Supporting the Small Businesses of DTLA, Especially Restaurants

While recovery is slowly happening, many small businesses all over especially DTLA, have suffered not only due to the the lockdowns but due to last year's protests. Help support by opting to dine at the smaller establishments, buy gifts from places like the Flower Mart and the Fashion District or Row DTLA.

Some of my faves:

1. Grand Central Market (Historic Core)

https://www.grandcentralmarket.com/. 

2. Flower Mart (Fashion District)

http://originallaflowermarket.com/

3. Raw Materials Art Supplies (Fashion District)

https://fashiondistrict.org/go/raw-materials-art-supplies

4. Birdies (South Park)

http://birdiesla.com/

5. Badmaash (Historic Core)

https://www.badmaashla.com/

6. Factory Kitchen (Arts District)

https://thefactorykitchen.com/

7. Throw Clay Pottery & Studio (South Park)

https://www.throwclayla.com/classes-1

8. Howlin Rays (Chinatown)

https://howlinrays.com/

9. Bohemian Crystal Beads Factory (Fashion District)

https://beadsfactory.com/bohemian-crystal-rhinestone.html

10. Maccheroni Republic (Historic Core)

https://maccheronirepublic.com/

11. Marugame Monzo (Little Tokyo)

https://marugamemonzola.com/

12. Broken Mouth (Fashion District)

https://www.eatbrokenmouth.com/

13. Le Box Blanc (South Park)

https://www.leboxblanc.com/

14. Redbird (Historic Core)

https://redbird.la/

15. Dylan Lex (@Row DTLA - Produce District)

https://rowdtla.com/collective/dylanlex

16. Frame Pizzeria (South Park)

https://www.framepizzeria.com/

17. 10e (Financial District)

http://www.10erestaurant.com/

18. Sonoratown (Fashion District)

https://www.sonoratown.com/about.html

19. Prank (South Park)

https://prankbar.com/

20. Dylan Lex (@Row DTLA - Produce District)

https://rowdtla.com/collective/dylanlex

DTLA Already Showing Signs of Bouncing Back

While most dense urban centers took a backseat to the suburbs during COVID, there's been signs of people moving back to city centers, particularly in DTLA. Whenever there's a shake up and prices get depressed, those with long term holding plans always come out of the woodwork and buy. 

Investors, city dwellers from NYC, SF, Chicago, Seattle, and other metro areas have been moving into DTLA according to recent sales and leases from other DTLA realtors. There's been a noticeable number of people from out of state moving to DTLA due it's dense city environment and of course the weather. With outdoor dining returning, and indoor dining at minimal capacity, the ability to walk outside in winter to 70-degree sunshine, a slew of activities within 1-2 hours of anywhere (skiing, hiking, lakes, wineries, mountains, beaches), there's a lot going for DTLA.

Sales activity has increased about 8-10% this year from last, and prices have ticked up about 3% from last year. DTLA is still down overall about 7% in prices from pre-COVID times.

Leases are up now too, with more people feeling safer in general and rather than moving out of a walkable area, there are lots of people who are moving within DTLA and trying out new buildings and neighborhoods. 

Entering Spring and Summer, the hope is that with more people vaccinated, the worst is behind us and can move forward to heal, resume business activities, and do our part to help keep the smallest businesses afloat. 

While Prices are Flexible, Buyers are Taking Advantage in DTLA

The suburbs are going crazy with multiple offers and way over-bids. A recent 2 bed 2 bath Mt. Washington house went from $995k to a final sale price of $1.485M. The activity in DTLA has been mellow since the middle of 2020, and now it's starting to pick up. Buyers who are still hardcore about walkability and centrality are taking advantage of the lack of bidding wars in an area that is still exciting, and where there's development happening in the background. And the best kept secret: The highest concentration of Mills Act Buildings and residences in all of LA.

