Amid Real Estate Boom, Los Angeles Gets Latest Crop of Luxury Condos
Small lots and palatial penthouses are among the offerings, but some experts wonder whether oversupply is looming
The overall Los Angeles real estate market remains busy and robust―with nine-digit homes continuing to make headlines―but there are some concerns about oversaturation down the road, especially in Downtown L.A.
“Our market is really strong, especially on the luxury front, both single-family and condo, and both absorption rates and price per square foot,” said Hana Cha, managing director of new development for Compass California.
The number of sales in the greater Los Angeles area reached a record high during the second quarter of 2017 as inventory declined and overall price trend indicators moved higher, according to Douglas Elliman Real Estate’s 2017 Greater Los Angeles and L.A. Submarkets Market Report, which was released in late July.
The median sales price increased year over year for the 20th consecutive quarter, and luxury market prices increased as inventory fell sharply, according to the report. The median sales price increased 2.2% to $1.4 million in the second quarter.
“Generally speaking, we have more new development and new construction in the pipeline than we have had in over a decade,” Ms. Cha said.
“The concern is how much inventory is coming to market,” she said. “There is too much inventory at the higher end of the market. How is that sustainable?”
Ms. Cha also worries about coming higher prices in the luxury condo market.
“In downtown, the average blended price, across the board, is between $700 and $750 a square foot,” she said. Some of the new luxury condos coming on the market in 2018 and 2019 will have prices “north of $2,000 a square foot. Who is actually going to buy this stuff, especially if there are 500 of them, or 1,000?”
Joe Reichling of the Bryant Reichling Team of Sotheby’s International Realty, said he is seeing an influx of buyers from San Francisco and New York.
“Two years ago we had a lot of Chinese coming in,” he said. “Now it’s New Yorkers–I call it the creative class that is fleeing New York because of high prices and density issues and setting up shop in L.A. It’s mostly four groups— media, tech, fashion and entertainment.”
Many of these new buyers moving to L.A. are looking for well-designed new construction, Mr. Reichling said, and they are willing to look across the city for the right home. “The area won’t matter that much―they are less neighborhood focused. They are very design-forward as to what type of building they want to live in.”
Another big trend in the city now is small-lot conversion and construction, with multiple individual houses going up on lots where one single-family home once stood. “This has been a huge, huge trend in Hollywood, in L.A.,” Mr. Reichling said. “It depends on the neighborhood obviously, but people are paying $1.1 million to $1.3 million regularly” for these small lot homes, which are generally two to four bedrooms.
Here are some new developments to look for in the next few months:
1. 1345 Havenhurst, 1345 Havenhurst Drive, West Hollywood
Nestled in a quiet residential setting one block from Sunset Strip, 1345 Havenhurst is a new luxury condominium on a tree-lined street between Sunset Boulevard and Fountain Avenue and adjacent to a new urban park within the West Hollywood neighborhood. Construction, which began three years ago, is expected to wrap up in September with a sales rollout in mid-September.
Residents can select from a collection of versatile floor plans. Multi-story townhomes are intelligently designed to enhance height, light and views with soaring ceilings and floor-to-ceiling windows. Open loft floor plans offer an uninterrupted flow of space between the kitchen and living areas and maximize the access to natural light and cross ventilation.
Garden Terrace homes feature private balconies, either overlooking the neighboring tree-lined streets or located next to the building’s living green wall. Townhomes in the Penthouse Collection boast rooftop terraces that capture 360-degree views. Certified as a Green Building by the city of West Hollywood, 1345 Havenhurst features resource-efficient design and materials.
Number of units: 16 townhomes
Price range: Not yet released; projected to start around $1,375,000 and go up to $2,500,000
Developer/architect: 1345 Havenhurst LLC/Kanner Architects
Apartment sizes: 13 two-bedroom homes and three three-bedroom townhouses in the Penthouse Collection that range in size from 1,490 to 1,963 square feet Amenities: Rooftop decks and garden terraces
Website: 1345havenhurst.com
2. Ridge Silver Lake, 2211 Glendale Blvd., Silver Lake
Ridge Silver Lake brings 10 modern and luxurious homes to Los Angeles’s vibrant Silver Lake neighborhood. The project is nearing completion and soon will launch Home 10, which the developer, Barth Partners, is calling the project’s crown jewel.The floor plans feature rooftop decks, dining terraces, side yards and balconies. Select floor plans feature dens/offices, media rooms, oversized master bedrooms with spacious walk in closets, and wet bars.
A unique architectural statement of the project is the white cement board siding, which alludes to a modern Scandinavian farmhouse. Corner windows and sliding walls of glass in the living and dining rooms let in views of downtown Los Angeles and beyond.
