Flippin' Out in South Central

A recent L.A. times article pretty much sums it up: Real Estate today is not for the faint of heart. Nor has it ever been, for that matter. It's hard to believe that, just a few short years ago, droves of aspiring real estate moguls mistook once-in-a-blue-moon timing and market conditions as evidence of their investment saavy and business acumen. One needed only to sign on the dotted line to practically guarantee prosperity and success in a market that at its peak gave a twenty percent return on investment in a year. Those were the days...
The ether has cleared, the hangover has set in, and we are now challenged with the repercussions of our actions, leading to the biggest economic downturn since the Great Depression.
Forgive me, as I don't mean to rub salt in the wound for those of us who may be kicking ourselves today over hasty, but well-meaninged decisions made in the swell of inflationary headiness. What I am trying to stress is that, although Real Estate continues to be a sound investment instrument in the long term, you really must do your homework to uncover the full picture before leaping at the prospect of finding gold in a quick flip.
The good news is that saavy and experienced real estate investors are flipping houses in Compton because that's the area where the numbers are starting to make sense, even if the work is dirty and dangerous. Assuming that Compton continues to be an area of the city whose residents face some of the harshest economic realities, it stands to reason that this area will also hit 'bottom' first. The fact that real estate values are starting to bottom out to the degree that investors can come in and make a reasonable investment for rehab and still gain a return that makes the effort worthwhile, is encouraging news. Based on the sheer magnitude of unresolved and delinquent debt that's yet to be dealt with, I doubt that other sub-markets will reach stabalization as soon, but perhaps we are beginning to see a small ray of light at the end of a very long tunnel. Let's hope so.
Click here to see a map for House Flipping Hot Spots in the Los Angeles Area
To read the complete article: http://www.latimes.com/business/la-fi-south-la-20100425,0,3267386.story
Related Links: latimes.com
(photo courtesy of Los Angeles Times)

Auction Update! No TCO= No Go on El Dorado Auction, Hancock Lofts up for grabs on the 25th.

CIM/Lee Homes will count on real estate auction firm, Kennedy Wilson, to blow out the last fourteen lofts of their West Hollywood 'architectural sensation' in a 'private urban sanctuary' on the corner of Santa Monica Blvd. and Hancock Ave. The remaining Hancock Lofts homes, originally priced between $894K to just over $1.3 million, will hit the auction block with starting bids ranging from $395K to $495K.Single level units as well as town homes are available, ranging from 1043-1585 sq. ft. Auction registration for this weekend's auction must be completed no later than this Thursday, 4/22.
Meanwhile, the developer of the Downtown El Dorado project has been unable to obtain their temporary Certificate of Occupancy from the city. Now, the
scheduled April 25th auction of the building has been put on hold until the water line feeding the building's sprinkler system is fixed.
Chances are that the auction won't be rescheduled in time for buyers to take advantage of the last remaining days of the $8,000 first-time homebuyer tax credit program. The program requires that buyers must be under contract to purchase a new residence by April 30th, 2010.
'A sampling of starting bid prices: An 850-square foot one-bedroom will start at $245,000; a 1,190 square foot one-bedroom, two bath will start at $335,000; a two-bedroom, 1,400 square foot unit will start at $395,000. The most expensive unit, a 1,700 square foot three-bedroom with a private roofdeck will have a starting bid of $595,000.'

You're Sweet Enough Just the Way You Are

I have just recently lectured several friends and clients about the virtues of moving towards a more natural, unprocessed diet. Educating oneself on Best Health Practices can really be a full time job and there is an astounding amount of confusion and deception regarding the quality of our foods. Moreover, the majority of us have a serious 'disconnect' about the direct correlation between what we put in our bodies and how we feel, mentally, emotionally, and physically.

Here's what I know...

Artificial Sweeteners are just bad for you. Stop consuming them. They cause all kinds of adverse effects in the body from skin rash, to high blood pressure and metobolic syndrome, to name just a few.

Sugar isn't so great either in large, refined quantities, but if forced to choose, go for the sugar in your coffee over the Splenda or Equal. Sugar in its natural, untouched form (i.e. fruit) has healthy benefits when eaten in moderation.

Alas! There is hope that you not endure a diet of bland, boring blah-ness. There are some safe and palatable sugar alternatives out there (as a semi-reformed sugar junkie, I won't lie to you- there's nothing like the real deal), but you should sample a few until you find one that works for you.

