Category: Real Estate

Danny McBride Lists His Modern Los Angeles Condo for $1.8 Million

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Danny McBride, the actor and comedian known for his roles in “The Righteous Gemstones” and “Pineapple Express,” has just put his LA condo up for sale. Priced at a cool $1.8 million, this top-floor unit is nestled in the iconic Broadway Hollywood building and covers a generous 2,159 square feet. The space includes a single bedroom and two bathrooms. McBride has cherished this place since 2008, making it a special part of his journey in both TV hits like “Eastbound & Down” and films such as “Tropic Thunder.”

Back in 2008, McBride snagged this gem for $1,435,000. Since 2013, it’s been on the rental market, now going for about $9,000 a month. Located in the heart of Los Angeles, the condo boasts stunning views. You can gaze out at the Hollywood sign, picturesque hills, and even the famous Capitol Records building. It’s a true loft-style haven, featuring expansive windows and a spacious living area that seamlessly blends into an open kitchen setup.

Step inside, and you’ll notice the recent updates that give it a fresh, modern edge. The kitchen is a dream, decked out with top-notch Viking appliances and sleek stainless steel cabinets. It’s not just about looks; the exposed ductwork and pipes add an urban, contemporary flair. Upstairs, the bedroom is a retreat in itself, complete with a walk-in closet and a luxurious bathroom featuring marble details, dual vanities, and a deep soaking tub. Plus, there’s a terrace with a cozy fireplace, perfect for those chill LA evenings.

Residents of the building can enjoy amenities such as a rooftop pool, cabanas, a hot tub, and a gym. The property offers full-service assistance, including a 24-hour staff and valet service. The monthly HOA fee of $2,461 covers these perks and two parking spaces.

Danny McBride, a multi-talented individual involved in acting, comedy, writing, and producing, is seeking to part ways with this duplex penthouse as he has relocated to Charleston, South Carolina, where he currently resides with his family and runs his production company. The property is eligible for California’s Mills Act, which allows tax breaks to preserve historic properties and is priced attractively due to this benefit.

The 2,200-square-foot duplex penthouse, part of a 1939-built annex added to the original Broadway Hollywood Building, features banded windows providing ample natural light and unobstructed views of classic sites, structures, and scenery. The refurbished loft boasts one bedroom, two bathrooms, soaring double-height ceilings, and an expansive living area facing the picturesque views.

The condo features a contemporary open kitchen adorned with stainless steel appliances and cabinetry, accentuated by exposed ductwork and pipes on the ceiling. Additionally, a staircase leads to the loft bedroom. Features such as a walk-in closet, ensuite bathroom adorned in black, white, and gray marble, and a private outdoor terrace, complete with a fireplace, all add to the charm of this property.

The listing for this property is handled by Deedee Howard from The Agency. If you’re considering buying, you’ll find yourself in good company as there are quite a few celebrities living nearby. This beautiful building offers top notch amenities. Has been the residence of stars such as Charlize Theron, Jason Statham, Dave Navarro, and more. Adding to its allure as a celebrity hotspot is the renowned sushi restaurant called Katsuya located on the ground floor. As of now the McBride property remains a luxurious choice on the market.

December 5, 2023
27,000 Residential Units in Pipeline for Downtown Los Angeles

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The 2023 Downtown Los Angeles Residential Report by the Downtown Center Bid reveals a substantial expansion in urban development, with 27,000 residential units currently in the construction pipeline for downtown Los Angeles. This marks a significant turnaround since 1999, transforming an area once characterized by underdevelopment and lack of services into a burgeoning urban center.

The report asserts that the current market in downtown Los Angeles consists of 47,000 residential units, which include 31,000 market-rate rentals, 7,000 condos, and 7,500 units of affordable housing. Nearly all of the market-rate rentals have been constructed after 1999, but demand has been consistently high since then. Approximately 87% of the market-rate rentals constructed between 1999 and 2007 were renovations and rebuilds of existing commercial spaces. More recently, the focus has been on breaking ground on completely new buildings. High-rise buildings of over thirty stories have been cropping up across the district.

Current Residential Market and Recent Developments

Downtown Center Bid describes three such buildings that opened in 2023, the AVA Arts District, the Beaudry, and the Figueroa Eight. Developed by AvalonBay, the AVA Arts District is a mid-rise building with 457 rental units and over 61,000 square feet of retail space. The Arts District has been becoming increasingly gentrified over the past few years, with developers taking advantage of the large, unused warehouse spaces. The Beaudry is a sixty-four-story residential building situated in the FIGat7th retail complex. It includes 785 units and is the first project developed by Brookfield in the downtown Los Angeles area. The Figueroa Eight residential tower was renovated by Mitsui Fudosan who has owned the property since the 1980s. It now contains 438 brand-new residential units.