Recent Sales in DTLA of unique properties:

Textile Lofts #405 - Cutest light-filled corner unit in the fashion district. Parking, storage unit, and Mills Act! https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-585120

Textile Lofts #404 - Cutest light-filled corner unit in the fashion district. Parking, storage unit, and Mills Act! https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-585120

Flower Street Lofts #312 - Craziest price/sf in South Park. Includes 2 parking spaces. Amazing deal. https://www.themls.com/mlslistingphoto/listing/slideshow/#/AR20193757MR

Rowan Lofts #102 - Sexy 2-story, 2 bath loft with rare outdoor space, one of only a dozen! And Mills Act! https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-610336

Recently in escrow:

Barker Block Lofts #502 - Someone got a deal on 1330sf! https://www.themls.com/mlslistingphoto/listing/slideshow/#/19-524406

Higgins Loft #1001 - Penthouse loft, these are almost never on sale. Private rooftop patio. Mills Act too. https://www.themls.com/mlslistingphoto/listing/slideshow/#/21-682076

Available for sale:

1100 Wilshire #1705 & 1706 - Rarely on the market, only 5 of these with a terrace in the entire building! https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-622374

https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-660640

Douglas Loft #4D - Charming, includes rare underground parking space, Mills Act. https://www.themls.com/mlslistingphoto/listing/slideshow/#/21-685716

Molino Loft #113 - Arts District gem with a patio! Nearly 1800sf! https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-635760

Eckardt Loft #707 - Top floor unit in a Mills Act Building! https://www.themls.com/mlslistingphoto/listing/slideshow/#/21-677502

Elleven #1006 - Beautifully maintain loft in a top notch LEED certified building in South Park. https://www.themls.com/mlslistingphoto/listing/slideshow/#/21-682634

Eastern Columbia Loft #1210 - First time on the market, 4-level penthouse in Mills Act gem. https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-652400

Pan American Loft #509 - First time on the market, rare Mill Act penthouse with private rooftop patio. https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-655240

Bartlett Loft #1402 - Another Mills Act loft with a private rooftop patio!  https://www.themls.com/mlslistingphoto/listing/slideshow/#/20-595482

What 2021 Will Likely Bring for Real Estate in LA

 LA real estate is very complicated. You have so many types of housing, so many different neighborhoods, so many different hubs of commerce, and so much different geography, all within 30-45 minutes of drive time. This is why there's not a blanket answer that represents exacty what went on, and what's going on in LA RE. 

We know commercial real estate was killed last year. What do you expect when governments lock down offices, and companies scramble to begin the work from home phase? While most of the mid-to-small commercial buildings were destroyed, some of the high profile buildings in central locations like Culver City, DTLA, and Burbank, were snapped up for pennies by developers who have grand plans, like updated office space for hybrid office/home workers. 

One of the industries that killed it in 2020 was residential real estate--mainly for single family homes. We all know the story, everyone fleeing smaller apartments and condos to buy and rent houses with yards and space to work, exercise, etc. I wonder what will happen once gyms and shops are safe to open up, will people get sick of doing everything at home and venture out? For now, we're still riding the single family home wave and prices are slated to go up another 4% from last year.

Condos took a big first hit when the pandemic started, as people left their high rises for sprawl. However, there's also been an influx of people who don't want a huge house to maintain, don't want to live in sprawling neighborhoods in the valley, who want to be closer to the city centers. These folks are buying condos, and that's helped the slower market. 

Relocation companies killing it. Another sign of the times. Relocation companies are busy transplanting people to different cities, and this is propping up the rental market as people "try out" areas. So the rental market should be great in 2021, right? Depends on the stock. If you're a single family residence in a great location, the rental should fly off the shelf. If you're a condo in DTLA, you need to up the game because there's lots of competition. Updated appliances, kitchens, bathrooms, interesting amenities--all things that will help in a slower market.

Taking Advantage of a Buyer's Market in DTLA

While the suburbs and inner burbs are performing the best, some savvy buyers are snapping up prime property deals in cities like NYC and DTLA.

Recent sales in DTLA:

257 S. Spring #3M

Prime corner unit in a Mills Act Building!

Listed for $825k, sold for $795k

Compass/Berkshire Hathaway

849 S. Broadway #909

Prime unit with balcony unit in a Mills Act Building!

