The ongoing resurgence of Downtown Los Angeles remains at the epicenter of any story about real estate development in the West Coast metropolis.
"The story of the year–really the last few years–has been the downtown market," said UCLA Ziman Center for Real Estate Professor Paul Habibi. "There is north of 10,000 units being developed or on the boards."
It’s easier to get new projects off the ground in the downtown area, he said, because there is less neighborhood resistance.
Downtown remains appealing to developers because "there is still an undersupply of housing units relative to the number of jobs there," Mr. Habibi said.
Not too long ago, Downtown L.A. was primarily a financial district that largely emptied out at night. First, rental apartments came into the area, and now developers are bringing hundreds of new luxury condos to market. Many are going for more than $1,000 a square foot.
In the overall luxury condo market across L.A., the median sales price was $2,450,389 for the first quarter of this year, up nearly 9% from a year ago, according to a report from appraisal firm Miller Samuel. In newly developed condos, the median sales price was $2,662,500, up 21% from the first quarter of 2016.
Because of L.A.’s notorious traffic congestion, the notion of living far from where you work isn’t appealing.
Still, though, Nick Segal, CEO of Partners Trust, worries about a glut of new downtown projects. "There’s too much product," he said. "There is a lot of inventory. I just don’t know if there is a demand to consume it all."
In general, Mr. Segal said he is seeing more choosiness from buyers in the city. "People are looking for pinpoint locations. They are zeroing down to certain locations, even specific blocks that they want."
In other areas of L.A., the Westside communities of Playa Vista and Venice "have experienced a ton of new development," Mr. Habibi said. "Prices have skyrocketed in that area."
Despite the announcement of several new L.A. condo projects in the last couple of years, "this is a single-family home town," said Guy Penini, principal of BLDG Partners. "This is a city that loves its single-family homes–but it is also a city."
That will likely mean more small-scale condo-style developments in residential neighborhoods dominated by single-family houses. In leafy Hancock Park, Mr. Penini is launching a new project called The Sevens that will feature seven three-story detached single-family homes built to look like row houses and blend in with the historic neighborhood.
Here’s what’s coming up in the next few months:
AIRE Santa Monica, 1433 14th St., Santa Monica
With Silicon Beach’s techboom and not enough residential condominiums in development to meet the influx of new residents, this new boutique development offers a high-end residential option for these new residents. The open-concept design envisioned by JFAK Architects accentuates light and space and offers a strong connection between indoor and outdoor living.
Comprised of three residential buildings, AIRE’s courtyard level features nine single-story garden flats with outdoor living areas that coordinate with the central communal courtyard. There are also nine two-level townhomes that feature double-height ceilings and breezy interiors.
All of the homes include generous outdoor living spaces that range up to 800 square feet. The development is expected to be finished this summer.
Number of units: 19 Price range: Starting at $900,000 for the garden flats to upwards of $1.5 million for the townhomes Developer/architect: Palisades/JFAK Sizes: The garden flats range from 1,012 to 1,019 square feet with two bedrooms and two bathrooms. The two-level townhomes range from 1,517 to 1,605 square feet with three bedrooms and three bathrooms. One garden townhome has 1,832 square feet with three bedrooms and four bathrooms across three levels. Amenities: The property features a spacious communal courtyard with casual lounging areas, water features and a green living wall. Website: airesantamonica.com
The Liddel, 10777 Wilshire Blvd., Wilshire Corridor
The Liddel is the newest addition to the Wilshire Corridor. It will feature a private cobblestone motor court and a boutique collection of 56 residences. The residences are designed to provide flexible floor plans with large living spaces.
The sixth floor features eight residences known as The Terraces. One floor above, on level seven, there will be eight penthouse residences, and a few units will have private rooftop terraces with sweeping views of the Wilshire Corridor and the city beyond.
The modern, shared-amenity spaces are envisioned by renowned interior architect Jamie Bush. Gathering spaces will feature vintage, contemporary and custom-designed pieces as well as a dynamic mix of woods, metals and luxurious fabrics.