Future Projects and Neighborhood Growth

The report goes on to showcase three residential buildings currently under construction. The Weingart Tower 1A will become one of the largest permanent supportive housing projects in the area upon opening, with its nineteen stories and 278 units. The Onni Group’s Olympic & Hill tower will become the city’s tallest residential high-rise at over 760 feet. The building will contain 700 apartments and 15,000 square feet of retail space. In the Arts District, Carmel Partners is building the neighborhood’s first high-rise. The Alloy building will be home to 475 apartments and over 100,000 square feet of retail space.

The boom in development will not stop there. The report breaks down the specifics of projected construction and population growth in each of downtown LA’s eight neighborhoods. The bustling Financial District has over 1,600 apartments in the works, and that is one of the lowest pipeline numbers across the eight districts. South Park, home to the Crypto.com Arena and the LA Convention Center, comes in with the highest number of planned apartments with 6,685. It is followed closely by Historic Downtown with 4,610 residential units projected, and the fashionable Arts District, with 4,431 projected apartments. Chinatown, the Fashion District, and Bunker Hill will also see major upticks in residential developments in the coming years.

Affordable housing remains a pressing issue in Los Angeles, with downtown LA emerging as a key area for such development. According to the Downtown Center Bid, downtown LA, which comprises only 1% of the city’s total area, remarkably contains 10% of its affordable housing. This positioning as a central location for affordable living options indicates that downtown LA is poised to further expand its affordable housing projects in line with the ongoing construction boom.

November 28, 2023
Short-Term Rentals: The Battle Against Restrictive Measures in Los Angeles

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In Los Angeles, one of the United States’ most expensive cities to live in, a crucial debate is unfolding over the future of short-term rentals. The imminent vote by the city council on a proposed measure has ignited controversy, raising concerns about the potential impact on homeowners engaged in home sharing.

The proposal, the result of a last-minute deal between Council President Paul Krekorian, the hotel industry, and union representatives, adds layers of complexity to the already intricate short-term rental landscape. Should it pass, Angelenos will be obligated to seek permission from the LAPD to participate in home-sharing programs. The process includes daunting elements like mandatory fingerprinting, background checks, public hearings, and additional fees, placing private homeowners in a regulatory category alongside businesses like gun vendors and pawn shop owners.

At its core, the proposal emerged as part of a compromise to remove a measure from the March ballot, originally designed to compel hotels to allocate vacant rooms to homeless individuals. The unintended consequence now places private homeowners on the front lines of regulatory scrutiny.

The Proposed Regulations and Their Impact on Homeowners

Critics of the proposal argue that it lacks a nuanced understanding of the existing short-term rental rules already in place in Los Angeles. According to the Los Angeles Planning Department, the city boasts a robust registration and compliance system for home-sharing, as evidenced by a 74% decrease in short-term rental listings. While recommending platforms like Airbnb for their contributions to effective enforcement, opponents contend that the proposed measures would introduce unnecessary red tape without significantly enhancing enforcement capabilities.

Additionally, the opponents have raised alarms about the potential strain this proposal could impose on the LAPD, particularly at a time when staffing levels within the department are at historic lows. They argue that law enforcement resources should be prioritized for community protection rather than diverting attention to regulating homeowners seeking additional income in the face of the rising cost of living. Concerns have been voiced that the proposed measures might discourage diverse communities from sharing information with law enforcement, creating a chilling effect on cooperation.

The Broader Implications for Los Angeles Communities

The impact of such restrictive measures reverberates deeply within the community of responsible homeholders in Los Angeles. An actor and director, symbolic of many Angelenos, shares a personal story highlighting the critical role home sharing played during the challenging times of the pandemic and the actors’ strike. For years, the spare room in this individual’s home has provided essential supplementary income, covering mortgage payments and basic necessities.

As the city council stands at the precipice of a decision, the potential consequences of these proposed measures have been scrutinized. Critics argue that rather than addressing genuine public safety concerns, the proposal seems to prioritize the interests of the hotel industry over the livelihoods of homeowners. The rallying cry is clear, with many appealing against obstructing a service that has become a lifeline for countless hosts in Los Angeles, allowing them to navigate the economic challenges and make ends meet. The dialogue surrounding regulatory oversight and individual freedoms is ongoing, and preserving home-sharing remains a paramount consideration for the diverse and resilient communities of Los Angeles.

November 21, 2023
Revitalizing Chinatown: How Residential-to-Restaurant Conversions Are Transforming the Area

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A stunning string of residential-to-restaurant conversions has created a captivating area out of the previously somewhat abandoned Chinatown.

