655 Hope Street in Downtown Los Angeles: 17 Stories and 80 Units of Glass, Steel and Fine Finishes at the City's Center

Updated 4/22/10: The developers of 655 Hope in Downtown Los Angeles elected to auction only 30 of the 45 lofts on April 18, 2010. This adaptive reuse project (an office building -- with lots of parking!!! -- converted to residential use) is located in the center of Downtown close to Staples Center, LA Live, Ralphs Freshfare supermarket, and the 7th Street Metro Station.

The building consists of 17 stories, the lower floors of which are reserved for parking. There are 8 units to a floor, which range in size from 600 sq ft for a 1 bedroom, 1 bath unit, to 1268 sq ft for a 2 bedroom, 2 bath unit. "Starting bids" are $165,000 for the least expensive units. (Expect the units to go for much more). HOA dues vary according to unit size.

What did the units sell for at auction? $268,000 - $500,000. This amounts to $329/sq ft for the largest floorplan (1,255 sq ft) on a lower floor (9th), and $486/sq ft for the smallest floorplan (and we mean small -- 600 sq ft) on a high floor (15th). See more details about the auction at Curbed LA.

The finishes have the polish of a high-end project. Floors are an attractive dark chocolate wood. Kitchen are outfitted with GE Profile appliances, glass tile and slick counters. The building has a fitness center and a roof deck.

Those looking for a traditional layout with enclosed bedrooms will be disappointed by 655 Hope's open floorplans. One can see that a 2 bedroom unit (like 1502, pictured above) has no doors, and it's up to you to create the boundaries between rooms. Here's a walk-through of the unit.



655 Hope is wedged into the urban fabric of Downtown Los Angeles. The downside is that the view from many of the lower floors are obscured by neighboring buildings. Some units on the upper floors, however, like 1502 (above) do have quite spectacular views. Those interested in the purchasing units should not simply choose based on floorplan but should check out the light/view for individual units.

Kennedy Wilson, which hosted the Market Lofts auction in November 2009, will be conducting the 655 Hope auction. This traditional auction format in which one unit is sold at a time leads to rapid-fire bidding (2 - 3 minutes per unit) and buyers must be deliberate and quick-paddled to get in on the action.

655 Hope Street
Los Angeles, California
Auction Website

El Dorado Lofts in Downtown Los Angeles: 1914 Hotel Conversion Brings Craftsman-Era Magnificence to Old Bank District

El Dorado Lofts at 416 S Springs Street in Downtown Los Angeles will not be auctioning 44 of its 65 units at an event on April 25, 2010. Update 4/16/10: The auction has been canceled because of delays in the building obtaining a Certificate of Occupancy (per developer). The units will be sold through a traditional sales office, with prices starting at $280,000 for a 1 br-1 ba (848 sq ft) and $386,000 for a 2 br - 2 ba (1,176 sq ft).

Floorplans of this 12-story building range in size from 848 sq ft to 1,394 sq ft. HOA range from $456 - $622. Parking is not included with the purchase, but the building has a perpetual and exclusive parking easement with Bankhouse Parking Structure on 4th Street.

[from Los Angeles Historian Blog]

Located in the Old Bank District next to the Rowan Lofts and future Spring Street Park, the refurbished El Dorado Lofts hark back to a bygone era when this neighborhood was known as "Wall Street of the West".

The developer is Goodwin Gaw, responsible for the Rowan Lofts, the Hollywood Roosevelt Hotel, and in a large part revitalizing residential Downtown.

The grand lobby was a bustling hub for businessmen and frequent travelers, and a "much-proclaimed venue for local social events."

The El Dorado is certain to be full of life nearly a century later and a great addition to emerging Downtown scene. Be sure to grab a Burgundy or Malbec at the Must Wine Bar and small plates at the innvotiave eatery The Gorbals just down the block.

Dozens of tiles from the Pasadena-based Batchelder Tile Factory, harbingers in the Arts and Crafts movement, cover the lobby walls.

There are a couple of negatives -- the ceiling height feels low in some of the units and some of the new, exterior balconies feel a little rickety.

Regardless, the El Dorado's features are extensive and impressive:

• Bosch appliances with stainless steel finishes
• Granite countertops
• Grohe kitchen faucet
• Double-compartment Franke sinks
• Snaidero Italian bathroom cabinets
• Soaking tubs
• Toto bath faucet and shower sets

Clean, clean, clean ... and plenty of space to spread out in the 2 bedroom units.

