Silver Lake - Echo Park Market Round-Up: July 2009

Sixteen houses sold in the Silver Lake - Echo Park neighborhood during July 2009 with a median sale price of $754,000. Three of these sales were foreclosures -- all of which sold for $454,000 or less. Excluding the bank-owned properties, the median sale price for July was $810,000.
Two sales were for over $1 million. 2331 Cove Avenue sold for its $1,750,000 asking price. This 3 bedroom, 2 bath 2,316 sq ft home sits on a 15,000 sq ft lot and is a Los Angeles cultural monument (four modernist architects designed it, the former head of Arts Center lived there.)
2501 Kenilworth Avenue sold for $1,010,000, 8% below its $1,100,000 asking price after only 2 days on the market. This Spanish home has 3 bedrooms, 1.75 baths, 1,905 sq ft of living area on a 5,035 sq ft lot. The house is in the Moreno Highlands and also the Ivanhoe School District.
1337 Westerly Terrace illustrates how first-time buyer interest is bidding up prices. This 2 bedroom, 2 bath house with views of Downtown was listed at $629,000 and sold at $710,000 in multiple offers, 13% above the asking price. The house is on a 4,720 sq ft lot and was on the market eleven days.


In the domain of distressed properties, buyers are also finding a competitive market. 2215 Reservoir Street, a foreclosed (REO) 1 bedroom, 1 bath home with 768 sq ft of living area on a 2,482 sq ft lot was listed at $245,025. After eleven days on the market, it sold for $301,500 -- 23% over its asking price.

LA Times: "Housing Index Hints at Upturn"

Recently, there have been rumblings in the press that the local real estate market may have hit bottom. Yesterday, the Los Angeles Times reported that the market may actually be in the incipient stages of an uptick.

Home prices in Los Angeles and across the nation are showing signs of life...prices in the Los Angeles area are on the rise for the first time since the local market peaked in September 2006.

"There are hints of an upward turn from a bottom," David M. Blitzer, chairman of the index committee at Standard & Poor's, said Tuesday.

In Los Angeles, home prices ticked up 1.1% from May to June on an unadjusted basis, although they are still down almost 18% from a year earlier. the Case-Shiller index for the L.A. area now stands at 160.90, down from its peak of 273.94 in September 2006. (It was at 100.00 January 2000.)

But all the wreckage from the boom-to-bust real estate market has left the state of California in a pickle. The Los Angeles Times also reported yesterday in an article entitled "California assessed values fall":

Tax officials reported Tuesday that total statewide property values fell by 2.4% in the last fiscal year, the first such drop since California began keeping records 76 years ago in the depths of the Great Depression.

Ouch. Look for some fiscal belt-tightening (but not cratering property values!) for some time to come.

Rowan Lofts Auctions 19 Units August 29 in Downtown Los Angeles

The Rowan Lofts in Downtown Los Angeles will be auctioning 19 units on August 29, with below market pricing of $219,000 for studios and $279,000 for one bedroom units. Updated October 13, 2009: Rowan Lofts is 60% sold and has excellent units starting at $219,000. See our full review and pictures by clicking on this link.

This fully renovated building at 5th and Spring Streets in the Old Bank District has 206 units and is the brainchild of Goodwin Gaw, who turned the Hollywood Roosevelt Hotel from dumpy dive to Hollywood hub just a few years ago.

Units in the building have over-sized windows framed in restored Honduran mahogany, Scavolini cabinetry, granite or Caesarstone countertops, Bosch appliances, Toto Vanity sinks in the bathrooms and are eligible for Mills Act reduction in property tax of up to 60%.

Hallway floors are lined with Carrera marble. Elevator doors have nickel- and silver-detailed Art Deco elevator doors. They don't build them the way they used to. Concerto, which is also having a one-day sale event at its Lofts building on August 29, has some competition across town. [Rowan Lofts]

Hancock Lofts, West Hollywood: Hip, High Style @ 901 Hancock Avenue

Hancock Lofts at 901 Hancock Avenue in West Hollywood is a snazzy 31-unit new building at an unbeatable central West Hollywood location.

Updated 4/26/2010: 14 units were auctioned April 25, 2010. 15 units are still available.

Located at the corner of Santa Monica Boulevard and Hancock Avenue in the center of West Hollywood's commercial district, restaurants, bars, coffee shops, gyms, Trader Joe's are all at close range.

The award-winning architects Koning Eizenberg (also responsible for the Standard Hotel Downtown) designed a cool, open, loft-like building. Here's a view of the lobby entering from the Hancock Avenue entrance.

