Adner Realty Group is pleased to present Episode 3 of our series, "Ten Million Dollar Listing." Come ride with Jamie Adner and Luke Jones as we explore three extraordinary Beverly Hills estates priced over $10 million dollars. First up, "Mediterranean Estate", with its exquisite grounds, then "Timeless Classic", a 1983 Hal Levitt architectural wonder, and finally "Modern Splendor", ultra-cool, with some of the best views in town. Enjoy the sights!
Friday, September 30, 2011
Tuesday, September 27, 2011
2011 Median Home Prices: Lower End Trends Up; Higher End Trends Down; Beverly Center - Miracle Mile +7%, Los Feliz + 5%, Santa Monica -13%, Pacific Palisades - 15%
What's happening in the market? We took a look at ten neighborhoods to see how median price in 2011 compares to the median price in 2010.
|(click on image to enlarge)|
- Silver Lake / Echo Park + 4.4%
- Los Feliz + 5.2%
- Hancock Park - Wilshire 0.0%
- Beverly Center - Miracle Mile + 6.9%
- Sunset Strip - Hollywood Hills West + 0.6%
|(click on image to enlarge)|
- Venice -3.2%
- Santa Monica -12.6%
- Pacific Palisades -16.1%
- Brentwood + 5.1%
- Beverly Hillls -8.8%
But what does this mean? We can draw the following five conclusions:
- The composition of homes selling is changing. Distressed properties (bank-owned foreclosures and short sales) are a greater percentage of the market and, selling at a discount, are driving down the median price.
- Median price is up in lower-priced neighborhoods, median price is down in higher-priced neighborhoods. The high-end market is still deflating as multi-million dollar properties financed with little downpayment and exotic loans (option ARM anyone?) are finally passing through the short sale / foreclosure process.
- Hot markets: Beverly Center-Miracle Mile, Los Feliz, Silver Lake - Echo Park. These lower-priced neighborhoods are trending up.
- Not so hot markets: Pacific Palisades, Santa Monica and Beverly Hills are "trending down." There is undoubtedly downward pricing pressure as more owners lose their high-end homes. However, 37 homes have sold for more than $5 million so far this year. Hardly markets in pain.
Tuesday, September 20, 2011
Concerto in Downtown Los Angeles Will Be Leased in Fall 2011; Complex Has Identity Crisis, Loses Its Moniker and Becomes Apex
|Concerto (now Apex) with Rental Building in Rear, Condo Building in Front|
|View down Figueroa from Corner Unit|
|Pool / Garden Area Under Construction|
Alas, Concerto-watchers, time to turn your sights to Apex, and lease the unit that you dreamed of owning.
Monday, September 19, 2011
Silver Lake / Echo Park Homes up 4% in 2011. Sure, the Market's a Mess, but with 4% Interest Rates, Buyers and Sellers Should Have Confidence to "Get Off the Dime"
We've always loved the the Silver Lake / Echo Park neighborhood of Los Angeles, partly because it's priced at a discount to such other "Westside"-adjacent areas as Los Feliz, Hancock Park-Wilshire, and Beverly Center-Miracle Mile, and is just as nice (if not more scenic.)
|Echo Park Hills|
And how is the Silver Lake / Echo Park "entry market" faring? Quite well. Year-to-date, the median price for a single family home in Silver Lake / Echo Park is $570,000, up 4% over the 2010 median sale price of $550,000. Despite the negative sentiment about the "housing market", the median price in Silver Lake / Echo Park is increasing.
|2011 Median Sale Price up 4%|
The message here is:
- Real estate markets are hyperlocal, and opportunities exist in "neighborhoods", not in the market at large;
- The Silver Lake / Echo Park market "bottomed out" in 2010;
- Owners in Silver Lake / Echo Park looking to "move up" should leverage this market's strength, and capitalize in weakness in some higher-end markets;
- Buyers should take advantage of ultra-low 4% interest rates and jump in to this appreciating market before they are "priced out".
Sunday, September 11, 2011
Downtown Los Angeles in the 1940's -- B-Roll Footage From Film Noir Era Shows Bunker Hill and $2.50 per Day Car Rentals
It wasn't accidental that the film industry emerged in Southern California. Producers and directors flocked to the city from the east coast for the natural light and the myriad of landscapes that could adapt to any scenario. But there is also a je ne sais quoi, an indescribable attribute that has made Los Angeles iconic in the realm of images. Like an improbably chiseled actress who enchants the camera from any angle, Los Angeles loves being photographed.
