Los Angeles Real Estate Blog

New Listing: 581 N Windsor Boulevard, Los Angeles 90004 - Offered at $1,375,000 - Meticulously Renovated Fourplex with Loads of Charm and Strong Rents

2012-02-10T10:39:00.000-08:00

Adner Realty Group is pleased to present our newest listing, 581 N Windsor Boulevard. This fully remodeled fourplex in the desirable Larchmont Village neighborhood is offered at $1,375,000.

This property has four one-bedroom, one bath units totaling 4,116 sq ft, that have been meticulously renovated preserving the building's 1924 character and charm.

This is a rare opportunity to purchase a fourplex that offers strong income and low expenses in an "A"-quality neighborhood.

Rents totals $7,729/month and expenses, excluding property tax, total $636/month.

The building is one block from Paramount Studios, a short distance from Larchmont Village, and has a strong rental history.

The property was remodeled in 2010 and 2011 and includes the following upgrades:

All new kitchens - new cabinets, counters, flooring, appliances
New central heating
New electrical panel, new wiring, new light fixtures
Bathrooms with new sinks, new fixtures, some new tile
Each unit has separate laundry room with new washer/dryers
New seismic retrofitting ("bolting")
New interior and exterior paint
New concrete and landscaping

This turnkey property is shown by appointment only. Please contact us if you'd like to set up a viewing.

Westside Los Angeles Home Market Defies Gravity; Median Price Up 25.4% in Past 12 Months in Beverly Hills, Beverly Hills Post Office, Brentwood, Pacific Palisades, Santa Monica and Westwood; This, Despite Prices Dropping 1.3% Nationwide in Past Year

2012-02-03T09:41:00.000-08:00

Median price of a Westside Los Angeles home rose 25.4% in the past 12 months

While gloomy housing data saturates the Internets, what has been happening in the Westside Los Angeles home market? Guess what folks, median price has been going up. A lot.

Median Home Price

Westside Los Angeles can be sliced and diced in many ways, but we included the following neighborhoods in our sample:

Beverly Hills
Beverly Hills Post Office
Brentwood
Pacific Palisades
Santa Monica
Westwood

From January 2011 to January 2012, the median home price in Westside Los Angeles increased from $1,485,000 to $1,862,000, a 25.4% rise in median price in 12 months.

Quite a contrast to the 1.3% price decline in median price nationwide as reported by the Case Shiller Index.

But remember, the Westside Los Angeles real estate market is unlike the market nationwide.

The median sale price for a home nationwide in December was $169,000, one-tenth the price of the average Westside home.

What does this mean?

Increase in median price is due to many factors, and this 25.4% rise doesn't mean that the average home increased 25.4% in the past year.
However, the implication is that Sellers can list their properties without worries that we're in a "real estate depression", and Buyers can purchase homes without panicking that they've assumed an enormous risk that will lead to their financial undoing.

The Months' Supply of Inventory declined 13% from Jan 11 to Jan 12

Months' Supply of Inventory

From January 2011 to January 2012, the months' supply of inventory declined steadily from 9.3 months to 8.0 months -- 13%. (Months' supply of inventory is a measure of how many months it would take to sell all the homes currently on the market.)

What does this mean?

A six months' supply of inventory indicates a balanced market between buyers and sellers. The 8.0 months' supply of inventory recorded in January 2012 means this is still a Buyers' market.

Nevertheless, the overall trend is Buyers are losing market power, and the market is shifting in the direction of a Sellers' market.

What to do on the Westside this year? Should I Buy, Should I Sell, Should I Rent?

Yes. Yes. And Yes.

The reality is that Westside homes are expensive and there is still a lot of uncertainty in the market.

Our message is, it's a fine time to buy, sell, or rent.

And the message behind the message is: Fear Not. Everything is actually OK out there in the streets. The carnage is behind us.

We expect the market to gradually improve, month by month, as many of the structural real estate problems work their way through market.

If you have questions about Westside Los Angeles real estate, please give us a call at (310) 845-6810 or email us by clicking on this link.

Venice Development Alert: 6 Townhome Project for Sale at Sunset and 4th; Construction Underway; Permits Paid / Pulled; Just Add Intrepid Developer and $2 million Cash

2012-01-30T15:53:00.000-08:00

This is a post by Luke Jones. On the hunt for a rare-to-find development opportunity in Venice? Look no further than this six townhome development site on the corner of Sunset and 4th just steps away from the world famous Golds Gym. The project has been approved, and permits have been paid/pulled. For $2 million, this can be yours:

“The project was designed by William Adams Architects and is a project unlike any other for this area requiring all on-grade construction. The garage floor can fit a maximum of 3 cars or 2 cars and an open workspace area. The garage floor also includes a washer/dryer area and a full Bathroom. The 1st floor is an open living area with a double height ceiling in the kitchen. The living area includes a fireplace and a private attached patio. Both the master bed and second bedroom are on the 2nd Floor and lay on adjacent sides of the development. The master includes a sitting area, a large shower and a walk-in closet...All of the 6 units are to be sold as market rate town homes.”

As I have previously reported, this little pocket of Venice is going through a real growth spurt and renaissance. With rentals few and far between and smartly priced homes moving fast, I can see these townhomes being snapped up quickly. For further information on this development or for any other real estate advice in Venice and the Westside, don't hesitate to drop me a line by clicking on this link.

In 2011 Home Prices are Flat, But Inventory Declined a Dramatic 41% in Hills "West" and "East", Beverly Grove, Hancock Park, Los Feliz, Silver Lake and Echo Park; Price Increases on the Horizon?

2012-01-23T10:48:00.000-08:00

2011 Median Home Price in Los Angeles (central) was about $850,000

Median Home Price

In 2011, the median home price in the central part of Los Angeles were essentially flat at around $850,000. The neighborhoods included are:

Beverly Center - Miracle Mile
Hancock Park - Wilshire
Hollywood Hills East
Los Feliz
Silver Lake - Echo Park
Sunset Strip - Hollywood Hills West
West Hollywood

What does this mean?

The fact that the median sale price is moving sideways means there is market stability. Sellers can sell today without the fear they are "leaving money on the table". Buyers can purchase without the fear that they must "jump in today" or be faced with rising prices tomorrow. But stable markets don't always remain stable for long...

2011: Months' Supply of Inventory of Los Angeles (central) homes Declined 41%

Months' Supply of Inventory

In 2011, the months' supply of inventory declined steadily from 9.3 months to 5.3 months -- a significant 41%. (Months' supply of inventory is a measure of how many months it would take to sell all the homes currently on the market.)

What does this mean?

That the market is "tightening up". Although prices are currently stable, properties are being "absorbed" faster on the market, as buyers chase fewer and fewer properties

What about 2012? Where are we heading?

Our prediction is that prices will rise in 2012, even if by a small increment. Our reasoning is that an inevitable result of this decline in the months' supply of inventory is an increase in prices.

This assumes a stable financing environment, but the Fed has given every indication that they will maintain interest rates at current levels.

Other market forces may intervene (increase in short sales / foreclosures as a percentage of overall market, financial crisis #2 spurred by the euro, etc.), but current data supports a modest to partially sunny home market in 2012 this desirable section of Los Angeles.

Los Feliz in 2012 has a Stable Home Market; Median Price Up 20% Since 2009; With Confidence, Relish Griffith Park, Scenic Views and a Classic Vibe

2012-01-20T10:11:00.000-08:00

While handicapping price trends across Los Angeles neighborhoods from 2006 - 2011, we thought we'd stop in one of our favorite neighborhoods, Los Feliz.

2630 N Vermont Avenue, Los Feliz

What's not to like here?

Many of original 1920's estates are intact and are unrivaled by anything east of Beverly Hills.

You've got the sights and recreation of Griffith Park, including the awesome, intimate Greek Theater and horseback riding (we highly recommend the "Sunset Ride to Mexican Restaurant", where, half way into a rustic ride, you can slake your ranchhand's thirst with a tangy margarita.)

You've got restaurants galore on Hillhurst and the small-scale, quiet neighborhoods. It's no wonder generations of families and creative types have flocked to this neighborhood.

One of the earliest land grants in California, Rancho Los Feliz was granted to Jose Vicente Feliz in 1795 and eventually became the neighborhoods of Los Feliz and Silver Lake.

It should also be noted that the Los Feliz includes the lesser-known and more modest neighborhoods of Atwater Village and Franklin Hills, but the "stars" of the area are the homes and estates north of Los Feliz Boulevard.

Los Feliz market stable following "end-of-bubble" 2007

But we digress ... what have sales trends been over the past five years?

After experiencing a "peak to trough" decline in prices of 38% from 2007 - 2009, Los Feliz is back in business, and 2011 prices are 20% off the 2009 low at $839,000.

Prices have essentially been flat for two years. This is the definition of a stable market. Buyers and Sellers can confidently transact, without the pressure of a rising, "heating up" market, or the inertia of a declining market.

4053 Woking Way, Los Feliz -- home of Walt Disney

The top sale of 2011 in Los Feliz was 2630 N Vermont Avenue, that sold for $4.55 million. The "Van Griffith" residence has 6 bedrooms, 4 baths, and is set on a large, 3/4 acre lot.

A notable sale was 4053 Woking Way, the original "Mouse House", the former home of Walt Disney. This French Norman estate has 4 bedrooms, 5 baths, and 6,388 sq ft of living area and sold for $3.7 million.

Hollywood Hills Smackdown 2012: "Hills West" Catching Its Breath While "Hills East" Gains Footing; "West" Median Price at 6-Year Low at $1.06 million; "East" Median of $828K Up 26% from 2008 Low

2012-01-18T11:07:00.000-08:00

Hollywood Hills Smackdown

Now that 2011 is behind use, we thought we'd do a "Hollywood Hills West" vs. "Hollywood Hills East" smackdown, to see how these two adjacent neighborhoods fared in terms of pricing in the 2006 - 2011 period.

Although collectively known as "The Hills" the two neighborhoods are distinct markets divided by the 101 Freeway (or back in the old days, the Cahuenga Pass.)

Hollywood Hills West

The larger "Hills West" includes the Bird Streets / Doheny Estates, Sunset Strip, Laurel Canyon, Mount Olympus, Nichols Canyon and Outpost Estates.

Top Sale "Hills West" 2011: 9050 Oriole Way

In the "Hills West", the top sale in 2011 was 9050 Oriole Way in the Bird Streets that sold for $14.5 million. This renovated 1979 home has 3 bedrooms, 5.5 baths, and is set on a magnificent 3/4 acre.

Median sale price in the "Hills West" reached a 6-year low in 2011, at $1.058 million, down 31% from the high attained the "go-go" year of 2007.

"Hills West" -- Prices in 2011 were down 31% from highs of 2007

Hollywood Hills East

The "Hills East" includes Vine Hills, Beachwood Canyon, Bronson Canyon, Lake Hollywood, the Hollywood Knoll, the Hollywood Dell and the Hollywood Manor. (I know, that's a lot of Hollywood).

Top Sale "Hills East" 2011: 3235 Durand Drive, $3.2 million

In the "Hills East", the top sale in 2011 was 3235 Durand Drive that sold for $3.235 million. This sprawling newly-built home has 5 bedrooms, 8 baths, 7,500 sq ft of living area on a 6/10 of an acre lot.

"Hills East" -- Prices in 2011 were down 26% off highs of 2007

The median price of the "Hills East" has actually been rising since a dramatic low of $660,000 in 2008, and now sits at $828,000, 26% off the high attained in 2007.

Analysis of the Smackdown

We think in the "Hills West" and "Hills East", there is a "flight to quality" and that the best properties are selling. It's the average to below-average properties, and the distressed properties that are putting a dent in the median sale price. The "mediocre" properties are not attracting buyer interest, and must be discounted to generated a sale. The short sales and bank-owned properties are sold at a "gray-market" discount of 2 - 10% and are driving down the market.

The steady decline in the "Hills West" median price over the past four years is in part due to the lack of financing for homes in the $1.0 million+ price range. Many owners who are "upside down" (which includes most people who bought after 2003) and who cannot refinance their onerous loans are electing to sell. Move-up and first-time buyers cannot obtain loans for homes in this price range. Both of these forces have an effect of driving down the median price.

The improvement of the "Hills East" median price can be in part attributed to financing. The maximum Fannie-Freddie backed loan amount in LA County is $729,750. The median "Hills East" price has been bouncing around this level for the past four years.

What Should Buyers and Sellers Do?

Buying opportunities exist in both of these neighborhoods, and buyers should be "cherry picking" from the best 25% of the market inventory. Sellers who own the "best quality" homes should not hesitate to sell. However, Sellers with the average "Hills" home should try to stay put a couple of years while the market in these neighborhoods stabilizes.

What We Do

We represent Buyers and Sellers of home in the Hollywood Hills. If you have questions about the "Hills", or would like to know more about properties there, please call Adner Realty Group at (310) 845-6810.

Beverly Hills Home Market Be-Bops Sideways in 2011; Median Sale Price A "Cool" $2.8 million; Top Sale $35 million; Construction and Remodels Abound

2012-01-05T16:11:00.000-08:00

Beverly Hills Median Home Price in 2011 is $2.82 million

In the big picture: Take a drive through Trousdale Estates or across the Flats and see a many magnificent homes under construction and undergoing major facelifts. Beverly Hills real estate had the jitters for a couple years during the 2008 - 2009 financial maelstrom, but has pretty much shrugged them off and returned to business as usual. Tennis anyone?

Our assessment is that this exclusive, high-end market, has traveled sideways for 2011. The market now looks a lot like it did all the way back in 2006.

The median price of a home in Beverly Hills in 2011 was $2.82 million, below the $3.10 million median price of 2010. This amounts to a 9% decline, but we attribute this shift more to the mix of homes types sold than an actual decline in values.

The 2011, the $2.82 million median home price in Beverly Hills still is considerably above the median home prices from 2004 and 2005 ($2.58 million and $2.49 million, respectively.)

After a Big Drop in Sales in 2008 and 2009 - Beverly Hills Home Sales have Recovered

Sales volume in 2011 was not far off levels from 2010. Sales dropped considerably in 2008 and 2009, in the middle of the financial crisis, when a plateau of 114 and 113 homes were sold. With the recovery of the financial system also came a recovery in sales volume, which rose almost 50% in the ensuing two years.

In 2011, like in 2010, nine homes sold for $10 million or more. The top sale in 2011 was 1004 N Hillcrest Road, that sold for $35 million, $7 million off its $42 million list price. This Hal Levitt designed 10,000 sq ft home is set on more than one acre and is located near Greystone Mansion, just north of Sunset.

While many 1970s and 1980s Los Angeles homes are relegated to the dumpster, Hal Levitt, who designed homes for the likes of Steven Spielberg and Lew Wasserman has ignited passion among architecture connoisseurs, who appreciate his custom twist on warm modernism.

We were wowed by Hal Levitt's 1984 home at 1200 Chanruss Place in Beverly Hills that sold last year for $12.0 million. Enjoy the views!

West Hollywood's Mixed Bag: Median Home Price Rises 15.1% in 2011, while Median Condo Price Falls 3.8%

2012-01-04T12:38:00.000-08:00

It's a new year, and we have the opportunity to look back and see how different Los Angeles housing markets fared in 2011.

First up, West Hollywood.

In the big picture: get out the Champagne. The market has "turned around": median home price in West Hollywood is up 15.1% over 2010, there are fewer distressed properties on the market. Last year we saw inklings that that the West Hollywood home market was bottoming out, and this year there was a big jump in pricing. Not entirely surprising given 2011's historic low interest rates, but this is a major "inflection point" after the woeful 29% decline in median price in 2008 - 2010.

West Hollywood Median Home Price up 15.1% in 2011

Although the median home price is up, the median condo price declined 3.8%, to $480,000. How can this discrepancy be explained? Is the market improving, declining, or bifurcating, in which the prices of homes and condos take separate courses?

West Hollywood Median Condo Price down 3.8% in 2011

Our analysis shows that the origin of the condo price decline is the high percentage of distressed properties (short sales and foreclosures) on the market.

For example, in the last quarter of 2011, 8.3% of home sales were distressed, while 25.0% of condo sales were distressed.

Distressed properties sell at a discount to a"fair" market price and drive down the overall market.

In the case of condo buildings, one distressed sale can make financing another unit in the building more difficult, creating a downward cascade in pricing.

In this market, condo buyers should expect to obtain good "value". And given the distressed competition, condo sellers should set realistic expectations about the state of the market.

Home buyers in West Hollywood cannot afford to be so picky: the biggest wave of short sales and foreclosures is behind us and they are missing out on good opportunities today as prices rise higher tomorrow. Sellers in West Hollywood should no longer hesitate to put their homes on the market ... the days of "doom and gloom" (in this corner of Los Angeles) may be behind us.

Venice Leasing Market December 2011 -- Hip, Grunge & Upscale -- You Have It All -- At a Price

2011-12-14T09:59:00.000-08:00

With Google moving into the Frank Gehry “Binoculars” building on Main in Venice, the rental market in Venice is going through a boom time. Added to that, the factor that Christmas / New Year is a time for new starts and new beginnings, the lease market is keeping Realtors unusually busy at this otherwise fallow time of year. As was reported in the LA Times in January, Google has leased over 100,000 square feet at the landmark building and has started moving its Santa Monica headquarters to the hip neighborhood of Venice Beach. They’re also adding around 6,000 new employees to their roster, so expect to see an uptick in the real estate market.

