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 

Interesting Properties for Sale in DTLA Right Now

257 S. Spring #4G

2 bed, 2 bath 1 underground parking space, corner unit

Mills Act Building

Walk to Grand Central Market, The Broad, Little Tokyo, Arts District, Gallery Row, Spring Arcade

Coldwell Banker - Call for pricing (310-869-2655)

1100 Wilshire #2202

2 bed, 2 bath 2 parking spaces, corner unit with 270 degree views

Down the street from Fig & 7th, Staples Center, Restaurant Row

$1.168M

Courtesy of KW Executive - Silvia Cheung

416 S. Spring #810

1 bed, 1 bath 1 parking space, charming former residence of Charlie Chaplin

Mills Act Building

Walk to Grand Central Market, The Broad, Little Tokyo, Arts District, Gallery Row, Spring Arcade

$519K

Figure8Realty - Nicole Kilmer

530 Molino #211

1 bed, 1 bath 2 parking spaces, massive loft over 3000sf

Walk to Soho House, Arts District Shops, Bestia, Bavel, Girl & Goat

$2.1M

Iota Realty - Jonathan Yuen

738 S. Los Angeles St #203

2 bed, 1 bath 1 parking space, massive private patio

Mills Act Building

Walk to Proper and Ace Hotels, Fashion District shops, Flower Market, Whole Foods

$545K

Roxana Godinez, Loftway

1130 S. Flower #102

2 bed, 2 bath 2 parking spaces, Massive patio and split level orientation

Walk to Staples Center, The Bloc, Fashion District, Whole Foods, Financial District

$998K

Lotus - Chi Lieu

Flipping in DTLA

I've been getting requests from investors about flipping in downtown. Flipping is not as common in condos. It's just such a hassle to buy a condo, get board approvals, deal with building restrictions, and, with the way prices have been (especially in DTLA), sell for a modest profit at best.

But it does happen, and sometimes, it can be very easy. The best type of condo is often one that has been banged up a bit due to years of tenants living there. Appliances are in bad shape, cabinetry needs updating, flooring needs an overhaul, etc.

Typically, a condo that's been overhauled can fetch about twice the amount of remodel money put into it. For instance, a condo with a market price of $800k with a remodel that cost $75k can end up being worth $950k to the public. Not a bad return on your money.

What are the typical remodels that generate the most ROI?

1. Kitchen (Appliances help, but more than that, modern cabinetry and ventilation.)

2. Bathroom (Just changing out the sink makes a huge difference. Then of course, tiles are a big deal right now, and you want to err on the light color side)

3. Flooring (Worn, stained, dated flooring needs to be replaced asap! It's the biggest turn off for buyers)

4. Storage (Add an extra closet, pantry space, etc. So many options these days. The biggest cheat is a floating wardrobe that is fixed to the wall.)

5. Lighting (Please add nice, modern lighting to dull, dark spaces. Even $2k worth of electrical work to add more ceiling lights will hugely add to value)

6. Paint (Please choose flat white for your walls if in doubt. Do not go crazy with colors unless you have a designer who can put the room "together" for you. I know wallpaper is hot right now but honestly, it has to be done right)

DTLA Pocket Rental Alert: Gorgeous Loft w/ Concrete Floors at Eastern Columbia

Gorgeous 900sf loft for lease at the famed Eastern Columbia building on 9th & Broadway. Beautifully maintained with stainless steel appliances and a Kelly Wearstler designed bathroom. Open plan layout with views to the south. Concrete Floors, 11 foot ceilings, and comes with 1 parking space. Within 3 blocks to Ace Hotel, Whole Foods, Terroni, Peking Tavern, Pattern Bar, Freehand, The Exchange, Cos, CVS, Loit, Verve, IL Cafe, Om Nom, Ralphs, Wood Spoon, New Moon, Tuck, Wild Living and more.

Asking $2800/mo. Available Oct 1, 2017. Call for a details. 310-869-2655

The Upside of "Older" Properties in DTLA

One thing about those 10-year old condos and the 80-year old loft conversions that were done in the mid 2000s is that the square footage of what was selling was a lot larger than the average brand new home today. Nevermind that the price/sf has gone up all over the city. It's that now, 900sf is the size of a 2-bedroom and 1-bedrooms are more like 650sf.