Architect Jingbo Lou has taken his own corner of Victor Heights and developed it into a flourishing restaurant hub. He took 100-year-old bungalows and a sliver of the neighborhood and made an inviting area that enthusiastic food lovers can thoroughly enjoy.

The ‘Forgotten Edge’ of Chinatown, on the first hill north of LA’s downtown core and Dodger Stadium, borders Echo Park. The sector is cut off from the majority of Chinatown by the 110 freeway. Its famous name was coined in the early ‘90s due to a reputation of neglect from local police divisions that were disadvantaged due to district boundary debates.

Now, a cluster of six small residential buildings has become a series of trendy new restaurants at the corner of Alpine and Centennial streets. The culinary hub is being called the ‘Alpine Courtyard,’ inviting those with exceptional tastes to its door. LA chefs and restaurateurs have pulled out all the stops to fashion exquisite dishes that any palate will appreciate.

According to Lou, preserving a piece of the city’s history is the goal. Restoring buildings that have stood tall for a century brings new life to a neighborhood that used to thrive back in the day. He’s rejuvenating the area by adding a beacon of flavorful beauty to the end of a once-forgotten enclave.

The complex was once set to be torn down for luxury apartments but took a purposeful turn. The neighborhood is mostly residential but is currently experiencing an influx of new developments, pointing to a promising commercial future. What was once a working-class neighborhood is now adorned with condos worth over $1M alongside the old Victorian apartment buildings and bungalows.

Lou hails from Beijing, having moved here in 1991 to pursue a master’s degree in architecture and landscape at the University of Southern California. His higher education kick-started his career in LA. Lou spent 2005 to 2012 gaining experience preserving buildings in the area as an architect with Heritage Housing Partners, a non-profit whose mission was to provide affordable homes to low and moderate-income first-time homeowners. In 2014, he handled the preservation of Koreatown’s Hotel Normandie.

Lou purchased the property alongside two partners after previous plans for the space fell through. He was proud of the place and his part in maintaining history, exclaiming, “Preservation is not just about the buildings, but also the settings and the culture.” According to him, preserving the settings and culture of Victor Heights means reinstituting the commercial fabric of the neighborhood. He provides affordable rent for first-time small business owners, allowing them to showcase their exquisite dishes to connoisseurs in the area. He stated that every tenant of Alpine Courtyard “are in their mid-30s, have accumulated a lot of experience in their fields and were looking for a starting point to open their own businesses.”

The deal to develop the plot was finalized in 2019, and Lou has been helping it thrive ever since. The plot was already zoned for commercial business as part of a master plan amendment from 1970 that was set in place due to the plot’s proximity to water management district buildings, major freeway interactions, and Elysian Park. Lou plans to maintain the existing layout rather than embark on new construction projects.

November 15, 2023
Agreement Reached to Withdraw L.A. Homeless Housing Initiative from March Election

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Los Angeles City Council President Paul Krekorian has recently entered a significant deal with the influential hotel workers’ union that impacted the city’s ongoing housing debate. Marking a pivotal move, the deal effectively removes a controversial ballot measure from the upcoming March election. The election was expected to have mandated the participation of hotels in a city program that was designed to provide shelter to homeless residents in vacant hotel rooms.

The terms of this groundbreaking agreement clearly state that the City Council gave a nod to a fresh set of regulations affecting the development of new hotels. These regulations are anticipated to make the approval process more rigorous for the forthcoming hotel projects, thereby enhancing the level of scrutiny on such procedures. Moreover, hotel developers will be held accountable if any residential housing is demolished in the process of construction. This necessitates the replacement of these housing units either through new constructions or through the acquisition and renovation of properties.

The proposal championed by the Unite Here Local 11 is equally significant as it represents the interests of over 32,000 hospitality workers in Southern California and Arizona. As the stipulation of their proposal to house homeless residents in hotel rooms becomes voluntary, it highlights the effective blueprint of Inside Safe, an initiative spearheaded by Mayor Karen Bass to tackle homelessness. Notably, hotel owners have participated in the existing program, reflecting their willingness to constructively address the issue.

The collaborative agreement has been praised by Unite Here Local 11, whose co-president, Kurt Petersen, sheds light on the importance of securing housing for their members within reasonable proximity to their workplaces. He stated, “With this ordinance, we have done more to protect housing than any single contract demand would have done,” This move hints at a significant breakthrough in their ongoing campaign for better working and living conditions.