Condominiums range in size from 1,000 to 1,800 sq ft and feel top-of-the-line from the robust floor-to-ceiling windows, the Miele and Jenn-Air appliances to the European walnut cabinetry. There is a mix of 1 bedroom + 1 bath and 2 bedroom + 2 bath units, including a few two-level townhomes.

Floorplans include an open living-kitchen-dining area, separate bedroom and balconies.

One nice feature is the sliding wood panels on the balconies that can be adjusted to provide maximum light or privacy. Floors can be delivered with polished concrete or hardwood for the same price.

There is not a bad unit in the house. The 2nd floor units are sufficiently removed from the street and have nice views. The 4th floor views are excellent.

Bathrooms are tiled and are simple and clean.

Two excellent features are the 2nd floor pool and cabanas (it feels like a boutique hotel) and the ultra-convenient fifteen spaces of guest parking on 2nd floor roof.

1 bedroom units come with 1 subterranean parking space. 2 bedroom units come with 2 side-by-side spaces.

Pricing was high by local standards.

Two units have closed and two others are currently in escrow. HOA dues are $542 - $630 per month. 1 storage unit is included with each unit.

Sold by Lee Homes

New Sale Units at EVO

Here are some recently reduced units at that 4-Star, Green, 311-unit building near Staples Center in Downtown Los Angeles (updated 3/10/10):

EVO -- prices of 1 br, 1 ba units available 3/11/10:

#610 -- $520,000 -- 858 sq ft -- West Facing Terrace
#1314 -- $485,000 -- 858 sq ft -- West Facing
#1106 -- $460,000 -- 890 sq ft -- West Facing
#1405 -- $430,000 -- 914 sq ft -- East View
#1207 -- $420,000 -- 954 sq ft -- East View

EVO -- prices of "Featured 2 Bedroom Homes" available 3/11/10:

#1702 -- $1,475,000 -- 2,346 sq ft -- SW Corner unit
#1906 -- $810,000 -- 1,177 sq ft -- West Balcony
#1910 -- $775,000 -- 1,160 sq ft -- West Balcony
#1108 -- $730,000 -- 1,177 sq ft -- West Balcony

There are 51 different floorplans -- check out the EVO South website where you can see each of them in detail.

Photos above and below taken from the roof deck off the gym on the 24th floor. Sky and city (and maybe just a little smog.)

Sunset Strip - Hollywood Hills West Market Round-Up: July 2009

22 single family homes sold in the Sunset Strip - Hollywood Hills West neighborhood in July 2009, with a median price of $1,267,500. Sales and median price are about on par with July 2008 when 20 homes sold with a median sales price of $1,287,500.

Some high end sales show how much the top end of the market has roared back from darkest days of the financial crisis.
9161 Oriole Way, a fully rehabbed house built in 2001, sold for $12,800,000 a few mill off its $15,450,000 asking price, in a brisk 19 days. Located in the exclusive Bird Streets, this house has 6 br, 9 ba and 9,696 sq ft of living area on a 32,234 lot.


1430 Sunset Plaza Drive was another sale that tipped the scales. This newly constructed house on lower Sunset Plaza Drive by Rising Glen sold for $9,100,000, 9% below its $9,995,000 asking price, after 67 days on the market. The house has 5 br, 7 ba, 5,650 sq ft of living area on an 11,330 lot.
In the under $5 million range, 2305 Achilles Drive, a top-to-bottom 2008 remodel in the Mount Olympus neighborhood, sold for $4,100,000, just below its $4,295,000 asking price, in 21 days. The house has 6 br, 4.5 ba, 5,600 sq ft of living are on a 17,030 sq ft lot.

Anecdotal evidence shows that the hardest-hit segment of the Los Angeles real estate market is the $1.5 - $3.5 million range. Fewer buyers are able to qualify for the jumbo loans required to make these purchases, resulting in fewer sales and downward pricing pressure. One sale shows how dramatically values have changed.
1663 N Crescent Heights Drive, sold for $2,250,000, $700,000 below its $2,950,000 asking price, after 127 days. This 1989 construction has 4 br, 4 ba, 4,082 sq ft of living area on a 9,680 sq ft lot. It previously sold for a $3,350,000 in January 2008, an astonishing 33% decline in value in approximately 18 months.

Currently, in the Sunset Strip - Hollywood Hills West neighborhood there are seven houses listed at over $10 million, 25 houses listed in the $5 - 10 million range, and approximately 80 houses listed in the $2 - 5 million range. Unless owners "capitulate" and acknowledge the recent decline in values for high-end homes, many of these properties will simply not sell.

