Spacious Art Lofts @ 1220 Orange Grove Avenue - West Hollywood

Updated 5/23/11: The 12 units sold out at $665,000 to $815,000 at an average of $370/sq ft.  These distressed prices are lower than any $/sq ft of comparable projects in West Hollywood.

Updated 4/19/10: Prices have been lowered to $679,000 - $749,000 for these twelve, new townhouse-style loft units at 1220 N Orange Grove Avenue in West Hollywood, one block east of Fairfax, between Santa Monica Boulevard and Fountain Avenue. Fans of big units, industrial design, and Whole Foods (just around the corner), should consider the Art Lofts complex.

Updated 6/1/10: 6 units are in contract. 6 units are still available priced: $679K, $699K, $699K, $719K, $739K, $749K. At $363/sq ft - $378/sq ft list price, these are the best priced units in the area.

The twelve townhouses are accessed off a central courtyard area. The 4-story mega-residences, with 2 bedrooms, 2.5 baths, and a mezzanine "loft" floor, range in size from 1,872 - 2,191 sq ft.

Enter on the ground floor to the open kitchen-living area, with double-height ceilings above the living area. Over-sized glass sliders lead to a small balcony. Kitchen appliances are stainless steel, including a very high-tech Bertazzoni range. By the front entrance is a half-bath. Floors are concrete.

Up a flight of stairs is the mezzanine "loft" level with plenty of room for lounging, watching TV, or running a home-office. Flooring on stairs and on upper levels is bamboo.

Up another flight is one bedroom and a full bath, separated by a jumbo-sized closet.

Bathroom counter tops are marble. Cabinetry is sleek wood laminate with metal handles.

The unit gets plenty of light, including from a large window above the stairway on the top floor.

The master bedroom also has a bathroom en suite.

A balcony off the master bedroom provides additional living space and some nice views of the surrounding hills.

The neighborhood includes a mix of small- to medium-sized apartment buildings. The location is midway between the west side and east side of West Hollywood. The North building has seven units and balconies face north. The South building has five units and the balconies face south.

1220 Art Lofts
1220 N Orange Grove Avenue
West Hollywood, California 90046

Sold by Keller Williams - Westside

New Construction in West Hollywood Selling at $380 - 530/sq ft

New WeHo Condo Sales in the Past Two Months

What is selling in the West Hollywood new construction market?

A calvacade of truly excellent modern, well-designed condo projects has come to market, but it seems the same units are for sale week after week. What has actually gone into escrow?

The units that offer value. Developers who adjust their prices and signal to buyers they're getting a "deal" sell units. Some developers have slashed prices and offered units at deeply discounted levels.

8703 West Knoll Drive presented an excellent value to buyers. Unit #201, with 1 br, 1.5 bath and 1,757 sq ft of living area, sold for $740,000 ($421/sq ft). Unit #103, with 2 br, 2.5 ba and 1,636 sq ft of living area, sold for its $699,000 asking price ($427/sq ft).

Three units sold at 841 Westmount Drive, a sixteen-unit project on sale for more than a year. The townhome style units have 2 br, 2.5 ba and 1,504 sq ft of living area. Two sold for $800,000 ($532/sq ft) and one sold for $775,000 ($515/sq ft). 841 Westmount and the Hancock Lofts are the only new construction projects with a pool.
Three units sold at 1248 Laurel Avenue, The Milano. Penthouse #1 sold for $875,000 (1,740 sq ft, $503/sq ft), #102 sold for $669,000 (1,620 sq ft, $413/sq ft) and #204 sold for $640,000 (1,700 sq ft, $376/sq ft). These units have been marketed since mid-2007 and after many price cuts are now closing at deeply reduced levels from the original pricing.
Two units sold at 1351 Havenhurst Drive ("Habitat in the Park.") Unit #103, with 1 br, 1.5 ba, and 1,254 sq ft of living area, sold for $565,000 ($451/sq ft). Unit #102, with 3 br, 2 ba and 1,968 sq ft of living area, sold for $765,000. ($389/sq ft).

One unit sold at Lorcan O'herlihy's 7917 Willoughby Avenue. Unit #2, with 2 br, 2.5 ba and 1,655 sq ft of living area sold for $790,000 ($477/sq ft.)

