Ace Hotel, The JW Marriott, The Residence Inn, the upcoming Case Hotel, Arts District "Mall", Urban Radish, 7th & Fig. And this is just the tip of the iceberg.
"Is all this building around DTLA going to affect my purchase?"
Depends on what you're buying to do. If you're planning on living in your home, then you've got it made. Enjoy the rise in values as DTLA continues to revitalize. If you're buying to invest and rent out, this gets more tricky because in the near future, beginning this Fall, there will be an influx of new rental-only buildings. (Think Ava Little Tokyo, Olive & 9th, 8the & Hope, Avant, One Santa Fe). You'll have competition with these new developments that will attract tenants who want the newest place to live. That said, some condo buildings will always be in demand by renters because of their uniqueness and location, such as The Residences at The Ritz Carlton, Barker Block, Molino Lofts, Biscuit Lofts, Eastern Columbia, The Rowan, to name a few.
Wednesday, June 4, 2014
Quick and Dirty Rundown of Downtown Retail & Restaurants
Lots of stuff going on in DTLA--but that's pretty much the same story since, what, 2006? Before the crash, there was activity. After the crash, the activity slowed down, but it never stopped. DTLA believers like Adam Fleischman (Umami and Choco Chicken), Cedd Moses (Coles, Golden Gopher, Clifton's), the late Alex Calderwood (Rudy's Barbershop, Ace Hotel), and Tyler Wells (soon to be "merged" Handsome Coffee) forged on. The big difference between the pre-crash era and now? In addition to places to live, more businesses have been opening in the area than ever before, and businesses are the key to attracting jobs, visitors, and residents. DTLA is finally in a healthy place. Just in the past few months we've welcomed Eighty Two Barcade, Oak, Aesop, Stumptown Coffee, Tanner Goods, H&M, Zara, Sea Salt, Warby Parker, Alma, and Blacktop Coffee. Watch out for: Whole Foods.
Tuesday, December 3, 2013
Grand Opening Alert *Dec 19* - Urban Outfitters on Broadway
Old becomes new again as the beloved Rialto Theater on Broadway in the Historic Core neighborhood is restored. Urban Outfitters will be housed in the theater, and as an homage to Los Angeles, the store space will reportedly have a screening wall of old movies and the like. Parking is scarce in the area, but plenty of places to park your bike in front of the theater, so ride on down!
Tuesday, November 12, 2013
Be Among the First to Stay at the Ace Hotel
It's technically still part of the historic core, but if you want to get persnickety about it, Broadway is actually the old Theater District. And the Ace Hotel is coming along beautifully on the corner of 9th and Broadway, just south of the glorious Eastern Columbia residences. Set to open in the early part of 2014, the hotel has already started taking early bookings. Check out their official site here.
Saturday, September 21, 2013
Another Umami Hits the Arts District
Arguably one of the most tasty burgers in town, another Umami hits downtown, this time in the Arts District. Located around the corner from one of my other faves, The Pie Hole, this Umami outpost is cozier than the Umamicatessen on Broadway, but just as tasty.
Sunday, September 15, 2013
From Portland, With Love
Popular coffee house from Portland opens its first outpost in Los Angeles. Welcome Stumptown Coffee to the burgeoning Arts District - Sud. Grab a delicious brew when you're in the neighborhood, or perhaps a quick pick-me-up before dinner at Bestia, which is just around the corner.
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