WSJ: New Residential Appraisal Rules Flawed

The Wall Street Journal chimed in on the current debate over new regulations governing residential appraisals

Since May 1, a Fannie- and Freddie-mandated appraisers’ code of conduct has been in place, in which loan officers, mortgage brokers and real estate agents no longer communicate with appraisers on a transaction.

The goal? To prevent these parties from influencing appraisers and over-inflating real estate values.

Under this new code of conduct, banks now outsource their appraisals to appraisal management companies, which take a 40% or often greater cut of the appraisers’ fees.

Appraisers’ incomes have plummeted, sending them to the far reaches of their regions – often outside their area of expertise – to perform appraisals.

The result? Appraisals have gone from “high ball” to “low ball” – and are dampening real estate values and a potential real estate recovery.

Squeezed by a drop in fees, some appraisers are compensating by driving long distances to handle more assignments. Their wanderings are raising questions about whether they know enough about the neighborhoods to accurately assess the value of homes…

Appraisers are required to follow a set of national rules known as the Uniform Standards of Professional Appraisal Practice. Among other things, those rules require that "an appraiser preparing an appraisal in an unfamiliar location must spend sufficient time to understand the nuances of the local market."

Yet some appraisers who travel long distances to find work may be hard-pressed to spend "sufficient time" in an unfamiliar market. [Wall Street Journal]

What recourse does a buyer or homeowner refinancing have who gets a too-low appraisal?

First, check the appraisal for accuracy. Some comps may not be comps at all, because they inaccurately record some feature of a property. Consumers can point to flaws in the appraisal and can request that more accurate comps be used.

Second, consumers can request that a second appraisal be done. A new appraiser (perhaps with better knowledge of the area) may come up with a different value. The downside of this latter option? Paying for two appraisals.

LA Times: Home Sales and Prices on the Rise

Is it too early too call a bottom for the Southern California home market? Maybe not. The trend towards higher median sale price and increased sales volume that began a couple of months ago is continuing.

Southern Californians are shopping for homes again, optimistic that values have been beaten down about as low as they will go and triggering the highest sales levels in more than two years.

A report released Tuesday shows a sharp rise in home purchases and an increase in median prices for a third straight month -- suggesting that the two-year decline in home values may finally be over.

In Los Angeles County, the median home price hit $321,000 last month, after lingering at $300,000 for most of the year. [Los Angeles Times]

Most of the activity is concentrated in the entry-level segment of the market, where bidding wars for properties priced $500,000 and under are becoming commonplace. And much of this market consists of foreclosed (REO) properties, which are typically priced aggressively low, in part to sell quickly so banks do not have to manage this inventory.

But there are signs that even the high-end market is showing signs of resilience: Malibu, Beverly Hills and Brentwood all showed sales increases over July of last year.

With a large backlog of foreclosures still to hit the market, this brisk sales activity could continue for some time to come. In July, there were 125,000 foreclosures in California scheduled to hit the auction block, nearly twice as many as during July of last year.

With new declines in interest rates, expect the hotly contested lower segment of the market to remain overheated. This may be bad news for buyers who lose out in competitive multiple-offer situations – but a welcome sign of health for the overall residential real estate market.

West Hollywood Market Round-Up -- July 2009

Six single family homes sold in the West Hollywood area in July 2009 with a median sale price of $865,000.

The highest priced sale was 351 Westbourne Avenue, a 3 br, 2.5 ba, 2,000 sq ft newly rebuilt home, which sold for $1,675,000, after 253 days on the market. The original list price was $1,929,000. This was the only single family sale in the area over $1 million during the month.
8908 Dorrington Avenue, a 2 br, 1 ba, 1,140 sq ft home on a 3,999 sq ft lot sold for $860,000 after 53 days on the market. The original list price was $975,000.

To illustrate how values have fallen in the past year, we can turn to the sale of 8920 Dorrington Avenue, a 2 br, 2 ba 1,074 sq ft home on a 3,999 sq ft lot, which sold for $1,140,000 in July 2007. The sales of these two Dorrington homes suggest that values in the $1 million range have dropped approximately 25% in the past two years.

Sales volume and median price are on par with July 2008, when six single family homes sold in West Hollywood with a median sale price of $860,000.
One income property sold in the West Hollywood area during July 2009. 1243 N Genesee Avenue, a 10-unit building with 7,038 sq ft of living area on a 13,466 sq ft lot, sold for $1,650,000, well below its original $2,450,000 asking price, after 320 days on the market.