In the past two months, the highest $/sq ft for new construction is a resale unit at 825 Kings Road. #11, with 2 br, 2 ba, 1,357 sq ft of living area sold for $880,000 ($648/sq ft). The resale of the unit in this trophy building (designed by Lorcan O'herlihy) adjacent to the Schindler House shows there's still strong demand in a top building.
In the realm of resales, we also see that in spite of the challenging real estate market, condos in West Hollywood are not being given away. Four units units sold at 1131 Alta Loma Road, the Park Wellington. Ranging in size from 740 - 1,171 sq ft, the units sold on average for $510/sq ft.

Mortgage Rates Slip Below 5% for 30-Year Fixed Loans

What makes a "perfect storm" for first-time buyers seeking to enter the still-difficult-to-penetrate Los Angeles home market?

Deeply discounted home prices. Check.

Government support. Check (although the $8,000 first-time buyer credit is set to expire November 30.)

And, finally, low mortgage interest rates. Check.

Buyers, prick up your ears. Interest rates for 30-year fixed mortgages have crept below 5% and are again are at generational lows.

The home mortgage market, propped up by more than $1 trillion in government money, is flashing a strong "buy" sign to house hunters.

Extending a summer-long slide, the average interest rate on new 30-year fixed-rate loans nationwide has broken through the 5% barrier to 4.97%, nearing the lowest level in decades, the Mortgage Bankers Assn. reported this week...

Several factors are fueling the trend, including growing confidence that the economy is recovering, an emerging consensus that housing prices are at or near a bottom, and the federal government's push to keep mortgage rates low. [Los Angeles Times]

Mortgage rates fluctuate -- as does the government's commitment to cram down interest rates to promote home-buying. Benefit from these ultra-low interest rates while they are in effect.

In Downtown Los Angeles, Concerto's Future Hangs in the Balance

Concerto Hits Headwinds

Another tsunami of financial malaise welled through Downtown Los Angeles with the news that Sonny Astani has filed Chapter 11 and everything having to do with his mega-project Concerto is up in the air. (Read excellent coverage in Curbed LA.)

For a high-rise of this stature, the project is seriously underwater. This bold, three-tower complex was conceived at the top of the market and was delivered this spring in the worst real estate climate in decades.

Corus Bank, the lender for the Concerto project, was heavily exposed to condominium developments in some of the country’s worst-hit housing markets and was shut down by federal regulators two weeks ago. Not a single unit at Concerto has sold.

That Downtown LA’s marquee, residential development is in disarray is important because of the project’s size -- 77 loft units (sold at auction August 29), a semi-completed 271-unit glass Tower, and an as-yet-unbuilt third tower (currently a deep hole on the site).

Many questions remain unanswered, including the fate of the 77 Concerto Loft units, which, after a month-long marketing blitz, were “sold” to buyers at low prices at the August 29 sale event.

More Housing Units Come to Market

And the projects keep coming online. Here are more than 200 new units that will hit the Downtown market in the next six months:

• 655 Hope – To open mid-October. 80 units, from 600 – 1,268 sq ft, priced $349,000 - $920,000. 17 story adaptive reuse project.
• Barn Lofts – this adaptive-reuse project in the Arts District will be finished by the end of the year with 38 two-bedroom, two-bath townhouses.
• El Dorado – a 12-story building at 416 S Spring Street will open in the first quarter of 2010 with 65 units starting in the low $400,000s.
• Hewitt First – Final construction details are being completed on the 33 units at 130 Hewitt Street in the Arts District.

(Thanks to Los Angeles Downtown News for their oustanding reporting on this beat).

With Concerto’s 348 units, more than two hundred new units, and existing inventory at EVO South, Rowan Lofts, Barker Block and a handful of other projects, there are 800 - 1,000 units that need to be absorbed just to keep pace with current development.

And there is plenty of housing competition from the superabundance of rental buildings on the market.

Prospects for the Downtown Market

How will the current scenario impact the Downtown residential housing market? The failure of a project of Concerto’s size is stunning and bewildering. Like AIG, we thought Concerto was too big to face such an uncertain future.

Sale of Downtown units depends on pricing. The developers who acknowledge the current sorry state of affairs and price their units well will quickly shed inventory and at least cut their losses and move onto other projects.

