Will LA Be Olympics-Ready?

Massive Challenges for LA Before Olympics

https://www.forbes.com/sites/michaelgoldstein/2024/12/23/will-los-angeles-really-be-ready-for-the-2028-olympics/

Massive Art District Development Changes to Mixed Use

 Massive Mixed Use Arts District Development Continues

A development in the Arts District once slated for commercial is applying to change a portion of the project to residential (apartments for lease).  The investment and growth in the area for the past 5 years has been steady, and better than other parts of DTLA. Meanwhile, condo prices in the area have dipped a bit due to the influx of residential competition. As we all know, this is temporary once the development brings in more residents and demand.

https://la.urbanize.city/post/bjarke-ingels-designed-670-mesquit-development-could-cut-offices-more-housing

Quick DTLA Stats

 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

South Park DTLA Renamed to "Social District"

DTLA's South Park Renamed "Social District"

Not the most creative name, but South Park, which doesn't actually have a lot of parks, has been officially renamed "Social District." The argument being that it's the hub where LA Live, Crypto.com Arena, Convention Center, hotels, lots of upcoming dining spots, etc are located. 

Yes Please, to a Park in South Park!

Motion for South Park parking Lot to Become Park

Located next to the AEG offices and across from the Elleven Lofts. Finally, a decent proposal from the city and one that if passes, will pave the way for more parks in DTLA.

https://www.spna-dtla.org/blog/motion-for-park-in-south-park-on-aegs-grand11th-lot

Buyer Now Paying Their Buyer's Agents, and Other New Rules

With the recent changes that took place on August 17, buyers are now having to jump through a few more hurdles to get that home. 

1. Buyers now need to sign an agreement with their agent to even view a property. Yes, this sounds clunky, but's it's just an agreement stating that you're being officially represented when you look at properties. This protects all parties.

2. Next, Buyers now are obligated to agree to paying their agents a commission for closing on a property--unless the agent doesn't want to be paid which will likely never happen. This is basically how it's done in NYC--it's like a finder's fee. This commission is of course negotiable.

3. Yes this sounds like a burden, but guess what, lots of little ways this can play out:

        - This obligation to pay commission to the Buyer's agent can be paid by the Seller.

        - When a Buyer submits an offer, they can ask the Seller to pay for this agent commission 

        - The Buyer just needs to write this into the offer.

        - Believe it or not, many Sellers are open to paying this obligation for the Buyer.

        - This commission, whether paid by Buyer or Seller, is negotiable.

        - If the Seller won't pay this, oftentimes, a lender can roll this into the loan amount.

Will LA Be Ready for 2028 Olympics?

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.

• South LA - lot of the stadiums and venues located here
• Beverly Hills, Hollwood - tourist landmarks, Hollywood sign, Walk of Fame, museums
• DTLA - where a massive amounts of newer hotels and public transit will be, along The Broad, Walt Disney Concert Hall, Grand Central Market, Arts District

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:

https://www.nbclosangeles.com/news/local/los-angeles-secures-900-million-in-federal-funds-to-improve-public-transit-ahead-of-2028-olympics/3379834/?os=roku...&ref=app

The Mills Act Hack for High Interest Rates

There are basically only 2 things:

1. Get the Seller to pay for some of your loan points

2. Buy a Mills Act property

The first one is not as easy. A good lender will be able to do some juggling, switching, replacing and adding and subtracting to get you the best rate. But you have to assume the seller will pay for your points, give you closing credits, or some a shave in price to help offset your rate.

Or, you can simply buy a Mills Act property that will cut your annual property taxes by between 60-70% off. Here's the math:

$1M price

Annual property taxes w/o Mills Act: $12,500/year, or $1041/month. Yes, that's like a quarter of your mortage or more.

Annual property taxes w/ Mills Act (assuming 70% off): $3750/year or $312.50/month. Think of all you can do with the $728.50/mo you'll save. Or in a lump sum, that's $8742/year. That's a vacation. Or a new Viking stove. Or nearly all your HOA dues paid for. 

The Beauty of a Loft

The blank slate. The creative flexibility. The live/work aspect. And so much fun to re-imagine.

There's a reason why lots of creative people love the loft space. They're not confined to a finite layout--there are many possibilities to make the space your own without having a space defined for you.

1.

In a traditional house, the layout is what it is. Sure, you can convert the dining room into an office, but then you don't have a dining area. Or maybe you want a larger living space and one less bedroom, but the structural walls won't allow for this without major construction.

A loft gives that flexibility for creative vision. This is why you'll often see lofts become drastically different when they move from owner to owner. It might be 2 bedroom loft in one life, and then an open plan art studio or showroom in the next life.

2.

Then there's the general drama of a loft. The tall ceilings, concrete pillars, barrel ceilings, exposed brick, massive windows. 

3. 

The live/work status of most lofts. You might have an owner use their loft as a photography studio, or design space, or a dual live/work showroom, or just live in it. The flexibility of zoning as "live/work" adds value and a larger audience pool for buyers as well as renters.

4. 

And of course the building itself, which often has an interesting history. Maybe it was converted from a toy factory, department store, or old bank building. 

Rates Up, But Prices Still High?

When rates go up, normally, prices start barreling down. But prices haven't gone down much at all. This is because there's not as much housing available to go around. When you see areas that have some more price softening, you'll see that the areas have more housing inventory. 

One thing is for sure, there are some deals to be had out there as the multiple offers are starting to go away, and price drops have increased and days on the market are also increasing about about 10 days compared to the same time last year.

Some interesting deals right now in DTLA based on Price/SF, rare corner, Mills Act, layout, etc:

Cornell Loft #704 - $465K - L-shaped layout, parking, massive windows, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-374153

Bartlett Loft #1304 - $465K - 14" ceilings, Mills Act, exposed brick, north facing

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-347225

Eckardt #504 - $489K - Parking, soaring ceilings, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/23-313901

Eckardt Loft #403 - $475K - Corner orientation parking, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-348103

Rowan Loft #816 - $550K - Rare corner with coveted park views, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-372451

Textile Loft #1002 - $595K - Parking, storage, corner orientation for stunning views, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-373185

EVO #402 - $599K - 2 bathrooms, luxury amenities, parking

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-375881

Eastern Columbia #307 - $810K - Massive 14' ceilings, coveted south facing, EV Charger, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-374437

Eastern Columbia #603 - $900K - Massive double unit, 2250sf, Mills Act, storage unit, parking

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-372451