As I’ve reported previously, Rose Avenue is also going through a micro boom time with new bars, restaurants and boutiques opening around the Bakery building between 4th and 6th Streets. Whilst there has been a lot of controversy about this new construction, there is little doubt that it will bring a much needed boost to the local area and ensure that Rose continues to rival Abbot Kinney as the main destination in Venice.Given the spate of rental business, here’s a quick breakdown of what’s available on the market right now. Venice has it all – but at a price. Venice Beach is still one of the most expensive areas on the West Side, if not the whole of Los Angeles, and with the resale market going through a slump, rental prices are on the rise. But, if you’re persistent, aggressive and tenacious – you can find that needle in a haystack to call home.

First up is 120 Westminster. Situated a couple of blocks back from the beach and right opposite the dog park, this grungy building is a throwback to Old School Venice. With a pet-friendly policy, beat up communal areas, basic accommodation and a groovy roof deck with 360 degree views, this low rent brownstone is ideal for those on a budget or those who suit the more urban Venice lifestyle. Expect a vibrant community, beach vibes and impossible parking. But with units as low as $2,000/ month, this is at the cheaper end of the scale.

If you’re looking for the beach life but without the crowds like at the north end of the boardwalk, how about the Marina Peninsula. Just south of Washington, this little enclave is quieter and more upscale but no-less hip. At 125 Catamaran, there are 2 units on offer. One is a spacious 3 bedroom unit with bamboo flooring and a great kitchen priced at $3,950 / month and the ground floor unit is a spacious one, priced at $1,995 / month. On a quiet walk street with the ocean at one end and the Canal at the other, this is one of my favorites.

If a single family home is more your style and you don’t mind being just “east of Lincoln”, you could do a lot worse than 1057 Palms. At $3,600 per month, this bank owned property is being leased out for a bargain price. With 3 large bedrooms, a spacious kitchen, front and back yard, plenty of parking and utilities all included this property is my pick of the week. They’re even repainting the house, throwing in new appliances and putting down new flooring in the master bedroom.

This is a mere fraction of what’s currently available out there in the rental market and, as the prices go higher, so does the luxury. So, once again: Venice has something for every taste, every budget range and every lifestyle.

For further questions or for a free consultation, please don’t hesitate to call us. We welcome your business!

On the Property Hunt: Fixers, Probates and More: Opportunities Abound in Venice and Mar Vista

2011-12-07T21:18:00.001-08:00

This is a post by Luke Jones. One of the really interesting aspects of my job is being able to find "diamonds in the rough" or a "fixer" as we, in the trade, like to call it. Whether it's a probate, a foreclosure, a construction job gone wrong or simply that the incumbent owner hasn't done any upgrades or work for decades, there are always properties out there that, with a little vision and some dough, can be restored to glory or torn down altogether to make way for something bigger, bolder and better.

It takes a brave person in this financial climate to embark on a "fixer" but if you have the know-how, access to the capital, and relish a challenge, then this market can be fantastic if only because prices and interest rates are so low.

First up is a fascinating opportunity at 644 Brooks Avenue in Venice. This large, modernist structure is pretty plain from the outside but has great "bones" and looks to be in very solid shape. It has 5 bedrooms, 4 bathrooms, an attached garage, a huge basement, balconies, fireplaces, roof deck, hot tub and a large garden. The downside - it's halfway through a major remodel that has been done over the course of the past ten years and you might just have to start from scratch...But if you salvage the top-notch fittings, keep some of the expensive flooring / tiling, you could end up with something really special. Unfortunately for the current owners, they are HIGHLY motivated sellers. In fact, the lawyers are even on commission and so you can expect a quick negotiating process. At a very motivated list price of $1,299,000 and 3,810 sq ft across a 5,200sq ft lot, this is a real bargain. But it ain't pretty!

For something equally challenging but at a much lower cost, consider 12012 Marine Street. This probate property doesn't need court confirmation and so could have a relatively speedy escrow. It's being sold "as is" and is need of some major TLC or it could even be a tear-down. Built in 1948, it's a classic traditional style with 3 bedrooms and only one bathroom, a living room and a galley kitchen with a dining nook. It's only 1,200 sq ft, but it's across a decent 5,500 sq ft lot. The best thing about this "fixer" is its location at the base of the very pretty Mar Vista Hills and is therefore in an "up and coming" neighborhood. Significantly cheaper than its Venice neighbor, this home is listed for $649,000...It's totally habitable right now and so could be a project for someone who wanted a decent size home with opportunity to improve over time.

As always, if you have any questions or comments about these or other properties, please contact us. We'd love to hear from you!

Touring the American Apparel Factory in Downtown Los Angeles, the Largest Garment Manufacturing Facility in North America -- "Made in Downtown LA -- Vertically Integrated Manufacturing"

2011-11-18T09:24:00.001-08:00

American Apparel Warehouse - Largest Garment Manufaturing Facility in North America (© earthtoandrea)

Part of the fun of being a commercial broker is seeing the range of businesses that operate in the Los Angeles area and the buildings that house them.

We've seen all size and type of industrial property -- from the scrappiest, junkyard dog of a used car lot in Sylmar, to the pristine, NASA-like warehouse of fine art handling shop in Santa Fe Springs.

But the industrial property that's impressed us most is the American Apparel factory at 747 Warehouse Street in Downtown Los Angeles, the largest garment production facility in North America. (Special thanks to Creative Director Iris Alonzo for giving us the tour.)

Why is this operation so impressive? It's not just the sheer enormity of it -- 342,000 sq ft, a staggering 7.9 acres of interior square footage -- with miles and miles of aisles of garments in all states of fabrication. It's that it's a real, under-one-roof design, manufacturing, and distribution facility -- right here in America! right here in the center of the second largest city in the USA!

On one side of the expansive building, the youthful (and hard-working) design and marketing staff are generating the content that is manufactured on the other side by a legion of hard-working sewers, cutters, pattern makers, and leather workers. This is the non-finance economy in action -- people are employed, machines are purchased and operated, and materials are consumed: a product is made.

If this country has any economic future, we need more American Apparels. Whatever you think of the controversial company, Dov Charney's apparel business employs thousands of people in Los Angeles from all segments of the wealth spectrum. Food is put on tables; livelihoods are earned, improving lives for the many, in neighborhoods across the city.

Legendary Venice Compound of Legendary Actor Dennis Hopper for Sale In Venice for a "Medium Cool" $5,750,000

2011-11-16T09:30:00.000-08:00

Inside the Dennis Hopper Compound

This is a post by Luke Jones. As a film fan and Venice resident, the Hopper Compound at 330 Indiana Avenue, Venice, always had an air of mystique, glamour, edge and avant garde about it. Even though I would see the frail Mr Hopper in my local gym, so obviously in the grip of his illness, he still shone through as a giant in the world of free-thinking, creative, artistic driven Hollywood; the bad boy of Tinseltown who ended up as the unofficial mayor of Venice!

Not until today did I actually have the opportunity of setting foot inside this remarkable, sprawling masterpiece of a home. There is so much that makes this property unique, magical and exquisite. Firstly, it’s enormous and comprises of five separate dwellings across a 15,000 sq ft lot – there is the master house which was designed by Architect Brian Murphy, there is the guest cottage which is an original, vintage, craftsman cottage that dates back the early 1900’s and then there are the three condominiums designed by Frank Gehry.

All, except the guest cottage, have huge living spaces, garage and vaulted and exposed wooden frame ceilings. It’s almost impossible to list the number of different styles, designs and materials used in this home but somehow it manages to work effortlessly and creates a natural flow that, whilst labyrinthine, also makes sense.

The main entrance is a small, almost innocuous doorway at 330 Indiana Avenue, that leads through to a reception area that flows through to the main artists exhibition space. Beyond this is a large 3-car garage. Off to the left of the main space is a long, verdant yard with a lap pool and patio area. It is out here on the lawn that you’ll find the quaint little guest cottage that, painted white with the original Craftsman design, sticks out amongst all the modernist metal, concrete, steel and unpainted woodwork that makes up the rest of the buildings. But, even so, it seems to fit in.

It’s clearly a guest cottage or a pool house and – even though it’s about the size of my entire home, it would probably fit quite snugly inside the main living room of the master house. Back inside the master house, you’ll take a wooden stairway up to the main living quarters. This was Dennis’s crash pad. With a galley way looking down into the main exhibition space, this spacious, minimalist and yet cosy floor is entirely open plan with wrap-around terraces, skylights and floor-to-ceiling windows. It is from this side of the master house that you can access the three condos on the lot via a gangway connecting the properties. All of these condos are designed by Frank Gehry and have his signature vaulted ceilings, mixture of concrete, wood and steel and all feature large open plan spaces. Naturally, there is an abundance of bathrooms and all three condos have access to their own roof decks.

So, it’s hard not to use too many superlatives when describing this property. However, it would be remiss of me not to pass on some of the obvious eccentricities of this home – for a start, it’s going to be tough to maintain and heat. With so much wood and so much outdoor space, you’ll have to be wary of termites. With so many windows, joins, nooks and crannies you’ll need to be careful of leaks and damp. With so much open plan space, ventilation and high ceilings, this place could be very expensive to heat and with sharp edges, galley walkways, and staircases with no banisters or backing, this would be a hazard for small children.

However, if you’re looking to live in one of the coolest neighborhoods in the world, in a sprawling compound designed by some of the coolest architects of the 20th century, that was previously owned by one of the coolest cats ever to make and create art through filmmaking, then this is it. I’ve got to say, this is one of the best perks of my job – being able to wander around amazing homes like this and then share it with you. If I had to sum it up in just a few short words, I’d say that it’s unique, spacious, private, passionate and welcoming. The legend of Dennis Hopper will surely live on in this extraordinary compound. For more information, contact either Jamie or myself at The Adner Group at Keller Williams Hollywood Hills.

Despite Foul Economy, Los Angeles High-End Real Estate Retains Value and Surpasses Returns of S & P 500

2011-11-15T10:05:00.001-08:00

Beverly Hills Homes (Green) Tripled in Value in 15 Years

In a gilded era, it may come as no surprise that homes in the best Los Angeles neighborhoods have retained their value better than other property types -- and even the stock market.

The median price in Beverly Hills ($2,850,000 year-to-date in 2011) is down considerably from the $3,500,000 high set in 2008, but still stands above 2005 levels.

Similarly, the 2011 median price in the Pacific Palisades ($1,650,000) is a big step down from the $2,225,000 set in 2008, but nevertheless is on par with 2004 levels.

Some property types have suffered a far worse fate. West Hollywood condos are now back to 2000 levels.

Some investments have also fared much worse. Consider that the S & P 500 is no higher than it was in 1998!

Real estate in prime Los Angeles neighborhoods is proving to be more "blue chip" than blue chips.

West Hollywood Home Market "In Turnaround"; Home Prices Up 13% Over 2010; Top Sale Touches $3 Million Mark; Hooray, "These Dark Days Are Over"

2011-11-10T09:55:00.001-08:00

2011 Median Price up 13% Over 2010 -- Huzzah!

West Hollywood Home Market On the Upswing

There is such pervasive negative sentiment about real estate, one often assumes that all parts of the market are behaving in sync. The mumble of truly ominous buzzwords -- foreclosure-short pay-bank-owned-distressed-collapse-freefall -- drowns out the news that some parts of the market are doing fine -- and even -- dare we say, are improving. West Hollywood is one of those improving markets.

What Redfin Won't Tell You

Year to date, the median sale price in West Hollywood is up 13% over 2010 prices.

Indeed, there are foreclosures and short pays (making up 21% of the market during the past 3 months), but it should also be noted that 30% of West Hollywood sales during the same period are over the $1 million mark.

Months' Supply of Inventory in West Hollywood - Down 29% in the Past Year

Furthermore, in the last 12 months the months' supply of home inventory -- a measure of how "tight" the market is -- has declined from 6.4 months to 4.5 months.

Inventory under 6 months is considered a "Seller's Market", so Sellers -- do not hesitate to list your homes -- and Buyers, consider that making aggressively low offers won't yield results.

Let's take a look at some West Hollywood home sales from the past three months.

1010 North Orlando Avenue - $2,900,000

1010 North Orlando Avenue on a coveted stretch of this wide, tree-lined street, sold for $2,900,000, after a brief 15 days on the market. It has 5 bedrooms, 4.75 baths (two separate houses) on a large 12,250 sq ft lot.

346 Westbourne Drive - $1,925,000

346 Westbourne Drive with two structures on a lot and a sparkling pool sold for $1,925,000. There are a total of 4 bedrooms, 4 baths on a mid-sized 5,528 sq ft lot.

8916 Dorrington Avenue - $1,015,000

8921 Dorrington Avenue - $1,150,000

8916 and 8921 Dorrington Avenue show that buyers are willing to pay over $1 million to live in a jewelbox of a house in one of West Hollywood's best neighborhoods. Dubbed "West Hollywood West", this neighborhood consists of approximately 1,000 single family homes.

Lots in West Hollywood West are small -- both of these homes sit on 4,000 sq ft parcels. 8916 has 2 bedrooms, 1.75 baths, and a 1,286 sq ft home and sold for $1,015,000; 8921 has 2 bedrooms, 3 baths and a 2,302 sq ft home and sold for $1,150,000.

740 N Vista Street - $887,000

740 N Vista Street sold for $887,000. Residents of West Hollywood love their pool homes, even if they're not smack in the center of town. This 3 bedroom, 1 bath home with 1,515 sq ft sold after a brief 18 days on the market.

1236 N Fairfax Ave - $442,000

1236 N Fairfax Ave, a bank-owned property, gives us an idea of what land value is in a stretch of West Hollywood. This dilapidated teardown with 3 bedrooms, 1 bath, 1,663 sq ft on a 6,850 sq ft lot sold for $442,000. A lovely "condo alternative".

Just Listed: 3481 Wonder View Place, Los Angeles 90068 - Magnificent Living in the Hollywood Hills East - Offered at $1,550,000

2011-11-03T08:17:00.000-07:00

Adner Realty Group is pleased to present our newest listing, 3481 Wonder View Place in the Hollywood Hills.

This substantial contemporary home has 4 bedrooms and 4 baths spread across four floors. Beautiful cherrywood floors accent the open living-dining area on the main level.

Upstairs you'll find a fabulous master suite with library, large walk-in closet, bath en suite, and fabulous, unobstructed views of the San Fernando Valley.

On the two lowest levels are three additional bedrooms, a media room, and a large, ground-floor room that can be configured to your liking.

Situated on a quiet cul de sac above Lake Hollywood, this marvelous property is close enough to the hustle and bustle of the city while still benefiting from the seclusion and tranquility of the Hollywood Hills.

Offered at $1,550,000.

October 2011: West Hollywood Condo Prices Down 40% From Market Highs; Foreclosures and Short Sales Make Up 31% of Closed Sales; Yet Median Price Unchanged at Lofty $500,000

2011-10-24T09:38:00.000-07:00

Our assessment of the West Hollywood condo market is that:

Prices are off 40% since the top of the market;
Short sales and foreclosures are making their mark on the market -- a whopping 31% of the 85 condo sales in the past three months have been distressed properties.
Condos in premium, new construction projects are retaining their value more than resales in older buildings (60's -- 90's);
Yet ... the median price of $500,000 has not changed since 2009.

Let's take a look at what's been selling.

1200 N Sweetzer Ave #8 - 2 br, 2.5 bath, 1,378 sq ft - $800,000

The ten units at 1200 N Sweetzer Avenue, which has been marketed for nearly two years, have now all sold, ranging in price from $520,000 - $1,100,000. Final selling price on average was $523/sq ft, well above the $399/sq ft that the 32-unit Harper West Hollywood, one block away, sold for. Unit #8, a mid-priced unit, closed at $800,000, $580/sq ft.

825 N Kings Road -- Habitat 825

#15 -- 2 br, 2.5 bath, 1,580 sq ft - $734,900
#11 -- 2 br, 2.0 bath, 1,270 sq ft -- $725,000

Habitat 825 is an award-winning project by Lorcan O'herlihy Architects next to the Schindler House on Kings Road between Melrose and Santa Monica Boulevard. This building was launched in 2007, and units are now selling well below their original sale prices. Consider that #15 sold as a foreclosure for $734,900, off 40% from its original $1,222,000 sale price.

751 N Fairfax Avenue -- Lofts @ Cherokee Studios

#5 - 2 br, 2.0 bath, 1,506 sq ft - $591,000
#12 - 2 br, 2.5 bath, 1,377 sq ft - $531,000
#2 - 1 br, 1. bath, 1,197 sq ft - $468,000

Previously listed at stratospheric prices and then foreclosed upon, the ultra-"green" Lofts @ Cherokee Studios on Fairfax between Santa Monica Boulevard and Melrose is now selling at about $390/sq ft. Given the numerous expensive features and fixtures, this project is likely selling below replacement cost. The developer's loss is the buyer's gain.

7917 Willoughby Avenue #1 -- 2 br, 2.5 b, 1,580 sq ft -- $722,500

This project near Fairfax and Santa Monica Boulevard has eight excellent sleek, modern, loft-style units and sold out in late 2008 and early 2009. Unit #1 sold for $830,000 in November 2008, and thus lost 13% of its value in approximately three years. In spite of the price drop, this high-quality new construction has retained its value better than older stock.

1134 Alta Loma Road #104 -- 2 br, 2.0 bath, 1,038 sq ft -- $375,000

This foreclosure in a 48-unit building near Sunset Plaza sold at discount of 40% from its 2005 sale price of $625,000. Like its period brethren, this 1972 vintage building did not fare as well as its contemporary counterparts, as many upside-down and distressed owners have been forced to sell or are alienated from their condos, creating a downward cascade in pricing.