Gross income is $136,500, giving a GRM (gross rent multiplier) of 12.1. Gone are the days when income property buyers would pay over-inflated values for units just because they happen to be in a desirable West Hollywood neighborhood. The rout in real estate values has created a leveling effect so that properties from the Eastside and the Westside are selling at similar metrics.

Ritz-Carlton Residendences at LA Live 65 - 70% Sold

One of the most impressive buildings to rise in the Downtown Los Angeles skyline in the past couple of years is the Ritz-Carlton Residences at LA Live. Floors 27 - 52 of this majestic tower house some of the most sought-after condominiums in the entire Los Angeles area. The building is 65 - 70% sold and will be ready for occupancy in March 2010, when the Marriott (on the building's lower floors) opens its doors.

What does the Ritz-Carlton Residences at LA Live have going for it? Everything. Located at the heart of the new entertainment and sports district in Downtown Los Angeles near the Staples Center and Nokia Theater, these luxury homes offer convenience and five-star amenities across the board.

Pull up and the valet takes your car. Ride the elevators to the 27th floor where you will be greeted in the Sky Lobby, where the concierge service will cater to your every whim. The private 26th floor pool and fitness center is also at your disposal. As is the ground floor spa. And the residences, with approximately 6 - 11 units per floor, are designed with classic Ritz-Carlton refined, taste.

One bedroom units range from $1,388,000 - $2,000,000 for units of approximately 1,000 - 1,600 sq ft. Two bedroom units range from $2,100,000 - $3,100,000. HOA fees range from $1,700 - $4,500/month depending on square footage.

The owner and developer is AEG, the group behind the Staples Center, O2 Arena, Home Depot Center and Nokia Times Square. The architect is Gensler. For those who like to see the Lakers (and share elevators with the Lakers, and live the Lakers' lifestyle) you couldn't have found a better place. But you'd better act soon: the building should be entirely sold within the next six months.

Luminaire on Sale: 928 Croft in West Hollywood Slashes Prices

We've previously written about the Luminaire at 928 Croft Avenue in West Hollywood's Melrose Place Design District and how this 12-unit complex is well-located, has great layouts, superior finishes and feels like a high-end project that one would be delighted to come home to.

But now, the Luminaire's "value proposition" gets better: prices have been slashed. Two units are currently in escrow, and the prices of the other ten units have been reduced to an average of $511/sq ft.

Sale Prices at the Luminaire:

Updated 4/26/10: 8 of 12 units have sold, from $420 - $500/sq ft. 3 units are still for sale.

• #101 - 2,053 sq ft, 120 sq ft patio - $1,095,000 (now $949,000)
• #102 - 2,247 sq ft, 275 sq ft patio - $1,195,000 (now $1,099,000)
• #103 - 2,413 sq ft, 835 sq ft patio - $1,250,000 (in contract)
• #201 - 2,053 sq ft, 44 sq ft patio - $995,000 (sold $864,500, $421/sq ft)
• #202 - 1,379 sq ft, 72 sq ft patio - $595,000 (sold $575,000, $426/sq ft)
• #203 - 1,661 sq ft, 26 sq ft patio - $795,000 (sold $769,000, $462/sq ft)
• PH301 - 2,053 sq ft, 44 sq ft patio - $1,095,000 (sold $950,000, $462/sq ft)
• PH302 - 1,106 sq ft, 108 sq ft patio - $575,000 (sold $550,000, $497/sq ft)
• PH303 - 2,128 sq ft, 108 sq ft patio - $1,195,000 (price unchanged)
• PH304 - 2,337 sq ft, 52 sq ft patio - $1,225,000 (sold $1,125,000, $481/sq ft)

Take a look now, the more affordable units should sell quickly. There have been few sales of condos units in West Hollywood priced over $1 million, however, buyers might indeed step up and purchase some of these excellent, jumbo units.

Sold by deasy/penner & partners

Exclusive SoHo House Comes to West Hollywood

Attention global media elite, you now have a new watering hole. Trendsetting private club SoHo House, with outposts in London and New York, now gains a toe-hold in West Hollywood.

The Luckman Plaza Building at 9200 Sunset Boulevard at the border of West Hollywood and Beverly Hills will be the new home to SoHo House in Los Angeles. The Beverly Press reported that on July 29, the West Hollywood Planning Commission approved the club, which will operate on the penthouse of this newly rehabbed building and will also include a rooftop pool.