Listed for $675k, sold for $620k

Coldwell Banker

645 W. 9th #724

Penthouse unit with views in South Park

Listed for $535k, sold for $525k

Premier RE/C-21

1855 Industrial St #309

Totally remodeled 2360sf unit with private patio

Listed for $1.850M, sold for $1.69M

Compass

1130 S. Flower St #420

Multilevel Penthouse unit

Listed for $1.495M, sold for $1.32M

Compass

746 S. Los Angeles St #102

Amazing live/work storefront unit in Mills Act Building

Listed for $375k, sold for $340k

Berkshire/EXP

1155 S. Grand #1308

Stunning 2 bed, 2 bath and 2 parking in South Park w/ Views!

Listed for $949k, sold for $865k

Remax/Loftway

416 S. Spring #807

Balcony + Mills Act + Park Views!

Listed for $510k, sold for $465k

KW/Coldwell Banker

DTLA Ranked #2 Coolest Neighborhood in the World by Time Out

Just after Esquerra de l'Eixample in Barcelona, our very own DTLA is #2 out of 40 neighborhoods in the world, for coolest city. 

Full article here: https://www.timeout.com/coolest-neighbourhoods-in-the-world

"There’s a version of this year in L.A.'s resurgent city centre that would’ve only been about how MOCA – the Museum of Contemporary Art – dropped admission fees and the new Hoxton hotel stacked hazelnut pancakes. How coveted co-working space NeueHouse moved into the mezzanine of the beautiful Bradbury Building while the Donut Man readied its legendary strawberry-filled doughnuts across the street at Grand Central Market.

But instead this became the most painful year in L.A.'s recent history – and in a city with no single, central gathering place, Downtown became its supportive soul. Following the shocking death of Kobe Bryant, wreaths, candles and a quiet togetherness swallowed the L.A. Live plaza. When the pandemic kept us doomscrolling at home, the Broad museum brought us a bit of virtual Infinity Room calm, while the now-shuttered Broken Spanish restaurant vacuum-sealed tamales and fed undocumented restaurant workers.

And when the killing of George Floyd made injustice too loud to ignore, Downtown was the place for Angelenos to speak up. It wasn’t without strife, but there was a palpable pivot toward unity the day that thousands streamed through Downtown’s streets. In a year of isolation, DTLA – like no other neighbourhood – has consistently brought us closer to our community. —Michael Juliano, Time Out Los Angeles"

Doing the Opposite of Everyone

Investing mantra #1. Remember the crash of 2008? Anyone who saw opportunity between 2008-2012, while tons of people were jumping ship from their homes, did well

In 2020, what is everyone doing? Everyone is buying in the suburbs. Everyone is paying top dollar to get out of the city. You might think of buying in dense city centers now while prices are more reasonable. 

Something to think about.

Prime Corner Units in DTLA Available

Beautiful units like this don't come on the market often. With this year's COVID shakeup, there's been some amazing opportunities to invest in units that you rarely see for sale. 

 

                                    TEN50 Penthouse 2 - 3930sf - $4.75M

Courtesy of GE Dean & Assoc 

Eastern Columbia # 311- 1740sf- $1.84M

Courtesy of Coldwell Banker

    

ELLEVEN #518 - 2070sf - $1.369M

Courtesy of New Star Realty

EVO # 1709 - 2400sf- $1.82M

Courtesy of Premier Real Estate

Luma # 1315-1316- 2879sf- $3.8M

Courtesy of Premier Real Estate

1100 Wilshire # 3208- 1160sf- $1.33M

Courtesy of Compass

DTLA Sales by Price + Days on Market + Most Popular Price Point

Slow pace of sales, but sales are still happening. Days on the market are longer, as expected when you can't do open houses, and it's a production as realtors have to prepare each showing with COVID related protocols. Everything takes longer and everyone needs to be patient--buyers, sellers and realtors included.

That said, price point in the $400-$600k region are doing best. With this price point, you have the largest pool of buyers. 

Condos are selling for about 97% of their asking price. So a $700k condo is ultimately selling for about $679k. Again, this is an average, some are selling closer to their asking, some are selling for less than 97% of their asking. 

See the graph of the recent solds in the last two months, by price point and Average Days on Market.

  

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