Number of units: 10 single-family homes built under Los Angeles’s Small Lot Ordinance
Price range: From $1.085 million to $1.599 million. Home 10 will be priced between $1.5 million and $1.6 million, vying to be the most expensive small lot home on the east side of the city
Developer/architect: Barth Partners
Sizes: Two- and three-bedroom floor plans ranging from 1,630 to 3,000 square feet
Amenities: Oversized two-car garages, and views of the Silver Lake Reservoir, the Downtown Los Angeles skyline and Verdugo Mountains
Website: ridgesilverlake.com
3. Cavalleri, 6487 Cavalleri Road., Malibu
The newest eco-friendly and sustainable luxury residential condominium in Malibu is slated for completion this fall. It was designed to make smaller, more cost-effective units available to buyers in one of Los Angeles’s most desirable beachfront communities.
The Point Dume property is just minutes away from Malibu’s best shopping, dining, surfing and hiking spots. The new model residence includes craft finishes, hardwood flooring, a spa-quality bathroom, gourmet kitchen, and an open, airy floor plan. Located on a 10-acre gated reserve that’s just a short ride from Zuma Beach, Cavalleri comprises 68 residences in a Spanish Revival-style designed to balance functionality with stylish Southern California interiors.
Number of units: 68
Price range: Starting just over $1 million, with some units above $2 million
Developer/architect: Pacific Eagle Holdings Corporation/Edmonds + Lee
Sizes: 40 three-bedroom, three-bathroom units; 28 two-bedroom, two-bath condos; and 24 top-floor penthouses. The units range from 1,577 to 2,232 square feet.
Amenities: 52-foot swimming pool with cabanas, outdoor dining beneath flowering trees and by an outdoor fireplace, state-of-the-art gym and on-site tennis and bocce ball courts, yoga and meditation gardens, citrus groves, and walking trails and dog paths with ocean breezes.
Website: cavallerimalibu.com
4. Row 2, 1410 N. Stanley Ave., Hollywood
Coming this fall in the heart of Hollywood is Row 2, which will feature eight three-story single-family residences in a sleek, contemporary style. Row 2 is adjacent to the highly desirable neighborhood of Spaulding Square and close to Hollywood’s vibrant restaurants and nightlife.
Interior finishes include engineered oak hardwood flooring, designer-selected tile, quartz countertops, and a stainless steel appliance package featuring Bertazzoni, Thermador and Bosch.
Number of units: Eight single-family homes built under Los Angeles’s Small Lot Ordinance
Price range: From $1.4 million
Developer/architect: Intracorp/Lim Chang Rohling & Associates
Sizes: Three-bedroom, three-and-a-half bathroom floor plans ranging from 1,911 to 1,952 square feet
Amenities: Rooftop decks with fireplaces and views of Downtown Los Angeles, Hollywood and the Hollywood Hills; attached two-car direct-entry garages
Website: row2la.com
5. Pacific Star, 321-327 South Elm Drive, Beverly Hills
In the heart of Beverly Hills, this new development is in a quiet neighborhood setting, yet within walking distance of everything the upscale city has to offer. It is Beverly Hills' first new multi-family development available for ownership south of Wilshire Boulevard since 2009.
Pacific Star will be a mix of condominiums, townhomes and penthouses in a contemporary architectural style with open-floor plans. It will feature lots of private outdoor space for residents along with a long list of amenities, including heated bathroom floors and solar panels for common area energy efficiency.
The 18 two-level townhomes will feature two- and three-bedroom units in a variety of floor plans. The 10 condos have two- and three-bedroom floor plans. There are two penthouses, three bedrooms each.
The homes will feature expansive views of Hollywood Hills, Century City, Beverly Hills and Downtown Los Angeles.
Sales are expected to launch in early fall and will be handled by Lisa Rubel and Kim Hartley of Compass.
Number of units: 30
Price range: Pricing hasn’t been released yet but is expected to start at $2 million
Developer/architect: K Pacific Investments/Gabbay Architects and Deb Longua-Zamero (interior architectural designer)
Sizes: The two-level townhomes range from 1,500 to 1,950 square feet, with more than 200 square feet of outdoor terraces. The condos range from 1,500 to 1,700 square feet, with large terraces reaching up to 500 square feet. The penthouses have more than 2,200 square feet of interior space and 1,000 square feet of terrace space
Amenities: Concierge; secured, side-by-side subterranean parking with electric car charging; induction chef’s kitchen with beverage and wine refrigerators; radiant heat flooring; Italian cabinetry; USB outlets in every room; European white oak flooring; direct elevator access; individual storage units; and a limestone grand lobby
Website: pacificstarbh.com
6. Fuller 4, 1339 N. Fuller Ave., Hollywood
Oakmont Capital is bringing a small-lot project called Fuller 4 to market this fall. It’s one of three small-lot projects they have coming on the market in Hollywood. This boutique development uses steel, glass and wood to create a bold architectural statement.
Number of units: Four single-family homes built under Los Angeles’s Small Lot Ordinance
Price range: From $1.6 million
Developer/architect: Oakmont Capital/Telemachus Studio
Sizes: Two- and three-bedroom floor plans from 2,502 to 2,787 square feet
Amenities: Rooftop decks, floating steel staircases, exposed steel beams, double height living rooms, private front and rear patios, and stainless-steel appliance suite from Bosch.
Website: BryantReichling.com