Sales are expected to launch this summer, with a fall completion date for the development.
Number of units: 56 Price range: Starting at upper $900,000s and ranging up to $4 million Developer/architect: Palisades/Jamie Bush (Lead Designer) Sizes: The one- to three-bedroom residences will have up to 2,700 square feet of open-concept living. The one-bedroom, one-bath units with a den will have up to 1,347 square feet, and two-bedroom residences featuring about 1,520 square feet of living space. The penthouses will have two-bedroom-plus-den and three-bedroom floor plans up to 2,700 square feet. Amenities: The Liddel’s ground-floor amenities include an entry salon connected to a spacious outdoor terrace; a Club Lounge with fireplace, bar and full sliding glass door that opens to garden space; a wine room for intimate private tastings and events as well as a nearby private dining room and catering kitchen; a den for casual evenings; a fully equipped fitness studio; full-time valet; and 24-hour concierge service. A rooftop terrace unfolds to a gathering space with fireplace, lounge areas, barbecues and panoramic city views. Website: theliddel.com
The Collection, 12700 W. Millennium Drive, Playa Vista
In July, Playa Vista, a master-planned community combining residences, creative offices, retail and a network of parks and open space on the Westside of Los Angeles, will debut The Collection, one of its final neighborhoods of detached homes in the heart of Silicon Beach.
The Collection at Playa Vista by Brookfield Residential comprises 66 three-level detached residences.
Each home has a private elevator, airy floor plans, gourmet kitchens and expanded master suites with spa retreats and dressing rooms, and spacious decks.
The homes are within walking distance of offices within The Campus at Playa Vista, which houses such tech companies as IMAX, Google, YouTube Space L.A., Yahoo, and ICANN, along with media firms that include Group M, Fullscreen, and 72 and Sunny. Google is building its Los Angeles headquarters on 12 acres on the campus.
Sales start in July with a completion date of mid-2018. It will be completed in phases.
Number of units: 66 Price range: Starting from the low $2 million range up to nearly $3 million Developer/architect: Brookfield Residential/Robert Hidey Architects, Bassenian Lagoni Architects Sizes: Three- to five-bedroom homes with square footage ranging from 2,624 to 3,666 Amenities: Runway retail and entertainment center, 29 parks, and The Resort private resident club. Website:playavista.com
The Sevens, Wilshire and Rimpau boulevards, Hancock Park
Developer BLDG Partners and real estate brokerage Partners Trust are introducing The Sevens, Hancock Park’s newest residential development featuring seven three-story detached single-family homes set within a historic neighborhood and a protected park-like location.
The style is reminiscent of the brownstones and row houses you might see in New York and London.
Hancock Park was recently named in Knight Frank's "Wealth Report" as one of five neighborhoods throughout the world with the greatest real estate value.
"Hancock Park is an amazing opportunity for us," said developer Guy Penini, principal with BLDG Partners. "Think of it as a small Connecticut town dropped into the city. It’s beautiful, it’s green, and full of estates and majestic homes."
"The row house concept allows us to capitalize on the prestige of being in Hancock Park, but also have the condo lifestyle," he said.
The seven contemporary homes in the Park Mile district of Hancock Park are organized in a uniform north-south orientation.
Each residence features high coffered ceilings in the main living space, large windows throughout, a formal entry with stone flooring, filtered skylights, and wide-plank white oak flooring. The main living areas are on the second floor, with the garage and a guest bedroom (or home office) on the first floor. A rooftop terrace offers panoramic mountain and city views.
They are being staged now and are expected to come on to the market in June or July.
Number of homes: Seven detached single-family residences Price range: $1,675,000 to $2 million Developer/architect: BLDG Partners/Modative Home sizes: Three and four bedrooms, with three different floor plans, ranging from 2,166 to 2,429 square feet of living space Amenities: Each home has a two-car garage (with pre-wiring for electric car charging), a rooftop terrace with city and mountain views, guest parking, Viking appliances, Carrara marble in the bathrooms, and the capacity for solar paneling. Website:thesevensla.com