And this view is amaze-balls!


El Dorado Lofts
416 S. Spring Street
Los Angeles, California 90013
www.eldoradolofts.com

3 Ways To Make Your Home More Green For Less Than $200; CFLs, LEDs Lead Way To Energy Efficiency

The problem with many, excellent green products for the home (e.g., rooftop wind turbine, solar panels) is the high initial investment and the long payback period.

There are some conservation measures that homeowners can take that cost less than $200 and realize immediate benefits:

1. Lighting: CFLs (compact fluorescent light bulbs) and LEDs (light-emitting diode bulbs) are more energy efficient that regular incandescent lamps and can significantly reduce cooling costs. CFLs (seen above) are more widespread. LED bulbs may be up to 40 times more expensive than incandescent bulbs, but use only one-fifth the energy and last up to ten times as long.
2. Toilet Retrofitting: Kits which provide single flush and dual flush capabilities to tanks cost as little as $30.
3. Ceiling Insulation: A major source of energy loss in a home is an uninsulated attic access door. A $200 investment in a new pulldown system can significantly lower your heating and cooling bill.

[LA Times]

Beverly Center - Miracle Mile: "Flats" Attracts Buyers With Central Locale Though 2009 Median Price off 22% From Peak

The Beverly Center - Miracle Mile area continues to be a magnet for buyers because the location is central -- just east of the Westside, but within a reasonable driving distance of everywhere from Downtown to the 10 and 101 freeways.

Lots range in size from about 6,000 - 7,500 sq ft (with some lots up to 10,000 sq ft). The highest priced sales are typically refurbished-expanded-rebuilt Spanish style homes with pools, that average about $550/sq ft.

Since the peak of the market in 2007, the median sale price in the Beverly Center - Miracle Mile declined 22% to $875,000 in 2009.

Some highlighted sales of 2009 include the following:

6430 Colgate Avenue is the prime example of what attracts buyers in the Beverly Center - Miracle Mile area. Newly constructed, with pool, this home has 3,528 sq ft of living area and was the highest priced sale of 2009 at $2,365,000.
The Spanish style never seems to go out of fashion. This home at 365 N Edinburgh Avenue sold for $1,975,000. It has 3,790 sq ft of living area and of course, a pool.

119 S Laurel Avenue has 5 bedrooms, 4.5 baths, and a pool (duh!), and sold for $1,950,000.
Are you seeing a pattern? Yes, more nouveau, Spanish on a large scale. 6376 Lindenhurst Avenue has 3,592 sq ft of living area and sold for $1,900,000.

It would be hard to address 2009 sales without mentioning a foreclosure. This 1,123 sq ft fixer on 1136 S Lucerne Avenue sold for a cool $335,000.

Los Angeles Driving 101: Parking Permitted at Failed or Dead Meters

We spend a lot of time driving -- and parking -- in the City of Angels. And there is nothing more welcome than the sight of a vacant spot right by your destination ... until you spot the dreaded "dEAd" or "FAIL" digital read-out, leading you to another round of circling the block -- or worse -- putting the vehicle in a $20 lot.

We've gotten some clarification on these broken meters -- you can actually park in these spots!

Amir Sedadi, assistant general manager of the Transportation Department, assured members that "the policy of the Department of Transportation is not to issue any citations to broken meters." But in some instances, Sedadi said, broken meters can inexplicably snap back into operation, which could be why some Angelenos have been ticketed. [LA Times]

According to the article, 10 - 12% of all city meters are broken at any given time. (Somewhat akin to the city's unemployment level.) Conscientious citizens can report failed meters online on the city's website or by calling the city's hotline at (877) 215-3958.

Los Angeles Apartment Investor: "This Is the Best Market Since 1994"; Falling Values Galvanize Buyer Interest, Despite Declining Rents

Buy low, sell high, is a principle of such simplicity that even a novice investor can use it as a guiding mantra.

A couple of years into the worst real estate market in decades, prices have come down and the Los Angeles Times scribed an article, "Braving a dismal apartment market," highlighting how apartment investors are seeking to get into the market while prices are low.