Buyers are looking for value and quality – and the projects that offer the best combination of these two will be the winner in sales (EVO South succeeds in this area.)

Price point is also critical. Units that need to be financed with jumbo loans (over $729,500 in Los Angeles) face major hurdles. Units that can be financed with conforming loans ($417,000 or less) face the best prospects.

Pent-up buyer demand should keep the Downtown Los Angeles market slogging along with stable, low prices that were unthinkable just a few years ago.

First-time buyers are out in force, as evidenced by number of buyers who lined up for their shot at a discounted Concerto unit. This perennial wave of buyers seeking to put their rent days behind will provide the steam to keep Downtown Los Angeles afloat through these turbulent tides.

Larchmont-Adjacent Gramercy Row Condos @ 140 S Gramercy Place

Just a few blocks from some of the most august homes of Windsor Square is Gramercy Row, a new seven-unit condominium building with townhouse-style residences. A lot of living is packed into these 3-story homes -- 2 bedrooms, 2.5 baths, walk-in closets and roof decks.

Units are priced $699,000 - $809,000, and range from 1,250 sq ft - 1,760 sq ft. HOA is $391 for all units.

On the ground floor is living-kitchen area with double-height ceilings. Floors are polished concrete. Appliances are Frigidaire. Cabinetry is walnut.

Units get lots of natural light from the over-sized floor-to-ceiling windows. All units are accessed from the passageway visible here, which is controlled by a security gate.

Bathrooms feature double basin sinks, and separate tube and showers.

Like many townhome-style residences, this is vertical living. The upper levels have bamboo flooring.

One bedroom is on the mezzanine level.

The master bedroom is on the 3rd floor. Views clear the nearby buildings.

The roof deck is accessed from a spiral staircase located in the corner of the master bedroom.

Those looking to live close to Larchmont Village should consider Gramercy Row. This enclave stands out for its design and bedroom and bath count.

Sold by Prudential California Realty

EVO South -- 75% Sold -- Yet Prime Units and Value Will Wow Even Jaded Buyers

Updated 3/11/2010: EVO is now 75% sold and 70% occupied. Pull up a chair by the pool, this is one of the hottest spots in Downtown Los Angeles. Many of the unique 51 (count them!) floorplans are sold out, but excellent units remain (of 310 total units on 23 floors), including one bedrooms. Serious buyers should investigate the building now.

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

(Above) Views from the two, large 23rd Floor EVO South Penthouses, listed for over $3 million each. Downtown at your footsteps.

Northeast view from a 12th Floor one-bedroom unit. Eastern Columbia Building in the distance.

West view from a 6th floor one bedroom unit. LA Live, Staples, Ritz Carlton Tower surround you.

EVO South in the South Park neighborhood of Downtown Los Angeles is a plush, "green", super high-quality product. The location, construction, amenities, and $/sq value are excellent.

We (still) think EVO South is one of the best projects in Downtown. If you have any questions about EVO, you can contact us by clicking here.

Sold by The Mark Company.

The "Recession is Over" but Commercial Real Estate Investors Sidelined by Uncertain Market

On Tuesday, Federal Reserve Chairman Ben Bernanke proclaimed, at long last, that the recession is "very likely" over.

What impact will the end of the “great recession” have on real estate investors?

It will largely depend on the asset class, region and investment objectives, but the general consensus is that the big, gut-wrenching price drops have already been factored in, and that, although prices continue to decline, the rate of decline has ebbed.

And what might some investors be waiting for? Blood in the streets, or in common parlance, distress, defaults, and foreclosures.

According to the third quarter 2009 PricewaterhouseCooper Korpacz Real Estate Investor Survey, released on Wednesday, most equity investors have remained on the sidelines waiting to capitalize on forced sales and more motivated selling on the part of distressed owners…

"Investors are mostly waiting because of a lack of motivated and forced selling on the part of distressed lenders and property owners," Susan Smith, director of PricewaterhouseCooper’s real estate advisory practice… "Although most investors feel that market conditions will continue to deteriorate over the next several months, the extent of the further deterioration is not so great that they believe that buying now is considered 'bad.'" [Commercial Property Executive]

So, what is an investor to do today? Circle patiently and swoop in when the best assets hit the auction block? Or, keep a canny eye on the market, and, knowing that competition is in retreat, “cherry pick” the best deals?