However, back in 2004-2006 when so many lofts and condos were built/converted, the average 1 bedroom was about 800sf. What this means is that if you have a large 1 bedroom, you can think of converting these into 2 bedrooms later on, or marketing them as potential 2-bedrooms. Permits needed, of course.

The moral of the story? Buy a condo or loft that was built 10 years ago if size matters. 

Downtown Area Highlight: Arts District

Downtown really is its own world. While prices have gone up around the country in most cities (5.1% from 2015!), DTLA is in my opinion one of the most exciting and resilient places. Even after the crash of 2008, prices have been steadily rebounding and are now well past the 2007 height. More residents are living in the area. New businesses have arrived. And each week seems to bring about another exciting development.

One of the most thriving areas is the Arts District. I highlight the area because it has seen some serious value gains because of the exciting development and the lack of inventory. There are only FIVE loft/condo buildings in the Arts District, which is keeping demand high. In addition, some of the most exciting developments and destinations are happening in the area: SOHO House, Hauser Wirth Schimmel, At Mateo, Oficine  Brera, Bestia, The Row DTLA, and The Garey Lofts, Church & State, Shinola, Grow, Everson Royce Bar, La Kretz Innovator.

Sneak Peek of Upcoming South Park Condo - TEN50

First time since the Ritz Carlton was completed in 2012, new construction condos will be available for sale in downtown Los Angeles. Developed by Trumark Urban and designed by TEN50 is located on Grand and 11th, in the prime area of South Park, just a few blocks from the Historic Core and the Fashion District. Target move-in is November 2015. Contact me to preview the floorplans, amenities and finishes.

Just some of the highlights:
- Infinity edge pool
- Outdoor yoga deck
- Theater/Media room
- Corner Penthouse units
- Boutique style building
- Bertazzoni induction range, Bosch ovens, Liebherr refrigerators
- 24/hour reception
- Parking and storage

 

(Rendering from Photographer of TEN50)

(Rendering from Photographer of TEN50)

(Rendering from Photographer of TEN50)

Great DTLA Historic Lofts on the Market Now - All with Mills Act Designations

What's so great about having property in a Mills Act building? Savings on property taxes. As you know, property taxes in Los Angeles are high. The Mills Act designation helps offset some of this tax burden. This could end up saving you thousands per year in taxes. The Mills Act only applies to select historic buildings.

Eckardt Building

Former warehouse in the Fashion District

Penthouse #1201

1760sf, 3 bed, 2 bath

Private patio, split level, Mills Act

$1.399MM

El Dorado Building

Former Historic Stowell Hotel

#305

1090sf, 2 bed, 2 bath

2 balconies, Mills Act

$749K

Eckardt Building

Former warehouse in the Fashion District

#203

880sf, 2 bed, 1 bath

Private patio, Mills Act

$519,995 

Rowan Building

Former office building in the Historic Core

#617

830sf, 1 bed, 1 bath

Mills Act

$588K

Eckardt Building

Former warehouse in the Fashion District

#208

810sf, 1 bed, 1 bath

Skyline views, Mills Act

$429K

Biscuit Co. Lofts

Former warehouse in the Arts District

#402

617sf, 1 bed, 1 bath

Skyline views, Mills Act

$535K

 

Eastern Columbia Lofts

Former department store in the Arts District

#410, 1200sf, $749k

#707, 1130sf, $749k

#202, 1150sf, $749k

#1009, 1190sf, $899k

Mills Act

More Activity in the Arts District - Barker Block & Biscuit Lofts

DTLA Arts District has become one of the most valuable areas in which to invest. Prices have been steadily rising, and it's no wonder with developments of theaters, galleries, shops, restaurants, GROW market, upcoming SOHO House, Garey Lofts, @Mateo, revitalization of the Coca Cola Building, etc.