839 Larabee Street #1 - 2 br, 2.0 bath, 1,500 sq ft - $420,000

This is a foreclosure in a 1980's building in the center of West Hollywood that sold for $280/sq ft. Consider that this unit sold for $320,000 in 2001.

1250 N Kings Road #404 - 2 br, 2.0 bath, 1,121 sq ft - $390,000

A upgraded 2.0 br, 2.0 bath unit on a great street for less than $390,000. A very good price throwing the rent vs. own proposition back into balance.

4753 Ambrose Avenue, Los Angeles 90027 -- Reduced to $1,099,000 -- Jamie Adner and Luke Jones present Adner Realty Group's Listing: A Classic Los Feliz Home

2011-10-07T11:41:00.000-07:00

Updated 10/12/11: This house has been removed from the market and will be re-listed in early 2012. Stay tuned for more info.

Jamie Adner and Luke Jones of Adner Realty Group at Keller Williams Hollywood Hills are pleased to present a price reduction on this classic home in Los Feliz.

4753 Ambrose Avenue retains the authentic character of its 1922 Southern Colonial Revival origins -- yet is updated with new heating / AC, some new flooring and 22 solar panels that sell excess energy to sell back to the LADWP grid!

This home has 4 bedrooms, 2.75 baths, and comprises 2,047 sq ft on a 6,500 sq ft lot.

Traditional layout features formal living room and dining room downstairs.

The chef's kitchen features Viking range, Electrolux Dual Ovens, a Dual Drawer Dishwasher, and a GE Monogram Refrigerator.

Did we mention the green, grassy backyard, with a great covered area for entertaining?

Please contact us for more information at (310) 845-6810.

Reduced to $1,099,000 (updated 10/7/11).

Three Hot Zip Codes, Three Multifamily Picks: Adner Realty Group Rounds Up the Best Apartment Buying Opportunities in Hollywood, Silver Lake and Inglewood

2011-10-05T11:53:00.000-07:00

We analyze the multifamily inventory for sale across Los Angeles and over the years have developed our "favored" neighborhood for apartment buyers.

What makes a favored neighborhood? Those that offer a combination of good returns and opportunity for future rent appreciation; that are centrally-located, close to jobs, shopping and entertainment. They are not the "platinum" neighborhoods of Beverly Hills or Santa Monica, but the "infill" parts of the city.

Here we focus on three of our preferred zip codes: 90046 (Hollywood), 90026 (Silver Lake/Echo Park) and 90302 (Inglewood). Let's see what's for sale.

1. 1600 North Martel Avenue, Los Angeles, CA 90046 - Hollywood

$1,800,000 - 8 units - 5.92% cap rate

90046 (click to enlarge)

Located in the heart of Hollywood, near Runyon Canyon and "Rock and Roll Ralphs", this building comprises 8 classic, character units that appeal perenially to renters. Furthermore, a new owner can apply for Mills Tax Act status, whereby they will receive 50 - 80% tax abatement if they do not modify the property. This "historical" status will limit further improvements, but with the tax-advantaged cost savings, why mess with a good thing?

2. 950 Edgecliffe Ave, Los Angeles, CA 90026 - Silver Lake

$3,388,000 - 12 units - 5.65% cap rate

90026 (click to enlarge)

This 12-unit asset benefits from (1) the high-quality rental pool in the Silver Lake market; and (2) the fact that units are not subject to rent-control. There is little new rental construction in Silver Lake, a much sought-after, collegiate / post collegiate / young professional neighborhood close to Downtown, and a new owner can capitalize on the limited rental supply and appreciating rents. Well-located in a "South of Sunset" neighborhood, close to Hollywood and Santa Monica Boulevard, a major corridor to Westside neighborhoods.

3. 815 Victor Avenue, Inglewood, CA 90302 - Inglewood

$3,175,000 - 27 units - 6.13% cap rate

90302 (click to enlarge)

This 27-unit building is located in the non-rent controlled City of Inglewood across La Cienega Boulevard from the LAX / Westchester neighborhoods. As salaries have declined, renters have migrated from high-cost beachside neighborhoods such as Marina del Rey to more affordable, more central neighborhoods such as Inglewood. The result is low vacancy (2%) and high returns (over 6% cap rate) for this "bread and butter" asset.

**************************************************************************************Adner Realty Group has its finger on the pulse of the Los Angeles multifamily market. If you have questions about these or other buildings, please call us at (310) 845-6810 or email us
by clicking on this link.**************************************************************************************

Ten Million Dollar Listing Episode 3: Touring Three Beverly Hills Homes

2011-09-30T09:10:00.000-07:00

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!

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%

2011-09-27T15:13:00.000-07:00

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)

We examined five neighborhoods in the "central" part of the Los Angeles, where overall, there has been price appreciation.

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%

The standout case is Beverly Center - Miracle Mile where median price rose 7% -- which by any standard would be considered a "hot market." Surprisingly, none of these neighborhoods showed a price decline.

(click on image to enlarge)

We also looked at five neighborhoods in Westside Los Angeles, where the trend has been towards declining median price.

Venice -3.2%
Santa Monica -12.6%
Pacific Palisades -16.1%
Brentwood + 5.1%
Beverly Hillls -8.8%

The only anomaly of the crop is Brentwood, where prices have increased 5% year over year. The biggest median sale price declines are in Pacific Palisades (down 16%) and Santa Monica (off 13%).

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.

Concerto in Downtown Los Angeles Will Be Leased in Fall 2011; Complex Has Identity Crisis, Loses Its Moniker and Becomes Apex

2011-09-20T14:01:00.000-07:00


Concerto (now Apex) with Rental Building in Rear, Condo Building in Front

One Downtown Los Angeles condo project that we grew to love -- Concerto -- has a new name -- Apex -- and will be coming to market this fall as a rental building. Those of you with deep memory may recall that embattled developer Sonny Astani lost control of the building, and ownership was handed to Corus Construction Venture.


View down Figueroa from Corner Unit

A recent post from Curbed LA reports that the building will in all likelihood be leased, rather than sold as condos. (See the Apex listed here.)


Pool / Garden Area Under Construction

We are disappointed that these excellent units will not be coming up for sale. We have every confidence that they would sell: this product type (clean, new, 1 br / 2 br units) and location (can't beat 9th and Fig -- close to LA Live) are precisely what would be in demand at the moment.

Alas, Concerto-watchers, time to turn your sights to Apex, and lease the unit that you dreamed of owning.

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"

2011-09-19T10:45:00.000-07:00

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

As a result, Silver Lake / Echo Park has become the first rung on the ladder for first-time buyers who are looking to get a toe-hold in the Los Angeles residential market.

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 Silver Lake / Echo Park market is "hot" and "the inventory is moving". 56% of sales during the past two months took place in 30 days or less.

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".

We are certainly not "out of the woods" when it comes to the housing market. In August, foreclosures in California rose 12.3% over the previous month. There is still Armageddon-like talk around Fannie, Freddie and everything having to do with homeownership. However, when it comes to Silver Lake / Echo Park, it is "morning in America."

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Looking to buy or sell in Silver Lake or Echo Park? Have a question about the commercial or multifamily markets? Please call us at (310) 845-6810 or email us by clicking on this link. We'd love to hear from you.
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Downtown Los Angeles in the 1940's -- B-Roll Footage From Film Noir Era Shows Bunker Hill and $2.50 per Day Car Rentals

2011-09-11T10:50:00.000-07:00

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

Big Ticket Los Angeles Multifamily Sales Demonstrate LA Apartment Fundamentals Are Shining Brighter than Bonds and Blue Chips (but Maybe Not Gold)

2011-09-08T14:45:00.000-07:00

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

The buildings were built in 1987/8 and are not subject to Los Angeles Rent Stabilization Ordinance. The properties were renovated in 2004, and have 243 units and 101 units, respectively, selling in total for $166,000/door. The buildings sold in May 2006 and January 2007 to one owner for $183,000/door, indicating a price decline of 9.3% for this asset during the past five years.

1750 Wilcox Avenue, Hollywood

The near-$60 million purchase price for of 1745 and 1750 Wilcox is a vote of confidence for Los Angeles multifamily and for the burgeoning Hollywood neighborhood.

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

The high cost/door for this building can be attributed to the unit mix which consists of 2 and 3 bedroom multi-level townhomes. This 2004 construction sold at a 9.7 GRM, which is an excellent return for this high-quality building in a high-demand rental corridor.

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

Each buildings has 18 units, and collectively they sold for $253,000/door.

825 Wilcox Avenue

This "double header" was an all cash sale. In our view what we're seeing is a "flight to quality" and parties rich in capital are investing in Los Angeles apartment buildings as an alternative to stocks, bonds, commodities, hedge funds and other investments.

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

526 North Orlando Avenue, West Hollywood 90048 -- West Hollywood

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

526 North Orlando Avenue is a 19-unit building dating from 1964 that sold for $4,695,000 or $247,000/door.

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 strength of the multifamily market has been confirmed in the press. At Globest.com, a recent article, "Apartment Shine as Beacon of Hope", begins:

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.

**************************************************************************************We'd love to hear from you! If you have a question about the Los Angeles apartment building market, please call us at (310) 845-6810 or email us by clicking on this link. **************************************************************************************

Venice Development Watch: Rose Avenue Flourishes

2011-08-29T16:23:00.000-07:00

This is a post by Luke Jones. Whilst it's generally agreed that it's tough times in the national real estate market, it seems as if the little pocket of Venice just keeps going from strength to strength.

As I reported some months ago, there is significant development happening at the site of the old Pioneer Bakery Building on Rose Avenue between 5th and 6th. Mesh fencing has recently been installed around the construction site and an assortment of construction crew, architects, developers and commercial enterprises are pouring in and out on a daily basis.

It's starting to take shape now and is cutting an imposing figure on the normally sleepy boulevard which runs West to East from the Ocean toward Lincoln. However, undaunted by the big boys moving in (like Whole Foods on Rose and Lincoln), the local businesses are still thriving with Oscars Burger Bar opening up right next door to the already overly-popular Venice Beach Wines. And further down on the beachfront, Venice Ale House still does a bustling trade.

But, I digress, in 2008 it looked like the Pioneer Bakery was destined for failure. But a new plan was approved in May and it calls for a

...three-story building over two levels of parking. Like a loaf of bread, the residential section of the mixed-use project would be sliced into three sections, with courtyards tucked in between. A restaurant and series of retail pods totaling just over 10,000 sq. ft. would front Rose Avenue. The developer has also proposed a generous landscaping plan along the sidewalk.

As a local resident who regularly strolls the streets around Rose for my daily coffee at Groundworks, my too frequent ceviche's at the taco truck, and my ludicrously expensive groceries at Whole Foods, I can't wait to have another venue where I can go hang, wander and meet with the locals. As someone pointed out to me recently - "its about time Rose got some of that Abbot Kinney crowd back."

EVO South in Downtown Los Angeles Offers Premier City Pads with Best Views in South Park

2011-06-24T15:11:00.000-07:00

Seeing EVO South in Downtown Los Angeles is like visiting an old, beloved friend. We sold our first unit there almost two years ago, and our affection for this 4-Star, "Green", modern Building at 11th and Grand has not diminished.

The location is unbeatable, and the views capture the diverse cityscape of Downtown Los Angeles, from LA Live, to low-slung warehouse districts, to the towers of the Financial Center. Watch the world move silently from the comfortable aerie replete with all modern conveniences.

What is not captured in the photos is the beautifully finished interiors and common areas. EVO South in the South Park neighborhood of Los Angeles is a delight to see.

Lower floor units have sold, but some upper floor units are still on the market. Two impressive 18th Floor units include:

1808 - West Facing w/balcony - 856 sq ft - $590,000
1807 - East facing - 1,364 sq ft - $760,000

Some magnificent corner balcony units are also still on the market, including:

2002 - SW corner w/balcony - 2346 sq ft - $1,775,000
2009 - NE corner w/balcony - 2384 sq ft - $1,675,000

The building is over 90% sold and still great offerings remain.

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Adner Realty Group follows the Downtown condo market. If you have a question about the EVO South or other buildings, please email us by clicking on this link or call us at (310) 845-6810. We hope to hear from you.

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Read our previous blog post about EVO South: Five Reasons We Love Evo South in Downtown Los Angeles.

12.2 - 13.3 GRM in Santa Monica, California Apartment Market 2nd Quarter 2011 - Market is Stable, Balanced Between Buyers and Sellers

2011-06-13T10:52:00.000-07:00

Santa Monica small- to mid-size multifamily properties are selling at approximately 12.3 - 13.3 GRM in the past three months. This GRM is comparable to the returns that we observed 1 year ago during the 2nd Quarter 2010.

The residential housing market finds itself under many stresses, but the local apartment market, dominated by well-capitalized individual investors, is balanced between buyers and sellers.

Sellers have largely not been forced to lower prices to compete with distressed properties, and when pricing their property within the narrow GRM band at which sales take place, will net a sale within a "reasonable" time frame.

Buyers, who are fewer these days, will find that any serious offer is well-received by a reasonably motivated Seller.

Here are recent sales:

817 18th Street, Santa Monica - 20.1 GRM - Sold for $2,250,000 on 4/28/11. This 7 unit building consists of primarily large 3 + 2 and 3 + 2.5 units that are TORCA converted condominiums (affordable housing of sorts). 1975 construction. Great location right off Montana.

1311 23rd Street, Santa Monica - 13.3 GRM - Sold for $2,050,000 on 4/12/11. Building is comprised of eight 2 + 1 units, with rents averaging a moderate $1,530/month. 1949 construction, 7,416 sq ft. Location is South of Wilshire near St Johns Hospital.

2309 Oak Street, Santa Monica - 12.3 GRM - Sold for $1,800,000 on 5/19/11. This 12 unit building was has all 1 + 1 units, comprising six bungalows and six other units. Five of the 12 units are rented at below market, and the remainder are at market ($1,100 - $1,250/month). 1938 construction, 5,437 sq ft. Location is 8 blocks north of the Santa Monica airport, just off Ocean Park Blvd.

1518 19th Street, Santa Monica - 12.9 GRM - Sold for $1,300,000 in May 2011. This 7 unit building is 1937 construction with a scant footage of 2,311 sq ft. Just south of Santa Monica Boulevard.

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We are Los Angeles multifamily brokers and know the Los Angeles apartment market. If you have any questions about multifamily properties, please contact us by clicking on this link to send us an email or by calling us at (310) 845-6810.

West Hollywood Area New Construction Update 2011: Projects Sell Through at $390 - $450/sq ft

2011-05-20T10:42:00.000-07:00

2011 New Construction Condo Round-Up

In 2009-2010, years that many developers would like to scrub from the record books, a raft of great West Hollywood condo projects came to market. The level of architecture, design, planning, and plain out "cool" factor far exceeded the new construction that preceded it.

And 2009 - 2010 was an exciting time for condo buyers. Developers either had to slash their prices, or worse (and better for buyers), head into receivership or loan workout and then "red tag sale" these excellent units to move the inventory.

Bottom line is that units sold from about $390 - $450/sq ft, and buyers were able to purchase condos on the best terms of a generation: best loans, best quality, best price.

And here's the round-up:

Harper West Hollywood -- 1250 N Harper Avenue, West Hollywood 90046

In ten months, all of the 32 units are now in contract, and 27 units have closed. Sale prices ranged from $485,000 for the the (5) ground floor one bedroom, 1.5 bath units of approx. 1,382 sq ft. The top price paid was $890,000 for the largest penthouse (1,897 sq ft). Units were listed at an average of $415/sq ft and sold at exactly $400/sq ft. This project sold quickly and in our opinion was an excellent deal for buyers.

A video tour of a Penthouse unit:

Read our previous postings on Harper West Hollywood:

Habitat 15 -- 1322 N Detroit Street, Los Angeles 90069

This high-style building in the east part of West Hollywood designed by architects Predrock_Frane now has 14 of 15 units closed. All layouts are 2 bedroom, 2.5 bath and varied in closed price from $520,000 (1,207 sq ft) to $660,000 for the largest unit (2,013 sq ft). Units were listed at $433/sq ft and sold at $410/sq ft. This is an excellent project in a somewhat "edgey" Hollywood-adjacent neighborhood. But once you get inside the units, it's grand living!

Read our previous post on Habitat 15:

Habitat 15 @ 1322 N Detroit Street

Lofts @ Cherokee Studios -- 751 N Fairfax Avenue, Los Angeles 90046

The Lofts @ Cherokee Studios has an incredible array of green features and top design courtesy of Pugh + Scarpa Architects. It also has the legacy of being built on the site of the recording studio where Michael Jackson recorded "Thriller" and David Bowie recorded "Station to Station." After 18 months on the market and insufficient sales to pay the huge construction loans on the project, the project was sold in a Trustee's (foreclosure) Sale in March 2011 for $5.8 million. Stay tuned for further activity on this project. There are 12 excellent units that will come to market, ranging from 1,197 sq ft (2 bedroom, 1 bath + mezzanine) to an incredible 2,275 sq ft penthouse (3 bedroom, 2.5 bath).

Read our previous post on Lofts @ Cherokee Studios:

751 N Fairfax Avenue - Lofts at Cherokee Studios Brings Sophisticated Pugh + Scarpa Design and "Green" LEED Platinum to West Hollywood (April 8, 2010)

817 Alfred -- 817 N Alfred Street, Los Angeles 90069

817 Alfred after being a stalled construction project for many years, was taken over by a new owner, completed, and put on the market in August 2010. Only one of 18 units is now available. Most units have a 2 bedroom, 2.5 bath layout with 1,400 - 1,700 sq ft. Prices ranged from $599,000 - $749,000. 7 units are recorded as having been closed, with list prices of $453/sq ft and sale prices of $445/sq ft. Sale prices ranged from $625,000 to $729,000.