Both are viable strategies. There is no harm in waiting, especially in these uncertain times. But excellent, unique opportunities surface at unpredictable times, and investors should not turn a blind eye to these “deals” when they present themselves.

Habitat 15 @ 1322 Detroit Avenue, West Hollywood Area

Habitat 15 at 1322 Detroit Avenue is an excellent addition to the east part of the West Hollywood area. What's great about this neighborhood is you can walk to stores (Target) and some of the best restaurants and bars old (Formosa Cafe), classic (Jones) and new (Crown Bar). And all the action of Hollywood is only steps away.

 

This funky 15-unit building has some imaginative architecture courtesy of Predock_Frane Architects. All units have 2 bedrooms and 2.5 baths (except for one 3.5 bath unit). Prices range from $599,000 - $849,000. Unit size ranges from 1,207 sq ft to 2,013 sq ft.

  

Residences are two- and three-level. Ten of the units are accessed from the third floor; the remaining five lower units are accessed from the first floor.

  

Model unit #12 is a three-level, front-facing unit, with entry on the 3rd floor to kitchen/living area.

Appliances are stainless steel and are Jenn Air and Kitchen Aid.  Countertops are Caesarstone.

  

The fourth floor bedroom has incredible western views of the Sunset Strip - Hollywood Hills from the large picture window.

Baths have Toto toilets, Hansgrohe plumbing fixtures, and Duravit porcelain sinks.

 

The second bedroom is on the second floor.

 

On the second floor there's also a den/office area.

 

Model Unit #6 is also accessed on the 3rd floor. The fourth floor has a bedroom that is east-facing.

  

The bedroom also has a small balcony.

 

The unit has an open plan and skylights.

These residences have many upgrades -- Milgard dual pane windows, washer/dryer hook-ups, central AC and heat.  All residences are pre-wired for cable, satellite, internet, and for flat-screen TVs.  Buyers have many customizable options.

HOA for two units advertised is a low $299.  Parking is side-by-side.  This is an impressive project that offers quality and value and some really cool design.

Habitat 15
1322 Detroit Avenue
Los Angeles, CA  90046

Sold by Deasy/Penner & Partners

LA Times: "Southland's Vital Signs Improving"

Many indicators point to an incipient recovery in the pummeled Southern California economy reports today's Los Angeles Times.  The state's exports are increasing, tourism is up, and home prices seem to have hit a bottom.

The median sale price for Southern California homes also increased for the fourth straight month, rising to $275,000 from an April 2009 low of $247,000.

Comerica Bank economist Dana Johnson reported, "The housing sector seems to have made the huge adjustment it needed to make.  It doesn't look like there's terrible further adjustments to follow."

Developers Embrace New Downtown Los Angeles Design Standards

At a meeting last week, developers and designers overwhelmingly embraced the City of Los Angeles' "Design for a Livable Downtown" guidelines, according to the Los Angeles Downtown News.

This Guide is a coordinated, multi-departmental effort intended to promote "walkability, sustainability and transit options" and to reinforce the character of each of Downtown LA's many different neighborhoods.

Some of the points emphasized in the Guide are:

• creating wide sidewalks
• establishing wide setbacks
• building sustainably and "green"
  
• instituting abundant landscaping
• integrating parking into building structures
• promoting open space
• varying horizontal and vertical building details
• regulating signage
• incorporating public art

Historically, so much of Los Angeles was developed without a master plan and large swaths of the city suffer from sprawl and mini-mallization.

The City, wisely, in the 21st century has taken the early 20th century Downtown and imposed a strict vision which will transform the urban core into a distinctive, vibrant, sustainable, livable environment.

The snowballing momentum in Downtown building should be invigorated by this imaginative and useful plan to create one of the great metropolises of this new millenium.

5 Incredibly Useful Web Resources for Los Angeles Buyers and Sellers

There are an amazing number of web gadgets, widgets and resources that are indispensible, whether you are buying, selling or refinancing a home, condo or income property. We routinely turn to these five sites for valuable information:

1. CLTA Title Wizard – The California Land Title Association (CLTA) has a website where you can compare rates for different title insurers. In the example of a $1 million Los Feliz house, title insurance rates for the Seller vary from $2,319 to $3,085 among the major insurers. Whether you’re a buyer, a seller or are refinancing, title insurance is always part of the transaction. Compare rates to save money.