Three new lofts available for sale:

Barker Block #542 - 1110sf - 849k

Russell Roney, KW

Barker Block #424 - 1070sf - 750k

Ted Trentman, Realty Source

Biscuit Lofts #114 - 980sf - $748k

Gil Saraf, KW

Activity in the Arts District - Biscuit Lofts and Molino Lofts

The Arts District of DTLA has been hot for a while now. Prices climbing every year, more residents moving to the area, and lots of retail and businesses locating there. Compared to other warehouse districts in NY SF, Austin, Shoreditch in London, it's still a very sparse area. And those who are getting in early are able to snag oversized spaces and units in Mills Act buildings. See below.

Molino Lofts #118
This super loft is currently being used as an office. It is a live/work building and a wonderful investment in a hot area. 2560sf, with original brick walls, updated kitchen, 3 enclosed offices, 2 bathrooms, 1 assigned parking space. Steps from Urth Cafe, Little Tokyo, Zinc, The Springs, Blue Bottle. There is a rooftop pool, gym, sundeck. Asking $1.199MM


Biscuit Co. Lofts #402
This loft in the historic and Mills Act designated building would make for a wonderful pied a terre in the Arts District. 617sf, with original brick wall details, updated stainless kitchen and 1 assigned parking space. There is a lap pool, gym, 24 hour front desk security. Steps from Church & State, Daily Dose, Stumptown Coffee, Bestia, Little Bear, Pour Haus, Zinc, The Springs. Asking $545k.

Split Level Penthouse Warehouse Loft - Barker Block #525

Hard to expect much more from this loft. Great views, privacy, and top floor location, skylight, lofted bedroom, super tall ceilings, 2 bathrooms, parking, etc. Plus it a live/work loft in the Barker Block building, the darling of the Arts District. Developed by The KOR Group, the building boasts a lovely rooftop pool and gym--both with views for miles, courtyard areas and an art exhibition tunnel. Plus it's directly across the street from Urth Cafe, perfect for that morning coffee run. Walk to Black Top Coffee, Zinc Cafe, Bestia, Church & State, Bread Lounge, Stumptown Coffee, Wurstkuche and more. The stunning loft features original wood beams, beautiful wood floors and sleek kitchen. Includes one assigned parking space. 1230sf. Listed at $999k. 

Historic DTLA Loft Living at its Best - Eastern Columbia and The Rowan

Lofts for sale at the two of the most desirable Art Deco and Beaux-Arts buildings in DTLA. Both are Mills Act buildings (prop tax savings!) and have front desk security and are located in the most walkable areas of downtown.

Eastern Columbia loft with a balcony! West facing loft, concrete floors, stainless steel appliances, Italian cabinetry, Kelly Wearstler designed bathroom, 1 parking space. Building has a rooftop pool, gym, courtyard. 1080 sf, $749k. Unit 909.

Rowan Loft with hardwood floors, original double hung windows, exposed brick, Italian kitchen cabinetry. Parking spaces available for a fee. 820sf, 649k. Unit 909.

Two-story Penthouse with Private Rooftop Deck - Higgins Lofts #1004

Rare penthouse pad in DTLA. The top floor loft in the historic Higgins building has a mezzanine that is perfect for an office, guest bedroom or master bedroom as it leads straight up to a private rooftop deck with views of the downtown skyline. There is a skylight that lets in amazing light and 22' tall ceilings. Features 980sf of indoor space, and approx 200sf of outdoor space. Has 1 bathroom. The Higgins Building holds the Mills Act distinction which helps reduce property taxes.

Historic Mills Act Pied a Terre in the $300s

It's still possible to get a historic loft in a wonderful walkable neighborhood in the 300s, in a Mills Act Building. This loft in the lovely Rowan building faces the Spring Street Park and features large double hung windows, exposed brick, Scavolini kitchen, Bosch washer/dryer in the unit, and an open plan layout. The Rowan has a doorman, BBQ patio, hot tubs, and a resident lounge. Walk to  the Farmers Market, Buzz Wine, Bar Ama, Orsa and Winston, Spring for Coffee, The Continental, Spring Street Arcade, Ace Hotel, Terroni, Nickel Diner, Verve Coffee and more. 460sf, 1 parking space with option to lease another. Asking $378k.