855 Croft -- 855 Croft Street, Los Angeles 90069

About 18 of 33 units are now sold, and the building is now occupied. The developer is holding firm on prices, and is capturing a higher $/sq ft than competing projects (although the units are selling at a slower pace). All non-penthouse floorplans have 2 bedrooms, 2.5 baths, 1,450 sq ft with a 107 sq ft deck. Prices range from $689,000 for a 3rd floor unit with obstructed views to a $1,449,000 sq ft penthouse. It is noteworthy that one of the penthouses listed at $1,390,000 sold for $1,240,000 or $675/sq ft.

See a video walk-through of a Penthouse unit:

Read our previous post on 855 Croft:

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

123 N Kings Road, Los Angeles, CA 90048

This Beverly Center-area 12-unit complex, variously known as "Two Kings", "Kings on Kings" ("One and a Half Kings" anybody?) sold in receivership in the winter of 2010-2011, with sale prices ranging from $545,000 to $645,000. The location of this building across from the Kings Road Cafe and down the street from some of the best restaurants, cinemas, and shopping, can't be beat.

This amounts to a $401/sq ft list price and a $390/sq ft. Funny that two years ago these units had list prices of $949,000 - $1,185,000. These units finally cleared at market prices that are likely at or below the developer's construction cost.

Read our previous post on 123 Kings:

123 N Kings Road - Boutique Lofts Near the Boutiques

Legendary Place - 1411 N Detroit Avenue, Los Angeles, CA 90046

Legendary Place came on the market more recently and has enjoyed steady sales. List prices are $411/sq ft, closing prices are $388/sq ft. A penthouse units sold for $975,000 and the least expensive unit sold for $550,000.

Orange Grove Lofts - 1220 N Orange Grove Avenue, West Hollywood 90046

The Lofts at 1220 N Orange Grove Avenue (nee 1220 Art Lofts) was a building that failed to sell as a traditional sale in 2009, went into receivership, resulting in deeply discounted prices and about the lowest $/sq ft sales in West Hollywood for a high-quality product. These 2 br, 2.5 ba multi-level units had Bertazzoni ranges and other high-end appliances / finishes and surround a central courtyard. They are located down the street from Whole Foods just east of Fairfax. Sale prices for the approx. 1,900 - 2,000 sq ft units ranged from $665,000 - $815,000, an average of $370/sq ft and $716,000 per unit. Note that in its previous incarnation as 1220 Art Lofts, list prices averaged $850,000.

Read our previous post on 1220 N Orange Grove Avenue:

Spacious Art Lofts @ 1220 Orange Grove Avenue - West Hollywood

Hancock Lofts - 901 Hancock Avenue, West Hollywood, 90069

Mercury must have been in retrograde when the development execs at Lee Homes set out to build, market and sell what was certainly the most awaited project in West Hollywood, the Hancock Lofts. Located in the center of Boystown in West Hollywood, this hip, 31-unit project had everything going for it: loft design, great pool, and an unbeatable location. But with stratospheric asking prices of $900,000 - $1,400,000, it was no surprise that only two units sold. About a year later, the developer chose to "sell" 15 units at "auction", with ridiculous teaser prices of $395,000. The auction proved to be a free-for-all where buyers' low offers were countered at stratospheric levels. Two years later, some of the units are for lease with stratospheric list prices of $4,900+/month. In better times, some of these units are destined to creep back on the market for sale. In the meantime, you can lease with a much lower risk (and cost) than owning.

Read our previous posts on the Hancock Lofts:

Luminaire - 928 Croft Avenue, Los Angeles 90046

Buyers liked the 12-unit Luminaire from the start and the building sold quickly at an average price of $797,500 and $428/sq ft. The 1 bedroom top floor unit at $550,000 seemed like a particular bargain. These well-appointed units included bathrooms with Grohe fixtures, and kitchens with Bosch appliances, except the cooktop which is a cool Italian design by Smeg. Kitchen cabinetry is by Gatto Cucine, an environmentally friendly, modular cabinetry system from Italy. You may be lucky enough to one day get a unit here on resale.

May 2011: Housing Market is "Flat" and "Stable" in Sunset Strip - Hollywood Hills West, West Hollywood, Beverly Center - Miracle Mile, and Hancock Park - Wilshire; Sailing in the Doldrums is Better than Sinking in the Dinghy

2011-05-18T10:10:00.000-07:00

Keller Williams Hollywood Hills @ The Directors Guild Building

Our Keller Williams office has just relocated to the ground floor of the Director's Guild Building at 7920 Sunset Boulevard in Los Angeles, between Crescent Heights and Fairfax. Very convenient if you want to catch a screening after work -- with some of the plushest, red velvet seats in LA! Many may know the Griddle Cafe next door, that does a booming busines, and has some of most savory (and spicy) chili in town.

Periodically we like to check in on the residential real estate market in our own backyard. The neighborhoods nearby that typify this "middle" slice of the city are Sunset Strip - Hollywood Hills West, West Hollywood, Beverly Center - Miracle Mile, and Hancock Park - Wilshire. We've done a little "data mining" to try to make sense of the market, and here are our conclusions:

1. Prices have been flat for two years and show no signs of increasing. The median price of a home in this area was $1,335,000 in January 2008, and now stands (according to trendline) at $1,165,00 -- a drop of 13% in 2.25 years. Note that in the Spring of 2009 prices were already at current levels. Large price drops have already occurred; no real price gains are anticipated. It's our best guess that prices in this price range will not change much over the next year, since real estate markets tend to "bottom" over a long period of time.

2. The market has been "tightening" since its low point, the Winter of 2008 - 2009, in the depths of the financial crisis. The chart above covers the percentage of homes under contract from January 2007, when the market was still "hot" (and many would say, "overheated"), to April 2011. The number of homes in contract stands at a robust 11 - 12%, at levels not seen since the heady era of "no documentation", "liar loans".

3. Sales volume has stabilized. The chart above illustrates a 12-month moving average of sales, which has been level for about one year. We are going through a period when there are neither large declines nor large increases in sales of homes.

And how does this "flat", "stable" market feel? Like being adrift in the Doldrums, that belt of "calm and light baffling winds north of the equator". In this "stable" market there isn't much "wind in the sails" to compel buyers to buy or sellers to sell. Sellers find it takes a long time to market and their property, because buyers have no urgency to purchase. But, better to be adrift than in the dinghy with one oar as we were during 2008-2009.

JUST REDUCED to $469,000: 906 N Doheny Drive #306, West Hollywood, CA 90069 - Adner Realty Group presents a 2 br, 2 ba condo at the Border of Beverly Hills

2011-05-11T08:59:00.000-07:00

Jamie Adner and Luke Jones of Adner Realty Group at Keller Williams are pleased to present a 2 bedroom, 2 bath condo at 906 N Doheny Drive, Unit #306, which has just been reduced to $469,000 (updated May 13, 2011).

What we really like about this unit are the many upgrades that include travertine floors, crown molding, granite counters and stainless steel appliances in the kitchen, and Italian tile in the baths. Homeowner's dues are low at $364/month, and the building also has a beautiful pool.

Unit #306 comes with two tandem parking spaces, and has two balconies and a gas fireplace (for those cold California winters.)

Doheny Drive is the border between West Hollywood and Beverly Hills and means Westside destinations and points further East are equally accessible. Restaurants, shopping and a plethora of amenities are all at your doorstep.

FHA Modifies Loan Formula: Higher Mortgage Insurance Rates adds Cost to the Excellent, Low-Downpayment, Low-Credit Score FHA Loans

2011-05-10T09:22:00.000-07:00

The Federal Housing Authority (FHA) periodically recalibrates the way it charges for the excellent, low-downpayment, low-credit score loans that it backs. On April 18, the FHA increased the fees for mortgage insurance (MI), from .85% to 1.1% (for 5% downpayment or higher) and .9 to 1.15% (for downpayments less than 5%). The one-time mortgage "points" (fees) that FHA charges for obtaining the loan is unchanged at 1.0% of the loan principal.

What is the monthly cost of owning a home purchased with an FHA loan? Let's take the example of a $500,000 home purchased with a 3.5% downpayment.

Downpayment = 3.5% x $500,000 = $17,500
Mortgage points = 1.0% x $500,000 = $5,000
Closing costs = $3,000 (estimated, this could vary)

FHA allows the Buyer to roll the mortgage points and closing costs into the loan principal. In this case, the loan principal is $482,500 (96.5% of the purchase price) + $5,000 + $3,000 = $490,500. At today's interest rate of 4.875% (still near historical lows), the monthly mortgage payment is $2,596.

The monthly "nut" for this $500,000 home:

Principal and interest (P & I): $2,596/month (during the first year, about $615 of this is principal, the rest is interest; still, you are paying off $7,400 of the loan balance in the first year!)
Mortgage Insurance (MI): $470/month (calculated using the FHA rates)
Hazard (fire) insurance: $80 (estimated)
Property tax: $521/month (in Los Angeles county, this amounts to approx. 1.25% of home sale price, which is paid annually; this may vary due to differing tax levies in different areas)
Total: $3,667/month

Given the belt-tightening in Washington and the greater risk of default of these loans, they may one day (soon) go the way of the "no doc", "negative amortization" and "options ARM" loans. Buyers should take advantage of buying opportunities in the market today, while this excellent buying "constellation" fueled by cheap government-backed money still exists.

Read the New York Times article about FHA loan rate changes.

Los Angeles Apartment Vacancy is 4.9% Entering 2011, down .5% in 9 Months -- First Vacancy Decline Since 2002 -- Westside and San Fernando Markets Tigthen Considerably, Reversing Trend

2011-05-09T13:11:00.000-07:00

Things are looking up for Los Angeles apartment owners when it comes to vacancies. The average apartment vacancy in the city of Los Angeles declined from 5.4% in March 2010 to 4.9% in December 2010 (the most recent date for which data is available), a .5% drop.

Also note that the increase in vacancy rate was nearly unabated from 2002 - 2009. The tide has turned, and the vacancy trend has reversed.

Considering the weak overall economic recovery and the persistently high jobless rate in Los Angeles City and County, this reduction in vacancy is a bellwether for improving multifamily fundamentals in Los Angeles.

The vacancy breakdown of the four geographic areas in December 2010:

Central Los Angeles: 5.2% (down .3% since March 2010) -- 416,000 units
San Fernando Valley: 4.4% (down .8% since March 2010) -- 224,000 units
West Los Angeles: 6.1% (down 1.0% since March 2010) -- 116,000 units
Harbor Area: 4.0% (up .1% since March 2010) -- 31,000 units

The largest district, Central Los Angeles, includes neighborhoods like Wilshire (95,000 units, 4.7% vacancy, down .7% since March 2010), Hollywood (75,000 units, 5.0%, down 1.1% since March 2010), South Central (49,000 unit, 7.2% vacancy, unchanged since March 2010) and Silver Lake / Echo Park (18,000 units, a low 4.4% vacancy, down .3% since March 2010.) The lowest vacancy was recorded in Boyle Heights (3.6, down .2% since March 2010).

The second largest district, the San Fernando Valley Area, includes North Hollywood (42,000 units, 4.8% vacancy, down .3% since March 2010), Van Nuys (37,000 units, 4.3% vacancy, down .8% since March 2010) and Sherman Oaks-Studio City (23,000 units, 4.5% vacancy, down .8% since March 2010). The lowest vacancy was in Pacoima - Sun Valley (5,000 units, 3.3%, down .6% since March 2010).

West Los Angeles, the third largest area, includes Palms-Mar Vista-Marina del Rey (35,000 units, 3.9% vacancy, down .9% since March 2010), West LA - Century City - Rancho Park (30,000 units, 4.3% vacancy, down 1.0% since March 2010), Westwood (15,000 units, 5.2% vacancy, down 1.4% since March 2010), Venice (13,000 units, 9.1% vacancy, unchanged since March 2010) and Westchester-Playa del Rey (12,000 units, 6.9% vacancy, down .8% since March 2010).

The Harbor Area, includes San Pedro (14,000 units, 4.3% vacancy, down .1% since March 2010), Wilmington-Harbor City (10,000 units, 3.2% vacancy, up .2% since March 2010) and Torrance-Gardena (7,000 units, 4.9% vacancy, up .1% since March 2010).

Our conclusion? The rental market across vast swathes of Los Angeles is becoming tighter and flipping from one favoring tenants to favoring landlords.

Consider that 65,000 units of Westside rental stock (Palms-Mar Vista-Marina del Rey, West LA - Century City - Rancho Park) is averaging 4.1% vacancy down a full percentage point from nine months earlier. 60,000 units of San Fernando Valley rental stock (Van Nuys, Sherman Oaks-Studio City) is averaging 4.4% vacancy down .8% from nine months earlier.

Vacancies in the 4.1 - 4.3% range is a tight market, and the drop in vacancies has been precipitous during the nine month period.

Also, consider that multifamily construction in Los Angeles County has virtually ground to a halt for the past 2.5+ years (see chart of Los Angeles County multifamily building permits above). There are few new buildings coming online and virtually no vacant land to build on, meaning the supply of units in the future will be constrained.

See our Blog Post from May 14, 2010 on Los Angeles apartment vacancy rates.

Data comes the Department of Water and Power (LADWP) and its records on individually metered apartments. We consider this the best reflection of the market, although it does not cover records from the cities of Santa Monica, Beverly Hills, West Hollywood, etc.

Adner Realty Group @ Keller Williams Sunset presents 2500 S Abbot Kinney Blvd #3 - 2 br, 2.5 bath condo in Prime Venice - Offered at $529,995

2011-05-06T16:56:00.000-07:00

It's Friday here in Hollywood, California, the time when, like our brethren at the studios, we debut our latest releases. Adner Realty Group is pleased to present a one minute video featuring 2500 Abbot Kinney Boulevard in Venice, California 90291.

This 2 bedroom, 2.5 bath condo has 898 sq feet and is located in located in the heart of Venice and is priced at $529,995.

This breezy unit has private balcony, in-unit washer/dryer, good storage, two tandem parking and spacious communal areas. Yards from the French Market Cafe and all the bars and restaurants of Abbot Kinney.

Abbot Kinney has iconic status, representing the grit, the haute tastes, and the down-home kick-back funk of this bourgeois bohemian beachside community. A great address to call home.

A Beachside Starter Pack for a New Family: Finding that Perfect Single Family Home Under $1 million in Venice, Culver City and Marina del Rey

2011-05-04T13:34:00.000-07:00

This is a post by Luke Jones, who joined Adner Realty Group at Keller Williams Sunset as an Agent in January 2011. We congratulate him on his wedding!

I recently took the plunge and got married (whooohooo!!) so now, naturally, my mind suddenly turns to finding that perfect first home together. With so many Single Family Residences (SFR’s) in LA, the choice is endless. But a few things stand out when making that decision about where to ‘nest’; room to expand when the time comes; a good space for entertaining the in-laws; a little privacy for when your betrothed drives you mad (I’m told that happens); and a good size master where all the magic happens. Add to that the fact that you’ll want parking for two cars and a bit of yard to pretend like you have green fingers and all of a sudden what might seem like a glut of choices, is actually reduced down to a more manageable amount of properties.

This week, I’ve decided to target the Venice / Marina / Culver City area trying to find that perfect place under $1 million. Here’s what I found:

First up is 125 Breeze Avenue in Venice (90291), a cute craftsman cottage on a nice Walk Street between Main and Pacific. This rustic property is a decent size for a traditional craftsman with 1,137 sq ft on a 2,200 sq ft lot. It’s got an open plan feel with oak flooring throughout. The master bedroom is well proportioned and the guest room is a good size for an infant (or a study room w/sofa bed if waiting is your game!) What makes this property cool and unusual is the spacious loft area that runs the length of the house that could be easily converted into a slumber party area for the kids or a private space for the adults. The property also benefits from a decent-size basement where the handyperson of the household can store their toys and tinker away for hours. Priced at an ambitious $1,085,000, I wouldn’t be surprised if it ended up selling in the low-to-mid $900K range…

Next up is 823 Howard Street, Marina Del Rey (90292), near the corner of trendy Abbott Kinney and Washington Blvd. This contemporary beach home is compact at just over 1,000 sq ft, but benefits from well-proportioned rooms and a nice size yard. The master bedroom has great built in cupboards and is at the back of the house with a smaller office / den / 3rd bedroom just off of it giving it a certain amount of privacy and seclusion. The second bedroom is well sized too with the guest bathroom just next door. It’s very modern throughout with custom counters and stainless steel appliances. What is most appealing is the price, compared to 125 Breeze Avenue. At $759,000, it’s a lot more affordable and whilst it’s not on a Walk Street or in a traditional craftsman style, it benefits from being in a quieter neighborhood with ample street parking and is merely a stone's throw from pricier Venice to the north.

Heading further east towards Culver City, the prices start to drop and the square footage starts to rise! 4319 Campbell Drive in Los Angeles (90066), a 3 bedroom, 2.75 bathroom home on an enormous 5,800 sq ft lot, priced at $698,000, has opportunity written all over it. From the outside it looks like a charming, old-fashioned, traditional home with terracotta roof, but inside it has been modernized to feature stone flooring, custom cabinetry and new doors and windows throughout. The interior is neutral and it wouldn’t take much to restore it to something more contemporary and trendy in style. As with quite a lot of these 1920s homes, the ceilings are low but the rooms are well proportioned. There is a large work space / converted garage out back and a large yard with room for a hot tub or small pool. Given that Culver City is only 10 minutes from the beach and has some great new bars and restauarants, this property feels like a great starter pack for a new family.