2. Supplemental Tax Estimator - When you purchase a property in Los Angeles County, you may owe Supplemental Property Tax that will be payable during the following year above and beyond your regular Los Angeles County property tax bill. This website calculates the Supplemental Property Tax -- the difference between the tax basis of the seller and the buyer during the period in which the seller paid property taxes and the buyer owned the property. If the property sold for less than previous assessed value, the “Supplemental” Property Tax might even be a refund.

3. ZIMAS - Want to find a map and parcel information for any property in the City of Los Angeles? Go to ZIMAS (Zone Information and Map Access System) to find maps (including a cool utility that allows you to measure distances), Plat Maps (copies of the City’s surveyors maps) and planning and zoning information.  Zimas is particularly useful when trying to identify property boundaries.

4. NavigateLA - NavigateLA allows you to find public works information on any parcel in the City of Los Angeles. Layered maps include information on everything from utility easements to location of manholes to red-flag parking restricted areas. NavigateLA has settled many a dispute on sewerlines – whether the property is connected to the city sewer system, and where the sewerline is located.

5. ZIP Code Boundary Map – An outstanding, Google Maps driven utility that identifies location and boundaries for ZIP Codes across the US.

Los Angeles Multifamily Has Robust Future: Low Homeownership Will Drive Down Vacancies; Echo Boom Generation (25 - 34) Will Drive Revenue

Although the U.S. commercial real estate market may be bleak, the Los Angeles multifamily market offers opportunities for investors, some of which are highlighted in the August 2009 Deutsche Bank Group RREEFF Research “US Property Cycle Monitor”:

Apartment building prices are down:

“…the US apartment market has finally begun to decline in earnest”

Multifamily will be at the forefront of the commercial real estate recovery:

“Short lease terms in the multifamily sector enable performance to reflect economic upticks quickly”

The ‘echo boom’ generation will drive rental demand:

“In the next 10 years, echo boomers will cause roughly two million household increases among the 25 – 34 year olds, traditionally a vital renter cohort”

Other forces favoring the Los Angeles multifamily market:

• Traditional low vacancy rates
• Low homeownership rate going forward
• Low permit activity for multifamily in Los Angeles County
• “Floor” established in residential market
• Hedge against possible future inflationary environment

As the real estate adage goes, you make money not when you sell but when you buy. Timing is everything -- and getting the underlying asset on the cheap is the best way to lock in returns. Investors should not disregard the opportunities that present themselves today when negative sentiment is at an alltime high.

443 N Palm Drive, Beverly Hills: Luxury, Comfort on a Grand Scale

For those desiring a 2,500+ sq ft pied-a-terre in Beverly Hills, look no further than 443 N Palm Drive. These spacious, well-designed units offer luxury, comfort, a doorman, 24-hour security and a Beverly Hills address. Updated October 9, 2009: Prices have been cut -- a lot. List prices are: PH3: $2.6 million; PH2: $2.5 million; #303: $2.1 million.

This five-story building has thirteen units, seven of which have sold. All remaining units are 3 bedroom - 3.5 bath or 3 bedroom - 2.5 bath. Prices range from $1,649,000 for a 2,562 sq ft ground floor unit to $2,600,000 for PH3 (seen here) with 3,034 sq ft of living area on two floors and a 508 sq ft rooftop deck with jacuzzi, gazebo and barbecue. Enter into the fifth floor where there's the living area.

You'll also find an immense kitchen with Miele and Gaggenau appliances. And plenty of room to entertain. Take the stairs up …

To this private enclave on the roof with hot tub, BBQ and excellent views. You might want to stay a while.

From the living room, take the stairs down to the 4th floor where you’ll find the bedrooms, including a very large master ...

... And a very large master bath ....

Homeowners dues are $1,262.00 for all units. Units come with three parking spaces. Beverly Hills is a world apart, with mad bidding wars for houses in the Flats even today. Those looking to get into the neighborhood without the maintenance of owning a single family home should check out 443 N Palm Drive.

Sold by Platinum Realtors