Demand soars for contemporary homes in LA’s financial district
Once seen solely as the financial centre of Southern California, Downtown LA is set to continue its remarkable transformation into a thriving residential community.
That’s according to Ray Hogan, managing director of Oryx World Portfolio, a Dubai-based real estate company that sells and leases high-end developments in multiple destinations, including LA.
“The rise in entertainment, retail, dining and other amenities in the financial district has triggered substantial demand for multifamily units,” he says.
“The market is currently undersupplied and there are countless Downtown professionals who want to live close to where they work. This has, and still is, making the area highly attractive to investors.”
For potential buyers, the residents’ demographics are impressive. The average income is $98,700, nearly double the national figure according to a report in the Wall Street Journal. The median age is 34 and more than half the residents live and work in Downtown LA. Approximately 42% have at least one pet.
Staples Center, the 20,000-seat sports and entertainment arena, which opened in 1999, has significantly boosted development in the southwest of Downtown. Another key driver has been the Adaptive Reuse Ordinance, introduced by the Los Angeles City Council to preserve and redevelop historic buildings. As a result, many older buildings have been converted into elegant loft-style residences.
“The introduction of the ordinance coupled with attractive demographics and major sporting events have triggered huge development in the area,” says Hogan.
“Downtown LA is now both a business and a tourist hub with vibrant shops, restaurants and hotels. As more professionals are enticed to move to Downtown, the number of residential real estate projects is increasing to match the demand.”
One such project is Metropolis Los Angeles, which comprises three residential towers, a boutique hotel and 70,000sq ft of retail, and food and beverage outlets. Covering more than six acres on 889 Francisco Street, a stone’s throw from Staples Center, the development includes luxury studio, one-bed and two-bed residences, starting at $576,000 per unit.
The third and final tower is due for completion at the end of 2018. The anticipated appreciation by this date is 16%.
For more information, please call Oryx World Portfolio on +971 (0)4 446 2000.