If modernization and a refurb is something you’d like to try your hand at, then what about 4221 Neosho Avenue in the Palms / Mar Vista neighborhood (Los Angeles 90066), priced to sell at $649,000. It has all the original features from this cottage-style period including crown moldings and built-ins, large brick fireplace, and vaulted ceilings. However, whilst the property is technically move-in ready, it will need a new roof, electrical, and serious TLC. Also, one other downside is that it currently only has one bathroom. However, with an oversize lot that screams for a hot tub and a detached garage with bonus workshop space, this represents a lot of "bang for your buck".

So, what I hope I’ve conveyed from these four very different listings is the sheer range of properties that are out there. From the beach lifestyle, to the white picket fence suburban dream, to the rustic fixer upper from bygone days, there is something for every taste, disposition and wallet.

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Have a question about the buying your first home or "moving up the property ladder"? Please call Luke at (310) 435-4774 or email him by clicking on this link.

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For Sale: 949 N Kings Road #201 - $649,000 - 3 br, 2 ba condo in central West Hollywood - See the Video of Adner Realty Group's West Hollywood Listing

2011-04-21T19:33:00.000-07:00

(click video to play)

West Hollywood is the most densely populated city west of the Mississippi, and space here comes at a premium. Adner Realty Group's West Hollywood condo listing at 949 N Kings Road #201 suffers no lack of space and has 3 bedrooms, 2 baths and 1,598 sq ft of living area, more square footage than many single family homes nearby.

A generous living room leads to a dining area, galley kitchen, breakfast nook and large balcony that looks across Kings Road onto greenspace.

Master bedroom has bath en suite with dual sinks and shower, and includes two large, walk-in closets outfitted with shelving.

Drumroll, please, this condo a valet's dream. The unit comes with four parking spots. And please call our office at (310) 845-6810 for more information.

Ten Million Dollar Listing: Episode 2 - Jamie Adner and Luke Jones Tour Three Classic Hollywood Hills Homes -- Come Ride with the Adner Realty Group @ Keller Williams, West Hollywood

2011-04-04T11:42:00.000-07:00

In Episode 2 of "Ten Million Dollar Listing", Jamie and Luke househunt in the Sunset Strip neighborhood of the Hollywood Hills.

Since the 1920's, when Sunset Boulevard was a dirt road going from Hollywood to the Beach, the Hills has been one of the city's preferred playgrounds -- with many an incredible estate (or folly) constructed by the city's imaginative architects.

Touring Three Classic Hollywood Hills Homes...

First up, "Old Chestnut" -- 8650 Franklin Avenue,, listed at $2,295,000. This 4 bedroom + 4.5 bath home has an incredible pool and spa with views the city and has all the charm of a 1939 MGM Musical.

Then we're off to..."Connecticut in LA" -- 9237 Flicker Way, listed at $4,050,000. In the desirable "Bird Streets" neighborhood, this of-another-era 15-room 1938 traditional has beautiful hardwood floors, crown molding, an expansive lot, and views to Catalina.

Finally, we stop above the Sunset Strip at "Urban Hideaway"-- 1444 Queens Road, listed at $1,595,000. 1959 contemporary has saltwater pool, 4 bedrooms + 3 baths, a private retreat in the heart of the city.

More About the Sunset Strip - Hollywood Hills West...

(click image to enlarge)

In the big picture ...

Prices in the Hollywood Hills have been driven back to 2003 - 2004 levels as the boom of 2007 recedes in the rear view mirror. The median sale price in 2010 was $1,100,000, down 28% from the peak of the market.

On a positive note, prices are stable: prices in the Sunset Strip - Hollywood Hills West declined only 2.7% from 2009 and 2010. There continues to be a steady stream of short sales and other distressed properties coming to the market, but the opportunities to purchase deeply discounted quality homes through trustee's sales (foreclosure auctions) or other channels has largely passed.

(click image to enlarge)

In the small picture ...

The chart above shows the "months' supply of inventory" of homes in the Sunset Strip-Hollywood Hills West over the past 12 months. In March 2010, there was 8.6 months' supply of homes. In March 2011, there was 6.4 months' supply of homes. This is an indication that the market has "tightened up" in the past year, that more homes are going into contract and fewer homes are coming on the market.

Recent market trends are hallmarks of a stabilizing market. We are riding along the bottom of market where for some time the market may be little changed (coming as a relief to many).

New Listing: The Lofts @ Hollywood + Vine #307 - 2 br, 1.5 ba, Loft Living, High-Style, and Views of the Capitol Records Building. Offered at $482,500.

2011-03-22T09:47:00.000-07:00

Adner Realty Group is pleased to present our newest listing in the new the Lofts @ Hollywood + Vine at 6253 Hollywood Boulevard. This spacious, loft-like, two-level unit couples fine architectural details and superior finishes with iconic views of Hollywood Boulevard and the Capitol Records building. Lower level features kitchen with Viking appliances, open living area, half-bath, and laundry. Updated 5/5/11 -- And what's better, the price has been reduced to $482,500.

Designer metalwork stairway leads to upper level with two bedrooms and bath with Ann Sacks tiles. This unit is accented with polished concrete floors, has high ceilings, and can function as a live-work space. Building amenities include 24-hour security, valet parking, and private roof garden.

The Lofts @ Hollywood + Vine is located near the high-profile W Hollywood Residences, Katsuya, and other destination hotels, restaurants, and entertainment spots. This converted 1929 building combines the understated elegance of the Silent Movie era with an exclusive, front row seat to the excitement of Hollywood.

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Have a question about the Lofts @ Hollywood + Vine or other properties? Please call us at (310) 845-6810 or email us by clicking on this link.

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Ten Million Dollar Listing: Episode 1 - Touring West Hollywood Pool Homes, Top Floor Penthouses at Sierra Towers, and a Mediterranean Estate in Beverly Hills

2011-03-14T10:10:00.000-07:00

We think we've got a pretty fun job. In the first installment of an on-going series, Ten Million Dollar Listing, Jamie Adner and Luke Jones tour four luxury properties in the West Hollywood - Beverly Hills area. Our sojourn includes:

838 N Orlando Avenue, West Hollywood - a magnificent compound with house, guest house, studio and pool set on a large 12,500 sq ft lot right in the center of WeHo. Listed at $2,195,000.

8719 Rosewood Avenue, West Hollywood - a sophisticated two story home, very well located near Robertson Boulevard, with 3 bedrooms, 3.5 baths and a sparkling pool. Listed at $2,550,000.

Sierra Towers - 9255 Doheny Road #3105 and #3103 - Two top floor units (1 bedroom + 1.5 bath, 1 bedroom + 2.5 bath) in the Sierra Towers, a landmark building at the West Hollywood / Beverly Hills border. Classic style with incredible, jetliner views. Listed at $3,495,000 an $2,495,000.

2576 Bowmont Drive, Beverly Hills - a sprawling, magnificent 6 bedroom, 9 bath Mediterranean estate with one of the most incredible infinity pools -- and settings -- in the city. Listed at $17,900,000.

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Jamie and Luke have their finger on the pulse of the Los Angeles luxury market. If you have questions about these or other properties, please call us at (310) 845-6810 or email us by clicking on this link.
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2010 West Hollywood Market: Single Family Market Off 29% From 2007 High; Median Condo Price Unchanged from 2009 to 2010. Establishing the Foundation for a New Market Bottom?

2011-01-22T10:35:00.000-08:00

West Hollywood - Single Family Market
In 2010, the single family home market in West Hollywood took another step down in price to a median of $779,000. Since the market peaked in 2006 - 2008, the median sale price has declined 29% and now stands at 2003 - 2004 levels. In our opinion, the market that has spiralled downward for the past two years is establishing the base for a new market bottom. But for now, the only apparent trend is a steady decrease in median price.

In the long run, West Hollywood real estate has been an excellent investment. Since 1996, the median sale price of a single family home in West Hollywood has increased 214% in value, from $248,000 to $779,000. Consider that the S & P 500 has increased only 86% during the same time. Also, consider that with a $50,000 downpayment in 1996 (and a 30-year fixed loan), a buyer of a median-priced home in West Hollywood by 2010 could have created $625,000 of equity, an outstanding return by any measure.

Timing is everything, and the short term story differs greatly from the 14-year "buy and hold" strategy portrayed above. The value of a home purchased in West Hollywood after mid-2003 is likely below the original sale price. The market appears to be in the process of bottoming out, and these homeowners in the future have the potential to recoup their losses, but for now they're "underwater" with regard to their purchase price.

What led to the huge run-up in prices in 2005 - 2008? Easy jumbo loan financing, which allowed buyers to obtain loans greater than $729,750 with stated income (affectionately called 'liar loans'), fueled the buying boom during these peak years. During this heyday, a buyer could obtain a loan to purchase a million dollar home with no verification of income or assets. Is there any surprise there was a real estate bubble?

Now, jumbo loans are nearly impossible to obtain, and financing a million dollar home entails putting down $270,000 and obtaining the maximum $729,750 "jumbo conforming" loan. Since a 25%+ downpayment is required to make this purchase, the buyer pool has dwindled vs. the days when little or no downpayment was required.

The 29% drop in prices since the boom reflects: (1) borrowers' weakened financing following the economic crisis; (2) greater downpayment requirements for some loans; and, (3) tightened loan underwriting guidelines, which has eliminated many aspiring buyers from the purchasing pool because they can't qualify for a loan.

West Hollywood - Condo Market

The condo market in West Hollywood, like the single family market, experienced its peak in 2006 - 2008 and has seen declining prices since that time. In 2007, the median price of a West Hollywood condo was $620,000; in 2010, it stood at $499,000, a decline of 20% in median value.

Because of their lower price point, sales of West Hollywood condos were much less impacted by the unavailability of jumbo loan financing than single family homes.

One important point to note is that the median price of a West Hollywood condo was virtually unchanged from 2009 to 2010 (a decline of a mere $1,000). We see this as an indication that the West Hollywood condo market has now stabilized. Barring huge increases in interest rates, will believe there will be no further price declines in 2011. The pervasive, negative buyer sentiment is perhaps out of line with a market that is recovering.

We hate to mix metaphors ... but we'll do it anyway. Our assessment of the West Hollywood condo market: we are far from "out of he woods" but buyers should now finally be able "to see the forest for the trees."

Touring Architectural Homes in Venice, California: Minimalist Aesthetic Meets Maximalist Price Point

2011-01-13T09:54:00.000-08:00

This is a post by Luke Jones. Living in Venice one can’t fail to notice all these funky looking buildings and be curious to know what they’re like on the inside – so today I checked out the latest Architectural listings on the Venice market.

The first thing that struck me about this style of home is that there are so many things you can get wrong! Firstly, it’s easy to make an architectural home feel cold and sparse. It’s also easy to make it feel cluttered or unfinished. Unless you are a minimalist or are neurotically tidy, or unless you have a bold and radical style throughout, there’s always going to be things that don’t quite fit it. Even down to the shampoo bottles in the bathroom!

So, the first thing to think about when eyeing an architectural home is whether or not your lifestyle will suit this kind of home. The second thing that struck me about looking at architectural homes is that, for all the flair and imagination that goes into this style, it's actually pretty standardized these days. After all, there’s only so much you can do with brushed concrete! The real beauty of an architectural home is how it's possible to juxtapose your own life within the framework of an open space, showcasing your own style to the maximum effect…

The first property in Venice I looked at was the enormous and imposing 333 Indiana Avenue. From the outside, it looks like a rather drab apartment building but as soon as you enter through the heavy doorway, you immediately notice the sense of scale. The first floor, with concrete flooring and a basic kitchen that was obviously put in place by someone who had no intention of cooking, feels like a professional showroom. The master bedroom is bizarrely situated just off the kitchen on the ground floor and apart from the huge entry way / gallery space, and there is surprisingly little room to actually use for dining and seating. Upstairs is the "money shot": a massive open plan studio space with soaring 16 ft ceilings, exposed metal beams, maple floors and skylights – an incredible live-work space. This home is ideally suited for persons with an extensive art collection or someone who wants to work from home. And you’d have to be pretty successful – at $3,350,000 this property doesn’t come cheap. But for the square footage (5,632 ft), it's actually comparatively well priced.

The next property I checked out was at 135 Brooks Avenue. Situated on the busy intersection of Main and Brooks, this corner lot has a more homey feel to it than the first one. The open plan living room / kitchen is quite small and, although it has large windows stretching to the ceiling, since it’s on a small lot in a crowded subdivision, it feels a little gloomy. However, it does have high vaulted ceilings giving an impression of scale. A curiously dark stairwell leads up to the second floor where you have two guest bedrooms, one of which is more suited to being a decent guest bedroom benefitting from large windows looking onto the quieter alley way below and a sizeable walk in closet. The smaller of the two guest bedrooms would be fine for a queen or adequate as an office / study. The master bedroom and bathroom is on the third floor and features a large, walk-in closet and an open-plan feel with curved walls that sweep onto a small, functional roof terrace. This attractive and funky home feels like a starter pack for someone who wants to dip their toe in the architectural lifestyle without having to contend with big open spaces or imposing architecture. I think it’s overpriced at $1,595,000 or $844 / sq ft, but with parking for 3 cars and with 3 bedrooms, perhaps one could rent out a room to a lodger.

Next up is a condo with a town house feel. Based on another busy intersection (Brooks and Pacific), number 49 Brooks Avenue is a large, bright unit in an eye-catching condominium block. A stone's throw from the boardwalk, this has an urban feel to it (urban by Venice standards, that is), but with your own entrance, you’d forget that you’re in a shared co-op. There is plenty of natural light throughout, and there is a bright gourmet kitchen with a large island as the main feature of the room. This is an entertainer's house, no doubt, and the entire layout and vibe feels very welcoming, fresh and breezy. The bedrooms are well-proportioned and the master bedroom has a fabulous corner window that looks towards the sea and the mountains. Furthermore, the unit features its own private balcony with 360 degree views and a wood-burning fireplace. With parking onsite for two cars and a clean, modernist exterior, this certainly has the feel of a single family architectural home but with the price of a condo. At $1,475,000 or $636 per sq ft, this is a bargain compared to the previous property at 135 Brooks. The big drawback is the proximity to the busy street -- but that only adds to its urban feel.

A little ways down pacific and set back from the busy street on a quiet walk street is 35 20th Street. At $1,295,000 this 2,000 sq ft lot is currently divided into a duplex giving some rent return on your investment. But this is where the good news ends. This very peculiarly designed architectural home feels clustered and confused. Whilst it features a nice front yard on a peaceful walk street and even though it fits in perfectly with all the other eclectic homes in the neighborhood, it all feels very over designed. Strange cabinetry at odd angles make rooms feel cramped; tiny bathrooms with barely room to swing a cat feel like they’ve been designed without any thought for luxuriating; and, annoying metal spiral staircases that creak and groan as you walk noisily up them make the place feel like you’re in a half-finished experiment. Also - and this is an observation of mine as someone who used to live on a walk street – as nice as it is to have the pedestrian walk street on one side, you have to remember that you’ve got the drug ridden, trash-can strewn, urine-smelling alleyway on the other side. No, sadly this one wasn’t for me. But then again, if living close to the beach with all the action in a quirky, crazy home is your cup of tea – check it out.

So, feeling a little dismayed, I made my way back home via one last property on California. Another world from the beach side of Venice, this is towards the Lincoln end of Venice. Immediately seeing that it was bang opposite a busy high school, I was expecting the worst. But lo and behold, it turned out that this was the best home I’d seen all day. No 844 California Avenue, with 3 bedrooms, 3 baths, 2 car garage, nice yard, roof deck with 360 degree view and warm open layout with distinguishable areas makes this an all-in-one hit and at $1,445,000, comparatively a bargain in relation to the previous property that had so many things wrong with it. This stunning home has a warm, inviting feeling with impeccable style. The rooms are well-proportioned and with bright, maple floors throughout there’s both an air of continuity but also individuality. The drawbacks to this property are: (1) the proximity to the school, which would be a noise nuisance during the week; (2) heavy traffic; (3) the fact that it is not situated in the heart of Venice but nearer hectic Lincoln Blvd. Weighing these downsides against the sensible pricing and terrific design and proportions, I think this architectural home perfectly achieves the balance of modernism, space and warmth.

Real Estate Predictions 2011: A View from Los Angeles - Panic, Capitulation Plus a Whiff of Despondency?

2011-01-10T11:51:00.000-08:00

Best wishes for 2011.

We are certain this is going to me another incredibly exciting year in real estate in which the war-torn, battered and weary sellers are embattled with enterprising, arriviste, opportunistic buyers, creating price and terms clashes of epic proportions.

2011 will be the 2012 of property transfer, in which short sales, foreclosures, receiverships, bankruptcies and various and sundry other forms of financial and legal "work-out" are the norm rather than the exception.

2011 may even be the year of Capitulation (see the Sentiment Cycle above). Long-term bearish sentiment has left not one optimist in the room -- time to "throw in the towel."

2011 may even possibly be the year of Despondency ("how could I have been so wrong?"), the inflection point setting the stage for the next cycle of price increases.

But maybe not. 2011 may have a whiff of Fear, Desperation, Panic ... and dare we say, Hope?

In whichever direction the market heads, Adner Realty Group will be ringside, ready to chronicle the Los Angeles real estate scene.