In our opinion, this is indeed an excellent time to be looking for investment opportunities. The financial shakedown of late has had several dramatic effects on the local multifamily market:

1. Rents have declined;
   
2. Vacancies have risen;
   
3. Prices have declined -- but a lot less than many had hoped, and few "firesale" opportunities have been created;
   
4. The majority of owners remain well-capitalized and well-equipped to ride out the current economic turbulence;
5. The allure of real estate as an asset class -- and its traditional role as a hedge against inflation -- is rising;
   
6. Investors are many and good deals are few, and buyers are still finding that the Los Angeles apartment market has high barriers to entry.

We see the greatest opportunity in the 2 - 15 unit market. Owners of buildings with 16 or more units (which require an on-site manager) tend to be wealthy individuals with no intention to sell in a downmarket, fiscally-stable syndicates, or, for the larger properties, deep-pocketed institutional investors (insurance companies, pension funds, and the like).

In the 2 - 15 unit category, there are some over-leveraged buyers who purchased their properties at the peak of the market and are forced to sell because of declining fundamentals. Others are family-type investors who are selling because of death, divorce, relocation, etc.

The Los Angeles Times provides investors with some tips, which include:

1. Familiarize yourself with a particular area;
2. Do not overpay for a property;
3. Keep cash reserves;
4. Make sure the building is up to code and check public records for any citations;
5. Don't wait for ideal market conditions;

And we'd like to add a few of our own:

1. Don't fall in love with a building - if you can't make a deal that is justified by current (not projected) cash flows, walk away;
2. Cap rates may be 8% or more in other areas of the country, but it may be a long, long time (never?!?) before Los Angeles sees cap rates in that range. A cap rate of 6% in central Los Angeles is probably a very good deal.
3. Ignore published cap rates for properties. They are based on the owner's profile -- and the owner's property tax may be a fraction of what a new buyer will pay. A buyer needs to calculate what the cap rate is for their income and operating expenses.
   
4. Plan on owning the building for the "long haul" (5 years or more) unless the building is a value-added opportunity (e.g., distressed, vacant property).
   
5. Use your local knowledge to buy in an area with solid, future rental potential (is the area becoming a population center? subject to overbuilding? near future transit hubs? near the urban core?);
6. Get to know local rent regulation ordinances. The cities of Los Angeles, West Hollywood, Beverly Hills, and Santa Monica (among others) all have differing (and sometimes stringent) rent regulations;
7. Brush up on your accounting, or even better, learn to create your own investment pro-formas. Become an expert on the tax benefits of owning income property. Become proficient in analyzing and managing operating expenses -- these will be your key to earning profits.
8. Anticipate how you will manage the building. Will you hand over ownership to a management company? If you are going to self-manage, how will you lease the units? Manage tenants? Handle emergencies?
9. Find a broker, lender and insurance company that you can trust. These parties will become your partners in your financial success.

With low interest rates and investor sentiment still tempered by the recent bruising financial climate, buyers now have an excellent opportunity to research and plot their investment strategy. We are brokers specializing in the Los Angeles apartment market, so please feel free to contact us with any questions or queries you might have.

855 Croft Avenue: Impeccably-Styled City Flats in the Heart of West Hollywood

855 Croft Avenue, a new 33-unit complex in the West Hollywood area, offers buyers a winning combination of practical floorplans, top finishes, abundant storage, and a central location between Santa Monica Boulevard and Melrose Avenue that can't be beat.

All units include 2 bedrooms and 2.5 baths on a single level, with balcony. The 29 units on the lower three floors of this four-story complex range from $695,000 - $845,000 for units ranging from 1,385 sq ft - 1,469 sq ft. Four penthouses with extra-large terraces are priced at $1,295,000 - $1,495,000. HOA are $367 - $428/month. Units come with 2 tandem parking spots.

Unlike other buildings, where developers have tried to carve up the typical cubic structure of a building mass into multi-level, unique floorplans, these developers have opted to make the layouts of all non-penthouse units uniform and single level. The kitchen, near the entryway, comes with attractive zebra-striped cabinets, glass-tile backsplash, and lots of high-end fixtures.

The kitchen includes a Bertazzoni Range, Bosch refrigerator and dishwasher, and a Sharp microwave. Counters are Caesarstone.

Flooring options include a chocolate dark brown or a light oaky color. The kitchen-living area is open, with plenty of space to hang out.

Off the living area and one bedroom is a terrace (110 sq ft on the second and third floors).

The two baths are decked out with quality finishes that include Lacava sinks and Villeroy & Boch toilets. One bath includes a shower only.

The master bath includes tub, shower and dual sinks.

