Downtown Los Angeles’ landscape may soon look a bit differently. A recent report from Downtown Los Angeles News stated that at least five new high-rise buildings were being proposed for the center of the city. These sleek, modern residences are expected to bring much needed inventory to a market that is suffering from major price increases due to the density of smaller, six- to seven-story buildings that aren’t capitalizing on the potential of downtown Los Angeles.
Presentations were made to the Downtown Los Angeles Neighborhood Council’s Planning and Land Use Committee Tuesday, March 18, which entailed details of the projects.
One of the biggest players in the new towers is Vancouver-based developer Onni Group that is already working on the construction of a tower located at 888 S. Olive St. The group is also seeking approval for a 50-story mixed-use development project at 820 S. Olive St. and 31- and 40-floor complexes at 1200 S. Flower St. The Flower Street towers alone would bring a total of 730 housing units onto the market, and the 50-story Olive Street building would add 589 units.
Additionally, Amacon, another Vancouver-based developer, is gearing up to get a 28-story project underway that was initially approved by the city in 2008. The project was put on hold partially because of the recession, but it set to bring 208 residential units to the Los Angeles landscape along with 5,029 square feet of restaurant and retail space.
The last building on the horizon is by downtown developer Izek Shomof and will boast 34 stories that will create 405 residential units and 6,900 square feet of commercial space. The building is set to be at the corner of Fourth and Broadway.
“We didn’t know if the economy would come back in a robust way once the recession declined, and it has, and so these high-rises reflect the confidence of developers in the Downtown market,” Carol Schatz, president and CEO of the Central City Association and the Downtown Center Business Improvement District told the publication. “They recognize the jobs-to-housing balance is way out of whack.”
Inventory in Southern California
These towers would add much needed inventory to the Los Angeles area and help to bring down median home values across the entire region. In Los Angeles in particular, the median single-family home value was marked at $578,000 for the seven-day average by Altos Research, a California-based real estate analytics company.
A recent story by the Associated Press stated: “Developers are still wary about putting up new construction despite a boom in prices over past year. As a result, the region’s supply of new homes dropped to about 2,200 at the end of last year compared with 19,000 in 2006, just before the market collapsed, according to the Real Estate Research Council of Southern California at Cal Poly Pomona.”
While the proposed towers won’t satisfy the needs of those looking for single-family homes, the additional inventory will aid the market for condo buyers and home buyers alike.
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