And how did our 2010 predictions hold up? (See our December 31, 2009 post "8 Real Estate Predictions for 2010 - Kissing the Bottom Goodbye - From Panic to Hope and Beyond") We'd give ourselves about a 6.5 out of 8. To recap:

Interest rates will rise. WRONG. Our biggest mis-prediction. Interest rates fell to an astonishing 4.375% for 30-year fixed loans, a low since records were first kept 40 years ago.
The bottom of the market for first-time buyers will soon be past us. RIGHT! Prices in 2010 were higher than the ultra-low prices of 2009 when buyers fled the market en masse.
Prices will continue to decline on the high end ($1.5 million +). RIGHT! Jumbo loan financing was scarce, and the abundance of short sales and foreclosures drove the market down.
Foreclosures and short sales will become pervasive in all segments of the market. RIGHT! Just because a house costs $2 million doesn't mean it's immune from foreclosure.
Over-priced new construction will become less so as developers are forced to chop their prices. RIGHT! The only way sellers could move the inventory was through red ink.
Getting a loan will be tougher than ever. RIGHT! Underwriting standards tightened considerably leading to delays in most closings.
Investors will benefit as properties trade hands at generational lows. HALF RIGHT. Multifamily prices are off their lows; industrial prices are flat; but hotel and office sectors have not attained market bottoms.
Real estate will begin reverting to its role as a safe, predictable asset class. RIGHT! Heard any "get-rich" schemes in real estate recently?

We live in remarkable times, in which lows attain new lows, dire gets direr, conflicting indicators jam the airwaves and defy easy interpretation. Although these times seem extreme, Southern California real estate has a century-long history of careening booms leading to colossal busts. This remarkable time happens to be "the Big One".

Multifamily Sector Leads the Charge Back into the Investment Property Market; Buyer Confidence Rises By Leaps and Bounds; Market Hits Inflection Point: "Buy Now!"

2010-11-29T09:43:00.000-08:00

We at Adner Realty Group have noted a strong uptick in multifamily investor interest in the past couple of months.

Up until this time, investor sentiment had been decidedly negative, with expectations being that the economy would worsen, cap rates would increase, inventory would improve, and seller distress would pervade the market.

The economy is doing no more than flat-lining, but with little apparent change in cap rates, inventory, or seller distress, investor activity has spiked, despite our being several years into the 'more of the same' market.

What is the cause of this change? It could be buyer fatigue and impatience. Loaded with cash, with no other attractive investments on the market, buyers are 'throwing in the towel' and accepting 5 and 6 caps (and on an exceptional day, for larger assets, 7 caps), rather than waiting for the mythical day when quality multifamily assets are trading at higher levels.

It could also be foresight that we are on the cusp of an economic recovery. Unemployment and vacancy rates have leveled, and if market fundamentals are not deteriorating, then why not tiptoe into the market?

Lastly, it could be fear. In a world of defaulting nations abroad and quantitative easing at home, bricks, mortar and fully rented assets in the always-in-demand Southern California region seems like an attractive place to sock away cash, especially when you can lever up to 75% of the purchase price.

Although our observations on the market are purely anecdotal, we've read press that supports our sentiment that investor confidence is on the rise.

Loopnet's Q3 2010 reports that investor activity has risen, with multifamily leading the charge:

In Q3, overall sales in Los Angeles increased 46% compared to the prior year. Over the last 12 months, the price per square foot for office property is down 1%, multifamily is up 10%, industrial is down 9% and retail is down 37%.

The multifamily sector in Los Angeles is the only sector to enjoy price increases, and a whopping 10%, at that.

The improving outlook in the multifamily sector has been echoed by Marcus & Millichap Real Estate Investment Services:

What a difference a year makes. Twelve months ago, real estate players with money in pocket were hesitant about making purchases, but now confidence is on the upswing and they have become increasingly acquisitive.

Approximately 55 percent of those surveyed for the report say the market is ripe for snapping up apartment properties, while only 32 percent believe now is the time to buy retail and 26 percent are keen on hotel and mixed-use assets.

The emergence of multifamily as the investor flavor of the year comes as no surprise to Marcus & Millichap. “Traditionally, you would expect apartments to see recovery first because the leases are short-term and as the economy picks up, people rent more; that has been the classic recovery pattern for many, many cycles."

While the apartment market is following typical patterns, there is one factor that is not so typical. “Not only did the market recover first, it recovered at breakneck speed. It was the strongest upsurge pace we’ve seen in over 10 years.”

Has the market reached an inflection point? We think it has. Our advice to Sellers: consider which assets in your portfolio that you might want to exchange or cash out of now ... the Buyers are out and looking and you may be able to find superior multifamily investment alternatives on the market. Our advice to Buyers: evaluate your cash reserves, and get ready to step up and make strong offers to acquire quality assets. Now is the time, before the market heats up and any Buyer advantage is lost.

Exploring North Santa Monica Homes in Neighborhoods that Rival John Hughes' Suburban Paradises

2010-11-22T20:14:00.000-08:00

This is a post by Luke G-Jones. Santa Monica, famed the world over for its beaches, tourist attractions, pier, and bustling shopping centers, has a diverse and eclectic residential community ranging from enormous beachside architectural homes, to small run-down craftsmen cottages, high-rise condominiums, and modest apartment complexes. Surrounded on three sides by the city of Los Angeles, with Pacific Palisades to the northwest, Brentwood to the north, West LA to the northeast, Mar Vista to the east and Venice to the southeast, Santa Monica has a rich and diverse history that is exemplified in its varied and sometimes non-sensical real estate.

Today, I toured around an area of Santa Monica to the north, close to the border of the Palisades. This area is widely regarded as one of the more upscale and salubrious neighborhoods of the westside. Funnily enough, when I first moved to LA, I lived in this neighborhood in a small apartment building on the corner of 3rd and Montana. To me, it felt like a calm, suburban neighborhood and pretty much summed up my idea of what I thought beach living was meant to be like in Southern California. It feels safe. It's clean and it's the kind of area that could appeal to young professionals who want to live an urban lifestyle with all the benefits of being close to the beach, or to a well-heeled family that requires lots of space whilst having proximity to all the shops and some of the best schools in LA.

First up was 135 Palisades Avenue, just a couple of blocks north of trendy Montana Avenue and a mere half block away from the bluffs of Santa Monica and the beach. This sprawling, magnificently well-proportioned villa is a cross between Spanish, French and modernist architecture with large bright rooms that spill onto a spacious back yard that has been landscaped to include a large lawn area, a tiled patio, and a pool area with a garage / guest house. It has a hefty price tag at $5,961,000, but it's been reduced by around 10%. I really liked this property and with its proximity to the beach and shops on 3rd Street Promenade, I think it has a lot to offer. It features 6 bedrooms and 7.5 bathrooms. The interior design is really cool, with each room having its own distinct style. Whilst quite modernist inside, it seems to blend well with the more traditional Mediterranean architecture throughout.

Next up is 335 24th Street. Much further from the beach, this site feels like something out of a John Hughes movie with its tall conifers and wide, straight roads. The property itself is a Spanish-style home surrounded by lush landscaping, including a carp pond and fountains. There are 5 bedrooms and 4.5 baths with a large open plan kitchen / living room which would make an excellent space for entertaining. There is also a large wine cellar and a spacious family room adjoining the kitchen with French windows out to the yard featuring a stone pizza oven. This house has very particular decor and it’s a little hard to envisage what it would be like empty, but the space is certainly interesting. Whilst large and expansive, it also has a cozy family feel to it. It is on the market for $3,995,000.

After seeing two homes that have that 'lived-in' feel, I took in a couple of brand new constructions. First up was 342 12th Street, once again North of Montana in North Santa Monica. This Mediterranean-style, three-story home features 5 bedrooms and 6.5 bathrooms with a huge basement with a bedroom, game room, media room, craft room and two additional spaces that could be easily customized. The property was entirely staged, but it’s basically a blank canvas. All modern appliances throughout with a full bar in the living room, a gourmet equipped kitchen and fairly spacious back yard with a detached private two-car garage. The odd thing about these new builds is the feeling that they're all just a bit, well, generic. And, it is this real estate agent’s opinion that when one tries to dress mutton as lamb, you run the risk of coming off a bit cheap. Example: throughout the property there are old-fashioned style iron banisters, railings and lamp fixtures. Who are we trying to kid? For me, I'd rather just see an entirely blank space with options to choose the interior design upon purchase. But, I'm splitting hairs. It's still a solid property with lots of potential. Of course, you're paying for the location. $4,600,000 for a mock Spanish home is steep, but if you want something modern and sturdy in a class-A neighborhood, then this one could be for you.

Listed by the same agency and located just a few blocks away is another new build at 534 19th Street. Very similar in design (same bizarre wrought-iron fixtures throughout) and yet without the benefit of the spacious basement below, I'm trying to figure out why this property is $250k more at $4,850,000? Granted, the lot size is bigger and it benefits from an expansive yard that could accommodate a pool, but it’s not nearly as well proportioned and is also further away from the beach. I would say that the kitchen / dining room, facing onto the back yard is a nicer design and since it has not been staged and is completely empty, I think it will be easier for someone to envisage living there. But the same problem remains; it’s a brand new build with no real character. Why would someone pay close to $5 million for something so generic?

So, perhaps I'm not such a huge fan of new builds. Perhaps I'm more attracted to homes with a bit of character and that 'lived-in' feel, but plenty of people want a blank canvas and so there is plenty of that in North Santa Monica. But some people may want more privacy or seclusion, particularly when forking out such a lot of money for a fairly urban environment. I think this is where Santa Monica defines itself. It is a densely populated part of LA that has gone through a boom since the 1980's and is no longer the sleepy little beach community it once was. If you're looking for a secluded compound without feeling like you have neighbors around you, then North Santa Monica may not be for you. But if you're looking for a little bit of suburbia within the center of the city, then North Santa Monica has it all.

Beverly Hills Development Watch: Beverly Hilton Up for Sale, 1953 Hotel Preserved, But Make Way For Luxury Hotel and Residential, and "Last Straw" for Trader Vic's

2010-11-09T11:05:00.000-08:00

Beverly Hilton Hotel - Los Angeles Modernism at Its Best (and Worst)

Updated February 11, 2012: RIP, Whitney Houston, who passed away this afternoon at the Beverly Hilton. Another great artist gone before her time.

Those who live and work in Beverly Hills, Century City, and the Wilshire Corridor pass this 1953 iconic structure at the crossroads of Santa Monica Boulevard and Wilshire Boulevard daily.

At its very best, the Beverly Hilton was the pinnacle of Los Angeles grand modernism back in the smog-cloaked 1950's.

Like many buildings of its vintage, the building has more than once needed a facelift. And as we enter this cyber-age, the grande dame needs more work than ever. Will a Beverly Hills-approved project to remodel the hotel and build condos go forward?

Below ready our article from November 2010 about the $200 Million Sale of the Beverly Hilton

When a neighbor is able to command a pretty penny for their real estate, an owner thinks it may be the right time to tiptoe into the market.

This is precisely what's happening with the Beverly Hilton, the 1953 hotel sited at the corner of Wilshire Boulevard and Santa Monica Boulevard in Beverly Hills.

Last month we reported that 9900 Wilshire, the adjacent parcel and home to the former Robinson May department store, sold for $148 million. Prompted by unsolicited offers for his property, Beny Alagem, the current owner of the Beverly Hilton, has retained Cushman & Wakefield to market this prime wedge of real estate.

The idea is that either a new owner or the current owner will go ahead with a plan that was approved by Beverly Hills voters in 2008 to renovate the original 352 room hotel, and build 110 residential units and a 170 room luxury hotel.

How much will the site command? The current owner paid $130 million in 2003 and then completed $80 million in renovations in 2006. Is it possible that the hotel site will pierce the $200 million mark? There are many hungry players with vaults of cash seeking the best global assets, and the Beverly Hilton is that sort of sweet plum, ripe for the picking. Our hunch is that interest in this unique opportunity will be as strong as a Trader Vic's double Long Island Ice Tea.

The Beverly Hilton is a Los Angeles institution, not so much for its accommodations (its rooms are 4-star), but because of its size (an 8.9 acre parcel in the middle of Beverly Hills!), its prominent frontage at one of the most prominent intersections in the city, and because of its showbiz legacy. Merv Griffin was the previous owner (interesting to note that he paid $100 million for the property in 1987), and the hotel's International Ballroom has been home to the Golden Globes since 1961 and is the site of the Academy Award's Governor's Ball.

Beverly Hilton hotel may get new owner [Los Angeles Times]

Hilton on the Market [Los Angeles Business Journal]

Getting Onto the Property Ladder in Venice: High-Cost Market Tests Affordability, But Owning By the Beach is Better than Owning the S & P 500 by a Country Mile

2010-10-29T09:18:00.000-07:00

This is a post by Luke G-Jones.

Most long-term residents of Los Angeles aspire to climb onto the property ladder at some point. And when they do, the usual tough decisions prevail: “I don’t want to leave the area I’ve come to love, but I can’t afford it”, “I don’t want to have to downgrade in terms of space and I get so much more room by renting”, “If I’m going to buy, I want some outdoor space”, “Will I build some equity in this place over the next few years”… The list goes on and invariably sacrifices will have to be made.

However, with interest rates at 39-year lows (around 4.5%), and with so much distress in the housing market, there are excellent buying opportunities out there. If you are in a stable job, can put down a modest deposit (as low as 3.5% for an FHA loan), are prepared to pay a premium in rent and want to make that all-important step onto the first rung of the ladder, then read on.

First, consider the chart above. In 2000 the median sale price for a home in Venice was $409,000. Even after the real estate gyrations of the past few years, the median price of a single family home year-to-date in Venice is $975,000. That's an increase of 138% over the decade. Long-term renters in Venice may have had affordable rent for the 2000s (and renting does have its advantages), but they missed out on owning their roof over their head, and benefiting from among the most superior investment returns around. Consider that the S & P 500 has delivered a loss of 15% over the past decade (1365 on 10/29/2000 and 1165 on today.)

First up is 126 Vista Place, a picture-perfect Venice Beach bungalow nestled away on a quiet walk street between Main and Pacific. In this blogger’s opinion, these walk streets trump those that head down to the beach by a country mile by virtue of the fact that you don’t get the tourist traffic and there are fewer drivers using Speedway as a rat run. This property is on the market as a trust/conservatorship.

The price has been reduced to a very reasonable $699k. Considering similar properties can often go for around $800-900k, this is quite a bargain. Granted, it could do with a little TLC, but it has a gorgeous little front yard, a good-sized porch, and plenty of parking out back. Having numerous friends who live in the neighborhood and love the walk streets, I know this would be considered a very appealing first-time buy. For not too much more than your rental costs, you could segue into owning a similar-sized home within the same neighborhood and start building equity. There isn’t much room to expand this home, but if you’re sold on Venice, want to maintain the style in which you’ve become accustomed, then I think this one is for you!

If you’re already in expansion mode, check out 1157 Lake Street, a substantial 4 bedroom, 3 bathroom property one block south of Rose and between Walgrove and Lincoln. At $989,000 it’s competitively priced (with 2,000 square feet across a lot size of over 5,000 square foot, it works out at around $500 per square foot of living space) and it has a spacious, light and well-proportioned feel to it. It’s a “flip” with beautiful hardwood floors throughout, a new roof, freshly painted interior and exterior, a garage converted into a spacious den, and new asphalt on the driveway. It’s also a two-story home, which is fairly unusual within this price range. Whilst a million bucks is still a lot for a first-time buyer, you’d be spending around $5k a month to rent a similar single family home.

Unfortunately, whilst this property is close to the outdoor space of Penmar Park and public golf course, it is also under the flight path of Santa Monica airport. Whilst no commercial jets fly out of SM Airport, the noise of those small private charters can certainly distract your swing! However, if you want a piece of real estate, if you can drag yourself east of Lincoln, and you don’t mind the noise of George Clooney’s private Lear jet flying over your house, then this one could be just the thing for you.

If you’re a little more price conscious but still want a bit of space, a yard, room to expand, and an opportunity to do some modest fixing up, check out 1412 Oakwood Avenue. This corner lot south of California and North of Milwood is right in the heart of Venice. I've blogged about it before, it’s been on the market for a while. Again, it’s a good “starter pack” to get your foot on the ladder and with a great front porch and plenty of yard space, it’s a perfect way to play house. It's not got great light in front, and the rooms aren’t too well proportioned, but at $685k it’s a pretty good price. Compared to 1157 Lake Street, you get a lot less "bang for you buck", but if "location, location, location" is your priority and you’re paying around $2,500 per month in rent for a similar style of cottage, then this is definitely something worth checking out.

As I mentioned at the beginning, I’m making some pretty wide assumptions for ye reader: you’ll need to be able to put down a deposit, qualify for a loan, and have a stable income. Unfortunately, gone are the days of mortgage payments being similar to rent. However, if you can stomach an increase in monthly outgoings and you’re ready to pounce, then there’s rarely been a better time to get on the housing ladder.

On The Money: $4 - 12 million Los Angeles Multifamily Sells in Narrow Band of 9.65 - 9.85 GRM in mid 2010

2010-10-27T11:29:00.000-07:00

What's happening in the mid-size apartment category in Los Angeles, those with 40 units or more, and priced in the $6 - 12 million range?

A few very apparent trends: 1) Opportunities are few, with thin inventory reaching market; 2) Demand is strong and buyers are willing to pay a remarkable 97.1% of asking price; 3) Returns for these assets are remarkably consistent with GRMs in the 9.65 to 9.85 GRM range; and, 4) The trend (excluding Beverly Hills, natch) was consistent from Palms, Sherman Oaks, Koreatown/Mid-Wilshire to Hollywood.