The first floor units each have an extra-large outdoor area that ranges from 638 - 978 sq ft.



The penthouses offer terraces that range in size from 800 - 1556 sq ft. Enjoy a walk-through of Penthouse #4.

West Hollywood currently offers a wide array of new construction units. 855 Croft Avenue is a great addition to this mix, distinguishing itself by keeping it elegant and simple, and offering buyers exactly what they want: a big, comfortable place to call home.

855 Croft Avenue
Los Angeles, CA 90069

Sold by Deasy/Penner & Partners.

SoHo House West Hollywood to Open Doors March 8 - Sophisticated Digs Brings Old Hollywood and English Gentleman's Club Just in Time for Oscar Season

At long last, the wait is nearly over. At 9200 Sunset Boulevard, at the border of Beverly Hills and West Hollywood, the Los Angeles outpost of SoHo House is finally emerging from a cloak of cranes and construction and will open its doors March 8, just in time for Oscar.

The Waldo Fernandez-designed 20,000 sq ft penthouse at Luckman Plaza will include 360 degree views, a bar, a rooftop garden lined with olive trees, and beautiful scenery in and out.
In case you want to keep tabs on the activity at SoHo House you might consider some very fine real estate in the Doheny Estates - Bird Streets neighborhoods, such as 1260 St Ives Place, pictured above. This 5 bedroom, 8 bath, 8,644 sq ft Mediterranean-style home is located at the end of a cul-de-sac and offers privacy, comfort and lots of sky.

The views are panoramic from Downtown to the ocean. SoHo House and the Sierra Towers are right at your feet. The house was just listed this week at $7,895,000.
Just down the road, you'll also find 9066 St Ives Drive, a jazzy contemporary home with 3 bedrooms, 5.5 baths, and lots of living area on multiple levels. The house has been on the market since last June and its price has been drastically lowered to $6,595,000.

Another prime home is close enough to SoHo House so you can invite a few friends over for a swim after hours. 1424 Tanager Way was listed last month at $8,695,000. With 3 bedrooms, 4 baths, an 80' infinity pool and a 1,000 sq ft master suite, you'll find plenty of comfort and luxury to wile away the hours.

SoHo House West Hollywood -- opening March 8, 2010

West Hollywood Home Sales Up 300% in Jan - Feb 2010, Market In Dramatic Recovery; Four Sales Top $1,800,000

What a difference a year makes. In January - February 2009, in the thick of the financial crisis, only four homes sold in West Hollywood. In 2010, sixteen homes sold during the first two months of the year, with four closing at $1,800,000 and above.

Buyers have clearly dusted off their hesitations and are plunging into the West Hollywood market, purchasing some beautiful, polished gems.
407 Westbourne Drive, new construction with 3 bedrooms, 3.5 baths, and a pool on a 4,796 lot sold for $2,150,000, below its $2,349,000 asking price, after 103 days on the market.
912 West Knoll Drive, with 3 bedrooms, 3 baths, and 2,583 sq ft of living area (and pool) on a 6,240 sq ft lot, sold for $1,900,000, below its $2,195,000 asking price in 182 days.
410 N La Jolla Avenue, with 3 bedrooms, 3 baths, 2,400 sq ft of living area on a 6,550 sq ft lot (and pool), sold for $1,850,000, $100,000 below its asking price, after a brief 21 days on the market.
One of the largest properties for sale in recent memory closed at $1,800,000 after 189 days on the market, well below its original $2,350,000 asking price. This bespoke architectural property boasts 3,800 sq ft of living area (and pool) on a 13,499 sq ft lot. Buyers are willing to pay a premium for updated, rehabbed properties (first three examples above) and discount unusual and unique properties that will require considerable work to upgrade to contemporary taste.

Only two of the sixteen properties that sold were distressed properties. 727 N Sierra Bonita Avenue, a foreclosure with 3 bedrooms, 3 baths and 2,903 sq ft of living area on a 6,500 sq ft lot sold for $860,000 -- well above its $784,000 asking price -- after 31 days on the market. The other distressed property was a short sale (also on Sierra Bonita) that closed at $701,320.

An excellent fixer opportunity at 606 N Croft Avenue sold for $750,000 just above its $749,000 asking price, after 12 days on the market. This home has 4 bedrooms, 3 baths and 2,153 sq ft of living area on a 6,494 sq ft lot. Look for it to be transformed into a polished gem some time soon.