Currently Available Industrial Lofts in DTLA

Simply put, there are usually two kinds of lofts--industrial and architectural. The architectural ones are generally the conversions from former bank buildings, offices (think Rowan Lofts, Douglas Lofts, Eastern Columbia Lofts) that have a lot of beautiful character intact, both inside and out. The industrial ones are often conversions too, but have generally been adapted from factories, warehouses or showrooms (think Biscuit Company Lofts, Toy Factory, Barker Block, Textile Lofts).

Below are industrial lofts currently available for sale in these unique buildings:

FLOWER STREET LOFTS IN SOUTH PARK (Formerly a UPS Shipping Hub)

Penthouse Loft #416 - 1648sf - $800k

Loft #215 - 1260sf - $750k

Loft #117 - 1483sf - $683k

BARKER BLOCK LOFTS IN THE ARTS DISTRICT (Formerly the Barker Brothers Furniture Factory & Warehouse)

Loft #424 - 1070sf - $849k

Can You Believe, Prices Haven't Risen in 8 Years?

Here's the reality: prices have risen since 2010. A lot. Then why are so many people clamoring to buy homes, often overbidding?

Because we're barely starting to match 2007 prices. So, look at it this way: prices have not gone up in about 8 years. The price people paid in 2007 is actually more than what people are paying now, which is why some people are still holding on until prices rise even more.

Two Side by Side Units for Sale in the Financial District - 655 Hope #1004 & #1005

It's so rare to have two units come on the market that are side by side, especially in a boutique-style building with only 80 units. Combine the units into one super loft. One of the units is a corner unit with southward views down Hope Street and to the east. Each unit features two full bathrooms with luxury finishes, sleek dark hardwood floors, walk in closet, tall ceilings laundry inside, storage unit, 1 covered garage parking space. Building has a front desk security guard, rooftop deck with BBQ, gym, conference room, and is conveniently accessible to the Metro Red Line. Walk to Bottega Louie, The Bloc, Seven Grand, Fig & 7th, The Standard Hotel, Jewelry District and more. Each unit is nearly 1200sf, and each is asking $799k.

 Courtesy of Jin Lee, Stanford Raffles Realty

One-of-a-Kind Loft Compound by DTLA & Cornfield Park - 1411 N. Broadway

Beautifully reimagined space in a former auto factory. The original bones of the building still intact, the space has undergone a transformation that will impress. 4000sf of renovated living space is matched by a flow into the outdoor private oasis, complete with rain shower and bath. This is a rare opportunity to own a converted residence that is in essence a private compound within a bike ride to the center of DTLA and across the road from Cornfield Park. Minutes to Highland Park, Frogtown, Atwater, Echo Park, Elysian Valley, Brewery, etc.  2 bedroom areas with bonus mezzanine loft, 2 full baths, 2 additional half baths plus outdoor bathing retreat. 2 Parking spaces within courtyard grounds. Total lot is nearly 7000sf. Asking $2.495MM.

Historic Lofts for Sale with Good Resale Potential

It's one thing to get a deal on a property; it's also another thing to make sure the property has good resale value for when you decide to one day sell. Size, orientation and location are things that are often uncompromisable when it comes to resale.

Some interesting props below with good resale potential:

Toy Factory Loft in the Arts District #515

1428sf

Asking $819k

Stamie Karakasidis, Rodeo Realty

  Barker Block Lofts in the Arts District #450

1120sf

Asking $649k

Neil McDermott, Hilton & Hyland

Rowan Lofts in the Historic Core #712

2 beds, 2 baths 998sf

Asking $649k *Mills Act Building*

Anh Tran, KW

Rowan Lofts in the Historic Core #915

1 bed, 1 baths 820sf

Asking $620k *Mills Act Building*

Agnes Ferreyra, JAG

DTLA Open Houses This Sunday 4/5

South Park
1111 S. Grand #510 - 1-4pm
1111 S. Grand #708 - 2-5pm

City West
1234 Wilshire Bl. #511 - 2-4pm

Arts District

530 S. Hewitt #450 - 11-2pm

Little Tokyo
420 S. San Pedro #515 - 2-4pm