DTLA Prices Rising and Days on the Market Decreasing

With COVID-19 getting somewhat contained, the weather as glorious as ever, and the steady flow of transplants to Downtown from places like New York, San Francisco, London and Sweden, prices are either holding steady or going up. 

Just in the past 6 months, there have been high profile building projects nearing completion (Frank Gehry's Grand LA https://www.thegrandla.com/) , some completed (CMC in the Fashion District https://www.californiamarketcenter.com/) and a slew of new businesses opening, and long term leases being signed (Adidas, Forever 21), and EMCEE buying up the Museum Building, which will keep the momentum for the 8th street corridor.

The window for deals in DTLA is finally closing.

California Major Cities to Get Funding for Housing and Development

Newsom wants to allocated $2B towards housing and other development in areas like DTLA, to help move people away from rural fire areas, tackle housing shortages, and climate change.

https://www.latimes.com/california/story/2022-01-13/newsoms-latest-housing-fix-more-californians-living-downtown

Where are the Deals?

Good luck, as there aren't many deals anymore, and even less in the foreseeable future. A good agent will let you in on interesting opportunities such as fixers, tenant-occupied props, and construction next door. The point is, good deals are not as easy to find in real estate as you might think. In a tough buyer's market, you need to ask yourself, do you like the property, and does it make financial sense? The agent should be able to help give you the rest of the picture.

Prices Creeping Up in DTLA

While DTLA was pretty stagnant price-wise since the pandemic began, the end of 2021 showed more turnover and a pickup in sales. 2022 has started off strong for DTLA, with an increase in prices, which is great for sellers. Buyers will have some competition as more people are coming out of the woodwork to buy their first home and or invest in a second property. 

A lot of buyers who had bought their main home are now looking to buy a second property to take advantage of the low interest rates--before they increase even more. With the stock market a little unstable recently, and the increased projection of renters and rental prices, real estate is looking like an excellent hedge compared to other assets. 

Fantastic Deals in DTLA Right Now

Price/sf wise, you can't get better when the surrounding areas are easily over $1000/sf. You can get built-in equity with these prices. Investors, you especially should be looking into these move-in ready places that are beckoning renters!

Elleven #614 - SOUTH PARK
1+1+1pkg - 960SF
$565K or $588/SF
Immaculate 1 bedroom condo with a huge in-unit storage room with laundry. Features east-facing views and overlooks Grand Ave and the South Park Commons Park. LEED Certified Building. 
Coldwell Banker

Flower Street Loft #202 - SOUTH PARK

1+2+2pkg - 1188SF

$639K or $537/SF

Fantastic north-facing, private unit with no neighbors in front. Has 2 parking spaces! Located just a couple blocks from Crypto.com Arena, Whole Foods, The Bloc, Hoxton, Proper, and more.

Douglas Elliman

Cornell Loft #304 - FASHION DISTRICT

1+1+1pkg - 960SF

$525K or $546/SF

Massive windows, concrete flooring and walls for sound insulation, and Mills Act status for up to 70% off property taxes! Steps to Sonoratown, Rossoblu, Cognoscenti, Whole Foods, Holy Basil, Wood Spoon, Lala's, Verve Coffee and more.

Keller Williams

Vero #412 - CITY WEST

3+3+2pkg - 1470SF

$879K or $597/SF

Immaculate and rare 3 bed 3 bath condo with a balcony! Includes 2 parking spaces and stunning amenities. Steps to Fig &7th, Target, Restaurant Row, Financial District, etc.

Wilshire Metro

DTLA - The Only Place That's a Buyer's Market

One thing the shake up of city centers did during COVID was offer unique, first-time-on-market, and sometime bargains for prime properties. A colleague of mine nabbed two properties in the West Village of NYC, and got them for about 25% below pre-COVID prices. A few lucky buyers recently got some of the best units at Eastern Columbia, some that had hit the market for the first time. 

Collectors seem to be buying up unique units that they'd never otherwise see on the market, including rare penthouses that have been significantly upgraded. One person's loss is another one's gain, I guess.

Some of the best units on the market right now:

Eastern Columbia #202
1+1+1pkg - 1150sf - Mills Act Building! - $885k

Coldwell Banker

Elleven #408

2+2+2pkg - 1650sf - Comes with a storage unit! - $1.1M

Compass

Biscuit Lofts #412

1+1+1pkg - Faces the DTLA Skyline! - $1.199M

Douglas Elliman

Eckardt #505

1+1+1pkg - Mills Acts Building! - $545k

Guadalupe Flores

Textile Lofts - #506

1+1+1pkg - 890sf - $635k - Mill Act!

Keller Williams

Luxury Condos Are Moving in DTLA

Barker Block #146 - PENDING - $1.599M

Keller Williams

 940 E. 2nd #1 - SOLD - $2.099M

Tempo

Biscuit Loft #712 - SOLD - $2.35M

Coldwell Banker

Eastern Columbia #311 - SOLD - $1.65M

Coldwell Banker

EVO #2301 - PENDING - $2.395M

Douglas Elliman

Luma #1315-1316 - SOLD - $3M

Compass

Ritz-Carlton #30A - SOLD - $1.7M

Keller Williams

Ritz-Carlton #50F - SOLD - $5M

Homesmart

The Argument Against Renting

INFLATION. PERIOD.

This is such debated topic when home prices are through the roof (no pun intended). I get the perspective of renting a place while the market cools. But my issue with this is that the market may not cool. It may go up or stay the same. Secondly, rent paid is money you'll NEVER get back. And rents are expected to increase 4-5% each year. Mortgage paid, if you hold on the property, is money you'll get back in the form of equity when you sell at the right time. And a 30 year fixed loan during inflation times? No brainer.

But did you know that homeowners have on average at least 50,000 in wealth equity in Los Angeles, while renters have about $600.00?

And here's the other kicker. Anyone who has bought a detached house in LA in the past 12 years is sitting on at least 20% equity. This is the average percentage of increased value since COVID. Crazy.

And don't forget, you don't have to be responsible for the entire mortgage. There's also the hybrid argument. You can rent a place, but still buy an investment property to rent out to someone else who will pay for half your mortgage!

REMEMBER, there's never a bad time to buy real estate, only a bad time to sell.

L.A.'s Largest Homeless Housing Building to Begin Construction on Skid Row

The Weingart Towers to begin construction and targeting a 2023 completion. https://www.weingart.org/building-the-future

It's a step in the right direction and HHH funds finally being used.

Building Highlight - Elleven Condos

Situated on the corner of Grand Ave and 11th St, the Elleven Condos was the first LEED Certified residential building in DTLA! The immaculately kept building has maintained its luxury status with a first class staff, 24/7 concierge-like front desk services, onsite manager 5 days per week, onsite engineer, and amenities such as a south-facing pool deck with hot tub, and garden deck with lush foliage, fireplace, lounge areas, Viking BBQ Grills, and fountain. 

Featured units below:

Elleven #614 - 960sf - 1+1

East facing with views of Grand Ave, South Park Commons, and tree tops. Has a built-in wall partition separating bedroom area, a huge laundry and storage room, glass shower doors. 1 Parking space with Asking $565k 

Coldwell Banker

Elleven #PH5 - 3150sf - 3+2.5

Northwest with views of the DTLA skyline. Has a spacious corner balcony for indoor/outdoor entertaining, grand open plan living areas, rare double entry doors, 2 rare storage units, 2 side by side parking spaces.

Asking $3.795M 

WEA