Nothing captures the Los Angeles of yore better than Film Noir, with its stark, black and white images in movies such as Mildred Pierce, Double Indemnity, and The Big Sleep. In this "B-roll" footage (that would be rear-projected behind actors in driving scenes), you witness Los Angeles of this era, unedited. We particularly liked seeing the Zelda Apartments (1:52), two blonde girls crossing the street (2:22), an old-school stop light (3:15), and a cool, airstream moderne bus (3:51). The biggest surprise is that parking that was 50 cents per day then can still be had for $3 or $5 per day.
This Victorian-era Los Angeles -- that looks remarkably like San Francisco -- exists no more since Bunker Hill and the Chavez Ravine were razed for the construction of Downtown west. The writers John Fante in "Ask The Dust" and Charles Bukowski in "Factotum" portray the grit of that time and place. Here your eyes can feast on images from a very photogenic time gone by.
Courtesy of Curbed LA, Blogdowntown and The Atlantic
Thursday, September 8, 2011
Big Ticket Los Angeles Multifamily Sales Demonstrate LA Apartment Fundamentals Are Shining Brighter than Bonds and Blue Chips (but Maybe Not Gold)
In the past three months, some big-ticket apartment building sales in the Beverly Hills Adjacent area, West Hollywood, Hollywood and Koreatown have supported the idea that for investors, Los Angeles apartments are looking like a safe bet.
Whether a $4 million building purchased by a career apartment investor, or a $40 million apartment block bought by an institutional investor, apartment buildings are selling, with particular interest in those which are not rent controlled.
Financial information is not available for most of these sales, so the only measure of "trading values" is cost per unit ("door"), a vague metric, at best. Our evaluaton is that most of these building are selling in the mid 6% cap range.
1745 and 1750 N Wilcox Avenue, Los Angeles 90038 -- Hollywood
You can't find better located buildings than these two non-rent controlled buildings in the center of Hollywood that sold as a package for $40.0 million and $17.1 million, respectively.
|1745 Wilcox Avenue, Hollywood|
|1750 Wilcox Avenue, Hollywood|
1342 N Highland Avenue, Los Angeles 90028 -- Hollywood
Anchoring the other end of Hollywood, 1342 N Highland Avenue is a 15 unit non-rent controlled building located between Sunset and Fountain and adjacent to West Hollywood that sold for $5,250,000 or $350,000/door.
|1342 N Highland Avenue, Hollywood|
817 and 825 Wilcox Avenue, Los Angeles 90038 -- Hollywood
Located in the Hollywood Media District south of Santa Monica Boulevard, 817 and 825 Wilcox Avenue, a pair of non-rent controlled buildings built in 2004 and 2002, respectively, sold for $4,420,000 and $4,675,000.
|817 Wilcox Avenue|
|825 Wilcox Avenue|
321 S Berendo Street, Los Angeles 90020 -- Koreatown
Moving east into Koreatown, 321 S Berendo Street with 23 non-rent controlled units sold for $3,600,000 or $157,000/door. Some financing information is available for this 1991 building located near 3rd and Wilshire, and the cap rate at sale price is in the mid-6% range.
|321 S Berendo Street, Koreatown|
The West Hollywood sub-market, like other incoporated cities such as Beverly Hills and Santa Monica, has its own market forces, and cap rates here are lower here than in adjacent areas of Hollywood.
|526 N Orlando Avenue, West Hollywood|
467 S Arnaz Drive, Los Angeles 9048 -- Beverly Hills Adjacent
We end with 467 S Arnaz Drive, a 100-unit building one block from Beverly Hills that sold for $39,350,000, or $393,500/door. This 1980 building commanded a super-premium because of its location next to Beverly Hills and because it is not subject to Los Angeles Rent Stabilization Ordinance.
|467 S Arnaz Drive, Beverly Hills|
The nation’s apartment market continues to beat expectations as it speeds along to a full-scale recovery.Over at Multi-Housing News Online, an article, "Amid Economic Gloom, Investors Keen For Multi-Housing Projects", the author writes:
Fannie Mae ... reported this week that U.S. multifamily investment sales have spiked thus far during 2011, reaching $13.9 billion during the second quarter of 2011, or more than half again as much as the first quarter 2011 total of $9 billion. The second quarter sales figure is also a whopping 132 percent increase compared with the same quarter in 2010.In terms of sales, Los Angeles is the #2 market, behind Manhattan, and recorded over $1 billion in apartment sales during the first half of 2011.
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