While the proposal has already secured support from five other council members, including Hugo Soto-Martínez, John Lee, Katy Yaroslavsky, Nithya Raman, and Traci Park, its potential ramifications have prompted intense scrutiny due to certain complications. Council member Park, a member of the council’s trade and tourism committee, expressed concerns over the original measure. The member highlighted the potential pitfalls of housing vulnerable individuals who are devoid of comprehensive on-site support services. Her remarks reflect a dire need for a holistic approach to address homelessness that accounts for the complexities of social services necessary for sustainable rehabilitation and reintegration.

Unite Here’s prolonged efforts to secure improved wages and working conditions for its members have witnessed the arrival of the latest accord. It has manifested a series of localized strikes and successful negotiations with several hotels across Southern California. Their contribution to the election of former Unite Here organizer Hugo Soto-Martínez shows their involvement in the political arena, which eventually made them a formidable force in shaping L.A.’s policy landscape.

Amidst the rush of hotel developments, the ongoing battle to preserve affordable housing has emerged as a focal point for the union. This is where Krekorian’s proposal intends to make the evaluation process more rigorous for potential hotel projects, emphasizing the need to assess the impact on housing demand and other vital community services. This emphasis is a critical step forward to ensure balanced urban development, considering the multifaceted needs of the city’s populace.

Amidst the discourse, the hotel industry has raised concerns about potential safety and operational challenges associated with housing vulnerable populations. Their concerns stem from the unpleasant experiences documented during the implementation of the now-defunct Project Roomkey program, which struggled to overcome various logistical and security challenges due to the influx of homeless residents into hotels during the pandemic.

As the destiny of the proposal unfolds, implementing this multifaceted approach is expected to shape the city’s housing and hospitality landscape. With a keen focus on responsible and community-conscious development, the collaborative efforts between key stakeholders hint at a potential turning point to strike a balance between economic growth and social welfare.

November 10, 2023
Foot Locker Has Signed 2023’s Largest Industrial Pre-Lease

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Foot Locker’s newly announced pre-lease represents Los Angeles’s largest 2023 pre-lease. The agreement will see the athletic retailer develop 361,000 square feet of warehouse space in Los Angeles County. The land was acquired by Ares Management and the Black Creek Group for $46.1 million, which is being leased to them by Jones Lang LaSalle Incorporated (JLL). The El Monte Logistics Center will be a “Class A Cross Dock Logistics Facility” currently under construction. According to an announcement by Ares Management, it is expected to be ready by the end of 2024. Foot Locker’s lease of the facility should extend through the second quarter of 2031.

Foot Locker is one of the United States’ most prolific commercial retailers. Specializing in athletic clothing and footwear, it gained an international reach and opened over three thousand locations worldwide. Foot Locker’s website currently lists nine retail sites inside of Los Angeles. There is no statement whether this new warehouse acquisition represents the beginning of further regional investment.

Ares Management is a global investment manager in credit, private equity, and real estate. Black Creek Group is a US-specialized real estate management company previously based in Denver, which was acquired by LA-based Ares Management in 2021. Since then, many of Black Creek’s executives have been moved to Ares Management, and bot headquarters are expected to relocate to a new location inside Los Angeles before the end of 2024. The successful development and the lease of the El Monte Logistics Center represent a significant joint investment of the unified brands and a particular commitment to the Los Angeles area.

Jones Lang LaSalle Incorporated is a Chicago-based global real estate firm founded in the United Kingdom. It invests heavily in real estate, including office space, single-family homes, and extensive facilities like the El Monte Logistics Center. In May 2023, JLL reported a $9.2 million quarterly loss, including a 15% drop in revenue from the Market Advisory wing that handles property and real estate leases. At the time, JLL executives labeled this a temporary decline, and the agreement with Ares Management and Foot Locker could represent this. Pre-leases of this size are uncommon in the current market.

Such sizable acquisitions were more common during the high-stakes competition that defined the first years of the 2020s. The current industrial environment has largely trended toward occupiers lowering costs rather than securing competitive spaces. It is also true of other top markets, where trends show vacancies and sub-leases becoming more common over time.

Foot Locker’s move resembles strategies from a time of higher consumer spending. Other leases of similar size recently took place, including a renewal of 400,000 square feet by OnTrac in Commerce and a new lease of 443,000 square feet by National Road Logistics in Torrance. JLL’s executives had told investors in May that they expected investment activity to increase by the end of the year. This prediction has now been supported by Ares Management and Footlocker’s significant acquisition.

October 27, 2023
Boost in Homeownership: Understanding California’s ADU-to-Condo Bill, AB 1033
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In a shift from the norm, California homeowners can now transition from renting out Accessory Dwelling Units (ADUs) – commonly known as “granny flats” – to selling them in the style of condominiums, thanks to the newly passed Assembly Bill 1033.

