DTLA Wishlist

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

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.

Where Are All the Artists Moving To?

This is a question that has been posed to me by several of my long-term investor clients. The once affordable Arts District now has properties that often sell for close to $1MM. You can hardly find a 1-bedroom 850sf studio for under $500k. Aside from perhaps the 9th & Broadway intersection, the Arts District has seen some of the quickest and most significant changes since the revitalization of DTLA as a whole. So where are the resident artists who can no longer afford the huge loft spaces moving to? Many are moving to Lincoln Heights, where you can still get random warehouse spaces for a fraction of what you'd pay just a few miles south. The Brewery, the largest arts colony in the world, is another exclusive compound for many artists. Another area that is being eyed is the pocket between the Arts District and the City of Vernon, where it's mostly warehouse structures, but no-man's land after 6pm. It's an interesting time to be witnessing the spread of what has begun in DTLA, and realizing that soon DTLA may become the center of it all, as it once was back in the day.

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.

SOLD - Rare Two Side-by-Side Combined Lofts for Sale - Rowan #705 & #703

Beautiful loft in the historic Old Bank District for lease. This is a rare opportunity to own two lofts in one at the famous Rowan building. Two units are combined into one, and features huge banks of windows that bring in lots of light during the day and city views at night. Includes original exposed brick walls, 14-ft ceilings, and genuine hardwood flooring. Building amenities include a spa, outdoor deck, lounge, and Spring Street Park is just next door. 3 bedrooms, 3 bathrooms, two kitchens, and just under 2000 sf of space. Offered at $1,299.000. Building is Mills Act-approved.  

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!

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.

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.