Given the attractiveness of the returns on these buildings (cap rates above 6.0%) when compared to other "low risk" investments (like T-bills near 0%), the market dynamics are characterized by a moderate number of well-capitalized investors pursuing a small number of worthy investment properties. The result: quick sales and finely-calibrated returns.

Buyers seeking distressed options in this market should turn their sights elsewhere. Financially robust owners of these assets sell them to other sound buyers -- with an absence of short sales, loan work-outs, bankruptcies, etc. This market segment is stable.

Palms is a perennial favorite for investors who love the Westside location, the proximity to the 405 and 10 freeways, and the below-average 3.8% vacancy rate. 10705 Rose Avenue with 60 units sold for $11,650,000 or $194,000/unit. The building has 62,116 sq ft of living area and was constructed in 1962. This complex has two buildings, is freeway adjacent, and is one of the few multifamily properties of this size to come to this desirable Westside market. GRM was 9.71

Over the hill in Sherman Oaks, 14355 Huston Street, with 74 units sold for $9,400,000. This amounts to $127,000/unit. This 1969 complex is set on 1.38 acres, has a fitness center, swimming pool, and "park like" amenities, and was recently upgraded with $850,000 in improvements. 50 of the 74 units are renovated. The complex has 48,186 sq ft of living area. Unit mix is 72 (1) bedrooms plus (2) singles. GRM was 9.85

530 S Catalina Street in the Koreatown/Mid-Wilshire neighborhood with 45 units sold for $6,200,000. This amounts to $138,000/door. The building has 36,929 sq ft, was built in 1971, and just had $1.1 million in renovations completed in 2007 - 2008. This is on the high-end in terms of quality of upgrades in the Koreatown/Mid-Wilshire neighborhood. GRM was 9.63

At the border of Hollywood and Los Feliz, 1616-1620 Normandie, a two building complex with 46 units, sold for $4,425,000. The larger building is a 1920's "bricker" and the smaller one of mid-century vintage. The sale is at $96,000/sq ft, although the average unit only amounts to 544 sq ft (total is 25,032 sq ft). This multifamily property is adjacent to the high-end homes of Los Feliz as well as Griffith Park. GRM was 9.65

There are exceptions to every rule, and in the Los Angeles market Beverly Hills is that case that breaks the mold. 133 N Almont Drive, near Wilshire and Doheny, sold for $5,775,000 or $304,000/unit. This was a court-ordered sale, the majority of the 19 units are unrenovated (and with below market rents), and average between 1,100 - 1,400 sq ft. In total, the 1961 building has 26,291 sq ft. This Beverly Hills property "tips the scales" in terms of cost per door. The reality is, few assets of this sort are for sale, and like in all other property types, the "Beverly Hills premium" is very much alive and well today.

Silver Lake-Echo Park Home Market Mid-2010: Reservoir-Side Mid-Century Cool Sells Alongside Hillside Bungalow REO Shacks; 25% of Sales Foreclosures or Short Sales

2010-10-22T11:00:00.000-07:00

Silver Lake-Echo Park is one of the most eclectic neighborhoods in Los Angeles, with properties ranging from vintage $1 million + Mid-Century and Spanish homes with views of the Silver Lake Reservoir, to shacks (and we mean shacks) on stair streets in the Echo Park hills with no parking (and virtually no home and no land.)

What Silver Lake-Echo Park offers is a character neighborhoods with a wide range of property types, a funky vibe, and some of the best views and vistas (and twisty, winding streets) in the city.

What has also characterized Silver Lake - Echo Park in the past 6 months is a "hot" market and an abundance of distressed properties (foreclosures and short sales), most selling under $500,000.

On the higher end (the top 25% of sales, homes selling at $715,000 and above), the average days on the market was 27. This is by any standard is considered a highly competitive market in which buyers are forced to view and then write offers on homes without a long consideration period.

A full 25% of sales in the past six months have been distressed properties, presenting a "clearing" of bank inventory and homes owned by delinquent buyers. This market seems to have reached a capitulation point where many sub-prime loans which owners could not afford have now been voided from the market, offering dramatically lower prices for these B- and C-quality properties.

But the A-quality properties are very much in demand, with five homes selling for more than $1 million during the period.

The highest priced sale was 2503 Silver Lake Terrace, adjacent to the Silver Lake Reservoir, which sold for $1,400,000, over its asking price, after 17 days on the market. This 1939 home was updated in 2005 and has 3 bedrooms, 3.5 baths, 2,659 sq ft of living area, an 11,325 sq ft lot, and a 900 sq ft remodeled studio.

Across the Reservoir, in the Moreno Highlands, 2214 Panorama Terrace sold for $1,150,000. This 3 bedroom, 3 bath mid-century home has 2,478 sq ft of living area, a 5,000 sq ft lot, and a pool. It sold after 33 days on the market.

One of the fastest sales was just down the road at 2143 Panorama Terrace. This ultra-cool 1953 mid-century sold for $1,136,750 after only 7 days on the market. This home has 3 bedrooms, 2 baths, 5,170 sq ft of living area and a pool.

Another 7 day sale was 2081 Balmer Avenue, also in the Moreno Highlands, which sold for $1,079,996. It has 3 bedrooms, 3 baths, 2,032 sq ft of living area and a 6,490 sq ft lot.

Now, let's take a detour to other parts hither and thither in the diverse Silver Lake-Echo Park neighborhood. 2122 Vestal Avenue in Echo Park, a remodeled cottage of sorts, has 2 bedrooms, 1 bath, 870 sq ft of living area and a 2,760 sq ft lot. After 5 days on the market, a buyer paid $501,000 for this home, amounting to an astonishing $576/sq ft.

Finally, our grand prix winner for "best buy" goes to 2112 Loma Vista Place in Echo Park. Located on a "step street" (yes, accessible by a stairway and not by road, and we mean a long stairway), this cute 1914 1 bedroom, 1 bath bungalow (with heaps of deferred maintenance) on a 2,680 sq ft lot sold as a foreclosure for $200,000. It's interesting to note that the home sold for $195,000 in April 2002. After the recent real estate bubble, we consider this a "reversion to the mean."

Off Beachwood and Vine: Touring A Couple of Vintage Homes in the Hollywood Hills East in the Rain

2010-10-20T12:47:00.000-07:00

This is a post by Luke Jones. The Hollywood Hills have a certain allure and will always attract buyers. However, it’s harder these days to sell vintage homes that have not been upgraded. With financing hard to come by, many buyers are loathe to carry out major renovations and are seeking something that is “plug and play”. However, sometimes you spot a house with loads of charm and think, “someone’s going to make a project of this.” That’s the first home I’ll describe, 2769 Westshire Drive, in the Hollywood Hills East.

Located just east of Beachwood Canyon and a stone’s throw from the Beachwood Café, 2769 Westshire Drive has spectacular views and is in the very heart of historic Hollywoodland. This 1926 original Spanish Colonial has 4 bedrooms and 3.5 baths with an unusual rotunda entryway and a hexagonal dining room and matching room below. The house is 3,262 sq ft with a 6,200 sq ft lot.

The kitchen needs to be entirely replaced, the interior needs modernization and the exterior of the back of the house could do with some work, but the home has tons of character with fabulous natural light throughout. It’s priced at $1,395,000 and may need a couple of hundred thousand to bring it back to its former glory. However, it’s one of a kind and is just waiting for that perfect buyer to come along.

Alternatively, sometimes you walk into a vintage place that’s “done done done” and still retains its character and you think, “awesome!” 2701 Creston Drive, in the Hollywood Hills East high in the hills above Vine, with fabulous views over the city and to the sea, is precisely one of those homes.

These roads are a nightmare in heavy rains, but the view is the payoff! The 2,900 sq ft house has 4 bedrooms and 3.5 baths with a beautiful master boasting two decks, one overlooking the city and the other looking over the spacious yard with infinity pool. The lot size is over 10,000 sq ft with ample room to develop. At $1,849,000 it’s not cheap – but as I say – if this is your cup of tea, you’ll love it.

FOR SALE: Adner Realty Group Presents 14,587 sq ft of Vacant Land on Sunset Boulevard in the Dynamic Silver Lake-Echo Park Neighborhood of Los Angeles with Plans and Permits to Build a Mixed-Use Residential and Retail Complex

2010-10-20T11:09:00.000-07:00

2014-2022 Sunset Boulevard Project Rendering

Adner Realty Group is pleased to announce we have been retained as the exclusive marketing representative for 2014-2022 Sunset Boulevard, fully entitled land with approved plans for a mixed-use multifamily and retail development in the Silver Lake - Echo Park neighborhood of Los Angeles (90026).

View of Lots at 2014-2022 Sunset Boulevard

The subject property consists of two parcels of vacant land approximately 2.0 miles from Downtown Los Angeles. 2014 Sunset Boulevard (APN #5404-003-011) comprises 7,087 sq ft, and 2022 Sunset Boulevard (APN #5404-003-012) comprises 7,500 sq ft. In aggregate, the two lots comprise 14,587 sq ft.  

Architectural plans and permits exist for the construction of a five-story mixed-used retail and multifamily property consisting of 23 residential rental units, five (5) ground-floor retail spaces, and one level of subterranean parking.  

Apartment mix includes eighteen (18) two-bedroom, two-bath units ranging in size from 855 to 1,158 sq ft, and five (5) one-bedroom, one-bath units ranging in size from 606 to 751 sq ft. Total apartment square footage is 23,070 sq ft. Some units have gas fireplaces or decks.

Intersection of Sunset Boulevard and Alvarado Street

The subject property is adjacent to the intersection of Sunset Boulevard and Alvarado Street. Sunset Boulevard is a primary traffic corridor extending from Downtown Los Angeles to Hollywood and Westside neighborhoods. Alvarado Street is a major axis that provides access to the 101 and 2 Freeways.

Bus Line on Sunset Boulevard

Several bus lines operated by the Los Angeles County Metropolitan Transit Authority (MTA) serve this Sunset-Alvarado intersection.

Edendale Public Library Branch on Sunset Boulevard

This high-density neighborhood has experienced a recent boom in building activity, including the Edendale Branch of the LA Public Library, constructed across the street from the subject property, and the LA Unified School District’s Central Regional Elementary School #10, built less than 1,000 feet from the subject property.

Nearby retail tenants in this vibrant neighborhood include Vons Supermarket, Starbucks, K-9 Lofts, Citysip Wine Bar, and American Apparel. 

Elementary School #10 Constructed 1,000 ft from subject Property

The vacant land at 2014-2022 Sunset Boulevard offers an opportunity to build new and capture improving rents at this hub near the urban core of Los Angeles.

Offered at $2,190,000

2014-2022 Sunset Boulevard Loopnet Listing

Los Angeles Office Market Q3 2010: Holy Concession, Batman! Depressed Job Market Correlates with Sinking Rents and Office Demand and the Best Pro-Tenant Market in Decades

2010-10-18T09:02:00.000-07:00

In case you hadn't heard, there's a recession out there and droves of jobs have been lost for various and sundry reasons like (1) we're crawling out from under a twenty-year financial bubble that's popped, (2) we're in the midst of globalization that's sending jobs from urban centers like Los Angeles to locales overseas, and (3) we're experiencing technological advances that are making it more and more pointless to heat, cool, and pay for office space for workers who are most frequently not at their cube.

Given the dire state of traditional employment, the rapidly shifting economic landscape, and the lack of visibility moving forward, it should come as no surprise that the fundamentals for the office market in Los Angeles are just south of rotten.

Consider these grim statistics: overall vacancy across the Southland was 20% in Q3 2010, up from 17.5% in the same quarter a year ago. Vacancies are now at a 15-year high, and the average asking rent is $2.35/sq ft, $.13/sq ft less than a year ago.

Some markets have been impacted worse than others. The Downtown Los Angeles market has been flat for for years. The building boom of the late 1980s and 1990s resulted in office space that's never been fully absorbed, even in the "go go" days of the dot-com area of the mid-2000s. Downtown vacancy was nearly 18% in the 3rd Quarter, compared to 16.6% on the Westside.

By any measure, these are grisly statistics. However, Los Angeles has been through this cycle before, and it's entirely possible that little by little, over years, the office space will be absorbed, and market dynamics will improve in favor of landlords. (It's noteworthy that at the lows of the last economic cycle, around 1991, office vacancies were as high as 23%). But for the time being, here's some advice for tenants: put your feet up on your desk, kick back, call your landlord, and listen with glee as they accept your rent reduction and cater to your every concession.

Los Angeles Times: Tenants Rule Commercial Real Estate Arena

Venice, California -- Small Investment Opportunities Abound In High-Rent, High-Demand, Hi-Style Neighborhood by the Beach

2010-10-13T11:21:00.000-07:00

This is a post by Luke Jones. A couple of months back I blogged about 421 Grand Avenue, in Venice, a small lot consisting of two beach cottages of about 650 sq ft each with a separate and secure garage on site. The price of this property has now been lowered to $949,000. With vacation rentals of a similar size going for as much as $3,600/month or even $250/night for short term stays, one could live in one of the cottages, let the other, and look at clearing around $30,000/year after vacancy and expenses. This would go a long way towards any mortgage payments. So, it got me thinking that I could explore some other similar opportunities in and around Venice for this post. Here’s what I found out there in the market.

902 Milwood Avenue, Venice is priced at $1,295,000 and is located just one block west of Lincoln and about halfway between Rose and Venice. (We love Milwood Avenue and represented buyers on the purchase of a property on the 700 block.) This California bungalow has a second home/income property that could be let for around $2,500/month. I wasn’t able to see the two bedroom rental property, but the main home is beautifully maintained and well appointed with three beds, two baths, and a large grassy yard with front and back porch area with swings. The interior has detailed paneling, original features, and built-in 1920’s cabinetry. There is also a spacious garage that could easily accommodate one large car or two small cars. The price on this property has been reduced and I think the owners are highly motivated. They’ve already moved abroad, have hired a company to stage the home and will consider offers. With the income property bringing in around $20,000/year (net), this could make mortgage payments very similar to what one could expect to pay in rent for something similar.

An investor with an eye for opportunity may be interested in 667 Marine Street. Technically Santa Monica, this 3,700 sq ft corner lot is just west of Lincoln between Rose and Ocean Park and still has that Venice vibe. It’s a really cute area with a local grocery shop directly opposite, and the property is just seven blocks from the beach. At $779,000, it’s a steal – but here’s why: it’s pretty much a tear down. But the upside is clear. The existing house (740 sq ft) is in good enough condition to move into right now whilst building a new house in the spacious yard. Or one could tear the whole place down and build a sizeable property instead. It’s being sold in “as is” condition, which means buyer beware!

For an investment property that you would actually live in, check out 3007 3rd Street, Santa Monica, listed at a highly competitive $645,000. This area is known as the San Francisco of the South due to the landmark buildings, hilly streets and walking community. West-facing, with an ocean view and 42 steps up from street level, this bright and breezy 1908 California bungalow definitely has a San Francisco vibe. The house needs some TLC, but for around $50,000, one could spruce it up to a very high standard. The compound used to consist of four duplexes (8 units), but was converted a few years ago into four freestanding bungalows with two beds and two baths each.

All four properties are owned as a “tenancy in common”. In layman’s terms, this means that any new owner would become an equity stakeholder in all four properties with equal ownership and rights. The obvious downside meaning that you would have to consult with your tenants in common over matters such as improving, maintaining and managing the property. Again, the price has been dropped recently and the other co-operative tenants in common are motivated to sell. The listing agent lives in one of the units and has extensive knowledge of the property. She has also gained permission from one of the other tenants in common to convert their basement into a two-car garage and she is offering one half of this garage for the use of the new owner.

Finally, for the Vacation Rental by Owner (VRBO) investor, 447 Grand Boulevard, Venice, offers a very high rate of return. The property consists of three immaculately maintained and well-appointed one bedroom, one bath vacation properties, and is priced at $1,650,000. They have been remodeled with sustainable/green features and include washer/dryers, dishwashers, full kitchens, WiFi and 42” HDTV’s. Renting at either $250/night or around $4,000/month, these properties yield a “back of the envelope” 5.8% cap rate based on 65% occupancy. If one were able to market more aggressively or secure longer-term tenants, the cap rate could be as high as 9%. For Venice, this is an exceptional yield. The current owners have built a solid brand and have loyal returning clients. This existing client base and the brand awareness of these rentals would be “goodwill” that comes with the property.

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If you have a question about Venice, Santa Monica, or investment properties, please call us at (310) 845-6810 or email us by clicking on this link. We'd like to hear from you!

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Beverly Hills Development Watch: 9900 Wilshire, Coveted Robinsons-May Site in Beverly Hills Sells for $148 Million - 65% off Previous Sale Price

2010-10-08T07:05:00.000-07:00

Many developments follow a simple course, going from raw land to finished final entity with nary a speedbump along the way. That's not quite the case for 9900 Wilshire Boulevard, one of the most valuable real estate sites in the nation, which just sold for $148.3 million, after a rocky couple of years.

To recap, this site, home to the former Robinsons-May Department store, sold in 2004 for $33.5 million. In 2007, jet-setting British developers Candy & Candy purchased the site for $500 million, with ambitious plans to create a 235-unit condo/townhouse complex designed by Richard Meier, fabled architect of the Getty Center.

Needless to say, a global recession later, Candy & Candy were out, and Carlos Slim, Mexican billionaire and co-financier of the purchase, foreclosed on the $365 million loan. The land was auctioned privately, and just closed this week.

The buyer is Joint Treasure International, a Hong-Kong-based private equity firm, with plenty of experience in this property type. Since 1995, the group has owned the Beverly Wilshire Hotel, just down the road. Joint Treasure intends to develop luxury condos and has had preliminary meetings with Richard Meier, but it's unclear, ultimately, what will emerge on the site.