There will be a five-month construction phase before doors are opened. Plans also involve converting ground-level offices into a spa and retail space. The property owner is Mani Brothers Real Estate Group.

Agents, managers, producers and executives, hit your Rolodexes. You're going to want to be in on this game.

There couldn't be a better "Westside meets Eastside" location. Far from brash Hollywood, out of the spotlight, this exclusive, members-only club will indeed be the place to be. Order a drink, pull up a chaise lounge -- and let the show begin.

Updated August 20, 2009: On August 17, the West Hollywood City Council unanimously turned down an appeal that sought to prevent SoHo House from opening doors.

Per the Beverly Press, opponents are concerned about increased traffic, crime and paparazzi and feel the hours (rooftop open until midnight, top-floor restaurant open to 2 AM) are inappropriate for an office building. Supporters believe this is a classy establishment that will draw a sophisticated crowd.

The bottom line: the project is scheduled to open doors in time for the February awards season. Expect the bash of a lifetime at the 2010 Oscar party.

West Hollywood Developments Movietown Plaza and House of Blues Up for Review

Draft Environmental Impact Reports (DEIR) for two new developments in West Hollywood were released July 28, showing how the city is being transformed into a high-density live-work-play neighborhood.

At Movietown Plaza, 7300 – 7238 Santa Monica Boulevard (current home of Trader Joe’s and eighteen small businesses) a 9- and 10-story condo building (294 units) will arise, along with 32,300 sq ft of commercial space and a 76-unit affordable housing building for seniors with retail on the ground floor.

Updated 10/14/11: Curbed LA reports that the Movietown Plaza development site is up for sale and will not go forward in its current incarnation.  What will happen to this shuttered, dormant retail complex?

Nine and ten stories is tall for West Hollywood, and this project should change the city's grittier eastside into a bustling, upscale neighborhood like Manhattan’s Chelsea. But it will also irreversibly turn a quiet neighborhood with many single-story structures into a city. Casden Properties is the developer. The project is bounded by Santa Monica Boulevard, Poinsettia, Fuller and Romaine.

In West Hollywood's Sunset Strip neighborhood, the Sunset Time project will redevelop four contiguous parcels at the House of Blues site at 8430 Sunset Boulevard into three hotels (with 149 rooms), 40 residential condos, five affordable housing units, and 35,400 sq ft of commercial space with 246 parking.

Live Nation has a lease at House of Blues until 2025, but the city is seeking to relocate this iconic music institution to another venue. Sunset Time will enhance the area's reputation as central, dynamic, leisure-entertainment neighborhood. The project is bounded by Olive – Sunset – De Longpre and Fountain.

Read the Draft Environmental Impact Reports for both of these projects on the West Hollywood website

"Harper West Hollywood" Nearing Center Stage

One exciting project that has been on our radar for almost two years is nearing completion. Harper West Hollywood at 1236-1252 North Harper Avenue (between Fountain and Santa Monica Boulevards) is a ground-breaking preservation and redevelopment project that includes 32 new construction lofts and 8 affordable rental units. The historic Spanish-courtyard apartment building The Ramona is the centerpiece of this site redesign, around which two new loft-style buildings have been constructed.

Updated July 8, 2010: The project is now for sale, and Adner Realty Group is pleased to announce that we are doing the social media and online marketing for the project.  Units are priced from $499,000. 

Updated August 26, 2010: Harper West Hollywood has cut prices on the units an average of 12%.  

The architect for the project, Ric Abramson of Work Plays Studio-Architecture, preserved the best of the old Ramona and added a second courtyard with fountains and lots of green space, while retaining the mature trees and sight lines of the former site. (The preservation battle to 'Save the Ramona' was chronicled by Curbed LA.)

The new four- and five-story loft buildings will contain a mix of 14 large 1 bedroom / 1.5 bath units and 18 2 bedroom - 1.5 or 2 bath units ranging in size from 1,285 sq ft to 1,932 sq ft. The 8 760 sq ft Ramona units will be affordable housing. The 32 new units will include garden flat apartments, one- and two-floor units, as well as penthouse lofts.

The new lofts will have full height glass windows, exposed concrete features, wood floors, and operable fireplaces. Kitchens will have stainless steel appliances and stone slab countertops.

Two smaller new construction projects, 1200 Sweetzer (10 units) and 8265 Fountain (7 units), are only a half-block away. But Harper West Hollywood should stand up to the competition. With lots of green space, ample setbacks and what look like stellar layouts and units, this project is one to watch. Developer and General Contractor is GTO Development.