Spanning a range of styles from converted garages to tiny standalone homes in backyards or even unused sections of a primary house, ADUs have been a significant part of California’s housing landscape. This legislative move, introduced by Assemblyman Phil Ting from San Francisco, aims to foster homeownership opportunities.

For this system to come into play, however, local governments must actively choose to adopt the ADU-as-condominium model.

Here’s a breakdown of how it operates in cities that embrace this initiative:
1. Utility Notification: As with any new condo establishment, those constructing ADUs must inform local utility providers, which includes services such as water, gas, electricity, and sewerage.
2. Formation of a Homeowners Association (HOA): A necessary step to assess dues covering communal areas like shared driveways, pools, or rooftops.
3. Separate Property Taxation: The primary residence and the ADU will each have distinct property taxes.
Ting anticipates that, at least initially, these ADUs will predominantly be sold to close acquaintances or family of the property owners. However, as this trend gains traction, the scope of selling ADUs could soon mirror standard real estate practices.

Meredith Stowers, an ADU-focused loan officer at CrossCountry Mortgage in San Diego, perceives this as a win-win situation for existing homeowners and potential new buyers. She notes that many homeowners, especially retirees on limited incomes, can utilize this to bolster their financial status. Not only does it provide retirees an avenue to maximize the equity of their property, but it also presents younger families with a feasible entry point into the housing market.

Highlighting a prevalent dilemma, Stowers explained that many retirees find it economically unsound to relocate to a smaller residence after years of accruing high-rate loan modifications. But this legislation offers them a novel solution: construct an ADU, move into it, and potentially put their primary house up for sale.

Such an approach to ADUs isn’t unprecedented. In 2019, after deregulating ADU construction constraints, Seattle saw a fourfold surge in ADU permits from the previous year. A March report revealed that Seattle granted permits for both attached and detached ADUs, with a noteworthy portion being multi-ADU sites or new single-family property developments.

In Seattle, for example, detached ADUs or “backyard cottages” spanning over 1,000 square feet were reportedly sold for figures ranging from $500,000 to $800,000.

This progression, mirrored in other states like Oregon and Texas, signifies a promising direction for California’s housing landscape, potentially revolutionizing how homeowners and buyers perceive and deal with ADUs.
October 19, 2023
Los Angeles Housing Market Rose $202 Billion in the Past Year, Zillow Says

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While real estate becomes increasingly expensive in every area, Los Angeles prices are soaring to unexpected heights. The numbers recently released by Zillow are signaling a meaningful rise in the housing market, making the public take notice.

According to Zillow’s latest report, the estimated value of the housing market in the L.A. metro area was up $202 billion in the last year alone. That number represents the sum of Zilow’s estimates for every house on the market in a given area. The area’s total value was reportedly $3.7 trillion, rising 38% over the past three years.

In August 2023 alone, the average price of a home in Los Angeles County was up a shocking 4.2%, according to the California Association of Realtors.

“While a small chunk of this growth can be attributed to a 1.3% rise in the average value of a U.S. home over the past year, the powerhouse behind this surge has been new construction,” Zillow senior economist Orphe Divounguy stated. The trend may span the United States, but the spike in Los Angeles County is out of the ordinary.

Orphe Divounguy stated, “Builders have chipped away at the housing deficit as a steady flow of new homes have hit the market this spring and summer.” As households grow at rapid rates that outpace the nation’s housing stock, we continue to get a clearer picture of why prices have risen in such a stark and astonishing fashion.

Approximately 6.3 million units were constructed between 2015 and 2021. Unfortunately, that number couldn’t keep up with the 7.1 million new households created then. There is a solution on the table, according to Divounguy, as controversial as it may be. Creating “higher-density homes wherever possible to work around increased costs and bring desperately needed units to the market” seems to be the current action plan.

However, implementing this current method is more complex than one might expect. “Obstacles remain to new construction in many parts of the country,” he added. “Measures that allow for more density and increase buildable land would help.” Instead of pending legislation, work is being done to remedy the issue.

With such a significant rise over a short period, analysts are considering future moves the market will make. If we’re looking at a continuous increase in prices and evaluations, the housing market could easily reach unprecedented heights. $202 billion over one year is extraordinary, and even if no steep increases occur shortly, the market is in a strong position.

Still, more work needs to be done to accommodate the housing market’s demand today. New measures will need to be required if the pace of growth will catch up with the number of households developing in the future. We’ll keep an eye on the next steps the market takes, how the evaluation of Los Angeles County real estate operates, and see how next year compares to this one.

October 5, 2023