We think now is an excellent time for the group to hit the drawing board with the intention of creating some of the best luxury housing ever to emerge in Los Angeles. Perhaps five years from now, when the units open for sale, the global doldrums will have receded, and a cadre of world-class buyers will be lining up to get in on the excitement.

Beverly Hills Development Watch: Developers of 9900 Wilshire Surrender 8-Acre, $500 Million Site to Bank

Los Angeles Times: Coveted Beverly Hills property sold for $148.3 million

Mortgage Watch: FHA Tweaks Loan Formula -- Upfront Costs Lowered from 2.25% to 1%; Mortgage Insurance Increased from .55% to .9% Annually

2010-10-04T09:42:00.000-07:00

Effective today, the FHA is tweaking its fee structure that will result in higher monthly costs for most borrowers in the first five years.

To recap, the FHA is in the business of insuring loans -- and not originating loans. FHA loans were originally intended to help buyers with low downpayment (as low as 3.5%) and/or a low credit score. As recently as a few years ago, FHA loans accounted for only 3% of the mortgage market. Now, some estimates put FHA loan market share as high as 50%.

The good news is that upfront FHA loan origination fees will be lowered from 2.25% of loan amount to 1% of loan amount. Most buyers roll these fees into the loan principal, resulting in marginally lower mortgage payments for the life of the loan.

The bad news is that mortgage insurance for FHA loans is increasing from .55% to .9% of loan principal annually.

Let's take a look at how this will impact the financing of a $500,000 purchase with 3.5% downpayment, resulting in a $482,500 loan.

Old Scenario:

Total Loan = $482,500 + 2.25% loan fees = $482,500 + $10,856 = $493,086 loan principal @ 4.5% interest = $2,498/month

Monthly Mortgage Insurance = .55% of loan amount annually = $493,086 x .0055 = $2,712 annually or $226 monthly

$2,724 monthly payment

New Scenario:

Total Loan = $482,500 + 1% loan fees = $482,500 + $4,825 = $487,325 loan principal @ 4.5% interest = $2,469/month

Monthly Mortgage Insurance = .9% of loan amount annually = $487,325 x .009 = $4,386 annually or $365 monthly

$2,834 monthly payment

Bottom Line:

For the purchase of a $500,000 property with 3.5% downpayment, the new fee structure will result in a $110 increase per month in payment, but the amount borrowed is $5,761 less. Mortgage insurance is typically required only for the first five years of the loan, or until equity is above 20%. After 5 years, the monthly payment under the new structure is $29/month less.

FHA loans have helped many borrowers purchase properties who otherwise would not qualify for a conventional loan. These loans have experienced a high rate of delinquency (as of June 2009, there was an 8% delinquency rate on FHA loans), and it's no surprise that the FHA is raising their mortgage insurance fees. These FHA loans remain a great resource for the buying public.

Penthouses on Sale at Harper West Hollywood - Loft-Style Living, Impeccable Interiors, and Views for Miles and Miles

2010-09-30T09:52:00.000-07:00

Harper West Hollywood, the 32-unit new condo project at 1250 N Harper Avenue in West Hollywood, has just lowered the price on two of the penthouse units.

Penthouse Unit #307 is located in the rear building that contains 8 units, including 3 penthouses. Unit #307 is the middle penthouse, with 2 bedrooms, 2 baths, 1,465 sq ft of living area and amazing picture windows with views to the west -- and one of the best roof decks around. The price has been reduced to $699,000 from a former $834,000 asking price.

Penthouse #423 is in the front building that contains 6 penthouse units. This unit is a spacious 1,932 sq ft, with 2 bedrooms, 2 baths and 200 sq ft of private deck. What makes this unit so special is the loft-living with a fantastic upper level that can be a bedroom or guest bedroom, workspace or entertaining area. Did we also mention that Penthouse #423 has a fantastic walk-in closet? This unit was formerly priced at $944,000, and is now offered at $799,000.

We'd also like to show you a video walk-through of Unit #410, which is a 1 bedroom, 1.5 bath, 2 story unit priced at $529,000. It has 1,326 sq ft of living area, and includes great features such as access via a private stairway, walk-in closet, and great, open living-dining area.

**************************************************************************************If If you have questions about Harper West Hollywood, please call us at (310) 845-6810 or email us by clicking on this link.

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Beverly Hills Homes Mount Stunning Comeback and Rebound 6.7% from 2009 Lows; Auguring Better Times for High-End Los Angeles Real Estate?

2010-09-24T08:19:00.000-07:00

If Beverly Hills real estate is any indicator, recent reports that 'The Great Recession' ended in 2009 hold true.

The median sale price of Beverly Hills single family homes has made a stunning turnaround from its low of $2,870,000 in 2009, and is now averaging $3,063,000 year-to-date in 2010, up 6.7% from last year. In spite of the rocky economy, buyers (essentially investors) are looking at Beverly Hills as a safe place to sock away cash that may not be subject to outlier events like the "flash crash" or the likes of Bernie Madoff.

The top sale of the past three months was 1728 Chevy Chase Drive, a 5 bedroom, 7 bath, 7,200 sq ft house on a 20,689 sq ft lot. This Mediterranean tennis court estate sold for $8,300,000. It had been listed in January 2009 for $10,995,000.

630 Mountain Drive, a grand Mediterranean estate on the one of the most exclusive streets in Beverly Hills (just off Sunset, close to Greystone Park), sold for $7,935,110. This 1964 home is a fixer and has 4 bedrooms, 8 baths, 8,287 sq ft of living area on a full acre lot.

Distress is not absent from the Beverly Hills market. 907 N Roxbury Drive was sold in Bankruptcy Court for $7,580,000. This 5 bedroom, 7 bath, 8,394 sq house on a 23,900 sq ft lot is north of Sunset and was built in 1985.

Trousdale Estates was home to 0 Carla Ridge, set on a promontory with views to the Getty, Catalina Island and Downtown. This 4 bedroom, 7 bath house has 6,200 sq ft of living area and is set on a 20,380 sq ft lot. It sold for $7,500,000.

An excellent Beverly Hills rehab opportunity came on the market by Greystone Park, close to the Sunset Strip border. 424 Robert Lane, a 1960's period gem with 6 bedrooms, 9 baths, 6,834 sq ft of living area on a full one acre lot sold for $7,500,000 (somewhat off its list price of $10 million).

Finally, 8643 Clifton Way, a little cottage in the flats of Beverly Hills, almost seemed like a deal, selling in a short sale for $900,000. This 3 bedroom, 2 bath home has 1,286 sq ft of living area on a 5,160 sq ft lot. Just goes to show it doesn't cost a cool million to live the 90210 lifestyle.

Pacific Palisades Home Sales Start at $1 million, Median Price $2,075,00 - Top Sales in Palisades Riviera

2010-09-17T08:51:00.000-07:00

From the sun-dappled bluffs of the Palisades Riviera, to the nature-shrouded estates of the Palisades Highlands, all the way to the ocean-kissing heights of Castellamare, the Pacific Palisades remains one of the most sought-after swaths of real estate in Los Angeles -- and the nation.

The recession seems very much in recession in this prime area of Westside real estate. Of over 100 home sales in the past 3 months, all but two were over $1,000,000. The median sale price for a home in the Pacific Palisades during this period was $2,075,000 or $677/sq ft.

The top sale of the past three months in the Pacific Palisades was $10,000,000, for an estate that encompasses the iconic Case Study House 9, designed by Charles Eames and Eero Saarinen. This legendary piece of architecture is now the guest house for a fully loaded estate that includes 6 bedrooms, 6.5 baths, 8,500 sq ft of living area on a 43,500 sq ft lot. Top design, top location, top price.

Down the road, in the Palisades Riviera, 1272 Corsica Drive, with 5 bedrooms, 7.5 baths, 8,078 sq ft on a 17,292 sq ft lot sold for $6,500,000. This custom built Cape Cod estate even includes a 23 seat movie theater.

Nearby, in the Riviera Rim, 527 Spoleto Drive, offers ocean and city views, and sold for $5,300,000. The 1965 house has been fully updated and has 5 bedrooms, 6.5 baths, 5,953 sq ft of living area, and 14,374 sq ft lot.

Still in the Palisades Riviera, 1136 Corsica Drive, 2008 new construction, sold for $5,205,000. This Mediterranean villa has 6 bedrooms, 6.5 baths, 5,912 sq ft of living area and a 14,000 sq ft lot.

But, alas, the Palisades, embracing the luxury and comfort of Westside living, is not without its inklings of distress. 720 Almar Avenue, was sold in foreclosure for $2,150,000. The house is remodeled and has 5 bedrooms, 4.5 baths, 3,827 sq ft of living area on a 6,359 sq ft lot.

Short sales in some cases prove to be the best deals on the market, and we think 1356 Piedra Morada Drive was quite a steal at $2,630,000. The tennis estate, has a pool and includes 5 bedrooms, 5 baths, 5,467 sq ft of living area on a 21,546 sq ft lot.

Concerto-Watch: Downtown Los Angeles' Condo Mega-Project Surmounts More Obstacles Than an Olympic 440-Runner

2010-09-10T10:09:00.000-07:00

Much ink (and digital ink) has been spilled on the illustrious Concerto project in Downtown Los Angeles, chronicling the twists, turns, and pirouettes as this magnificent, mega-condo development in the South Park neighborhood comes to market.

Here's the Reader's Digest version for those considering buying units in the building.

The project is the "baby" of developer Sonny Astani, who conceived of a three-building complex at 9th and Figueroa in Downtown Los Angeles. In 2004, this was a maverick move, supported by the wave of condo fever sweeping Downtown LA.

Cut to 2009. The 77-unit Lofts building was 90% complete. The first of two Towers was erected, with most interior construction still remaining. The third Tower was a hole in the ground excavated a few stories deep.

Then Corus, Concerto's construction lender, that also had risky condo project investments across the country, was taken over by the FDIC. Starwood Capital Group, an investment firm, won an auction to take over Corus' assets (with the FDIC retaining 60% ownership) -- including the $190 million Concerto construction loan.

When Corus failed, Astani filed for bankruptcy, and a judge ruled that Astani could close the Lofts units, which had been sold at a "One Day Sale Event" in August 2009. The Lofts building is now occupied ... signs of life (and not strife) at Flower and 9th.

Now, Astani is in a stalemate with Starwood, and is paying $750,000 interest per month as construction inches to a close in the Tower. Astani has until December to present the Court with a financial plan, and until then, it's impossible to see how contracts can close.

The units, with amazing views and vistas, are priced from $356,000 for a 759 sq ft 6th floor unit, or $405,000 for a 909 sq ft 5th floor unit, to $525,000 for a 1158 sq ft 5th floor corner unit.

We see no reason why the building should not be completed, sold and occupied today. Los Angeles could certainly use the 600 union construction jobs, and EVO down the road demonstrates a proven demand for large scale, high-quality, new construction in South Park.

These excellent units will find delighted buyers once the financial kinks of this project are worked out.

Los Angeles Times article:

Downtown developer battles investors, FDIC

Some of our previous coverage on Concerto:

Concerto and EVO South in Downtown Los Angeles - Say Hello Again to Two Favorite Condo Towers in South Park - July 12, 2010
In Downtown Los Angeles, Concerto's Future Hangs in the Balance - September 24, 2009
5 Reasons We Love Concerto in Downtown Los Angeles - July 22, 2009
Concerto: Pitch-Perfect Debut at 9th & Figueroa in Downtown LA - June 8, 2009
Concerto: Headwinds Greet Downtown LA Condo Project - April 23, 2009

Ritz-Carlton at LA Live: Blue Mosaic Facade Houses Downtown's Best Homes in the Sky

2010-08-31T10:32:00.000-07:00

High above the city, at the Ritz-Carlton Residences at LA Live, you'll find plenty of comfort and a box seat to the some of the best views -- and certainly the best amenities -- in Downtown Los Angeles.

The Gensler-designed building offers 224 residences from the 27th to the 52nd floor of this blue, mosaic-clad building that has become a new landmark on the Downtown skyline.

The building is now 60% sold, and closings and occupancy will take place at the beginning of the new year. There are 1 bedroom ($800,000 and up), 2 bedroom ($1,496,000 and up), and 3 bedroom ($2,124,000 and up) floorplans available, so for those looking for a pied-a-terre or a chic residence in Downtown Los Angeles, you must check out the Ritz-Carlton Residences.

The two-bedroom 27th floor model unit is designed in a warm, classic style that fits the Ritz-Carlton brand perfectly. The apartment-style layout features two bedrooms which offer some of the most spectacular views from bedside.

This model unit has western views that encompass everything from the Hollywood Hills to the beach to the South Bay.

The kitchen has enough Gaggenau appliances and finishes to rival an outfitted Westside home -- even though you may only use it to heat up the Wolfgang Puck cuisine you order from downstairs restaurant WP24.

Climb to the 44th floor, and check out the views of one of the 3 bedroom corner units. The space is currently under construction, but clearly, high above LA, you will never want to leave home.

The Ritz-Carlton Residences at LA Live have their own pool and gym, which are shared with the Ritz-Carlton Hotel, but are separate from the Marriott Hotel below.

On the hot summer day we visited, the pool looked particularly inviting.

Residents have access to the Sky Lobby, a floor-length building common area, which looks like a great place to wile away before a Lakers game or a concert at the Nokia Theater or Staples Center below.

Other amenities include concierge service, valet service, and one-stop LA LIVE All Access Living. Residents get perks from the Ritz-Carlton brand such as free breakfast for two when you stay at Ritz-Carlton hotels. And since developer AEG is also in the music business, (owning the O2 arena in London and other entertainment venues), residents at the Ritz-Carlton at LA Live get priority access to these events.

We think that Ritz-Carlton at LA Live is an incredible addition to Downtown LA and to Los Angeles itself. Finally, the excitement and hustle bustle of the city returns to its heart.

The Ritz-Carlton Residences at LA Live

Building Website

tel: (213) 743-8854

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We love the Ritz-Carlton Residences at LA Live and would like to tell you more about it. If you have questions about this or other condo buildings, please call us at (310) 845-6810 or email us by clicking on this link.

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Harper West Hollywood Cuts Prices, Nets Buyers Best Quality, Best Location at Best Value

2010-08-24T06:39:00.001-07:00

Harper West Hollywood, a 32-unit new condo complex in one of the best residential neighborhoods in West Hollywood, has cut its prices by a total of 12%, making this the best quality, best value around. One bedrooms are priced under $500,000 and 2 bedrooms start in the mid-$600,000s. Buyers take notice.

Look at these units that are for sale:

Unit 403 - 1 br/1.5 bath- 1,382 sq ft with 481 sq ft terrace - 1st Floor unit - ~~$554,000~~ ... now $499,000
Unit 411 - 1 br/1.5 bath - 1,326 sq ft with 29 sq ft terrace - 2nd Floor, 2 level unit - ~~$589,000~~ ... now $519,000
Unit 413 - 2 br/1.5 bath - 1,367 sq ft with 101 sq ft terrace - 3rd Floor unit - ~~$794,000~~ ... now $674,000
Unit 303 - 2 br/2 bath - 1,521 sq ft with 148 sq ft terrace - 2nd Floor, 2 level unit - ~~$719,000~~ ... now $624,000
Unit 308 - 2 br/2 bath - 1,451 sq ft with 311 sq ft terrace - Penthouse Loft - ~~$849,000~~ ... now $764,000

Adner Realty Group is honored to be doing the online and social media marketing for this project and will be updating you with more photos and media on these units.

Check out a video walk-through of Unit 308 -- Now note the reduced price of $764,000, from $849,000:

And take a look-see at Penthouse Unit 419, which has been reduced to $899,000, from $954,000:

Finally, take a gander at Unit 401, which has been reduced to $514,000, from $589,000:

Harper West Hollywood
1250 N Harper Avenue
West Hollywood, CA 90046

Hollywood Multifamily 2nd Quarter 2010: Same Old Song And Dance, GRMs in 8.4 - 10.9 Range

2010-08-23T13:41:00.000-07:00

As we have frequently reported, Hollywood is credited as being the hottest sub-market in the five county Southern California region. With the arrival of the W Hollywood Residences crowning the intersection of Hollywood and Vine (with condos priced just under $1 million and up), the neighborhood has indeed arrived for the 21st century. Hundreds of new rental units have come online, and Hollywood has reasserted itself as a central hub of the city where its residents live, work and play.

Given its rising star, it should come as no surprise that Hollywood racked up some impressive sales during the 2nd Quarter of 2010.

The largest sale was 920 Wilcox Avenue, a 26-unit building that sold for $7,250,000 and a GRM of 10.9. This building has 18,587 sq ft of living area, and built in 1990, is not subject to Los Angeles rent control. The just-rehabbed property also offer its owner the possibility of condo conversion in the future, when better times are at hand.

Another sale that tipped the scale was the "trifecta" of 6228-6234-6238 De Longpre Avenue. These three buildings, comprising 62 units, were sold as one package for $5,875,000 or an 8.4 GRM. The structures were constructed between 1925 and 1937 and contain a total of 34,400 sq ft. The list price for the three buildings was $6.3 million.

1300 N Alta Vista Street, a 10 unit building constructed in 1936, sold for $2,625,000 and a 10.3 GRM. This property traded at a significant discount to its $3.3 million list price.

823 N Hudson Avenue, with 8 units and 6,795 sq ft of living area, sold for $1,175,000, $75,000 below its $1,250,000 list price. This 1963 building traded at a 10.6 GRM.

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