Natural Sweeteners | Agave Xylitol Stevia Truvia

Catch some Culture!

In case you have all forgotten in between episodes of Dancing with the Stars, Glee, and LOST: the final episode, I wanted to remind you that we live in one of the most culturally diverse and active areas of the country!! Now get off the couch and go soak up some culture!!
On a whim, I bought a ticket to see Rene Fleming at the L.A. Opera a couple of months ago and though I was the only one attending under 35, it was a great performance and my youth worked to my benefit in the mad dash to the ladies room during intermission. I recommend throwing back two glasses of Pinot before the show. This helps induce an emotionally vulnerable condition right before being ambushed by passionate & emotionally charged music, expertly delivered. If you're lucky, you'll walk out in tears!
Be sure to catch:

Ring Festival L.A. at the L.A. Opera, April-June 2010, www.ringfestivalla.com

'More than a century ago, composer Richard Wagner conceived his epic four-opera cycle Der Ring des Nibelungen as a festival event that completely engaged the city of Bayreuth, Germany. In 2010, LA Opera will join forces with more than 75 cultural and educational institutions in Los Angeles to stage Ring Festival LA. Southern Californians and cultural tourists from around the world will be able to enjoy a wide variety of special exhibitions, performances, symposia and special events all centered on LA Opera's upcoming presentation of Wagner's Ring cycle in 2010, the first time that the epic masterwork will be presented in its entirety in Los Angeles.'
Just in time for the L.A. Opera's premiere of Wagner's Ring Cycle, so too has LACMA decided to get in on L.A.'s informal Germanfest action!
Go see: "Myths, Legends and Cultural Renewal: Wagner's Sources" will explore the Germanic myths, folk tales and legends that inspired Wagner, Goethe, the Brothers Grimm and other Germanic artists.
Los Angeles County Museum of Art, 5905 Wilshire Blvd. $12. Noon to 8 p.m. Thursday; Noon to 9 p.m. Friday; 11 a.m. to 8 p.m. Saturday and Sunday. (323) 857-6000; www.lacma.org.

Finally! A Bright Idea..The Hollywood Sign Hotel?

It seems that Danish architect, Christian Bay-Jorgenson has come up with the most sensible and utilitarian design since IKEA! Mr. Bay-Jorgenson has literally brought calm and peace to an entire city now that he has solved the dilemma of the fate of the Hollywood sign: Make it a hotel!!
Now the developers get what they want, the city gets its money, and generations of Angelonians retain an icon of their precious history.
"I'm a fan of the Hollywood Sign Hotel and the unused spaces of America," said Bay-Jorgensen. "It could be interesting to make it a center for such events as the Golden Globes and Oscars. This could be the future of the sign."
The architect's proposal seems like the best of both worlds. The old and the new, the modern & the classic, the progressive and the reverent all get a tip of the hat with this use. It would seem the underlying economic dilemma of the controversy could be solved with this proposal also. Way to go, Mr. Bay Jorgenson! Gold Star for out-of-the-box thinking!
Read more: http://www.worstpreviews.com/headline

Crazy for Coachella in LA

Aah, Coachella. Word has it, the original promoters were thinking of nixing the popular music fest this year due to the economy. They thought twice about it, however, after realizing that the masses seem to be drowning their recessionary woes in a good dose of amp-charged, sweat inducing, music celebration! Live performance is where it's at.

(photo courtesy of los angeles times)

According to the L.A. times, 'Live music is thriving, even as other parts of the music industry are faltering. Recorded music continued its downward spiral, with U.S. album sales falling 8% in the first three months of the year, according to Nielsen SoundScan. Even digital music, which had enjoyed a drumbeat of increasing sales, fell 1% in the first quarter, its first such drop since 2003, when Nielsen began tracking digital downloads.
But worldwide concert ticket sales busted through $1 billion in the same period, up 6.2% over the same quarter of 2009, another surprising first given that the quarter typically is slow for concerts, according to Gary Bongiovanni, editor in chief of Pollstar, a concert industry trade magazine.'
The last time I went to Coachella, Madonna was headlining and I almost got trampled to death by two thousand angry gays covered in mud and urine. Then my ride left me. Seriously. That is why at over $300 for a three day ticket (to camp in the desert with a bunch of urine stained, mud covered folk) I will be skipping Coachella this year. To all of you young hipsters who are making the trip, have fun, be safe, and send a postcard!
To find out more, read Coachella
Related Links: LATimes

Hollywood is Back!

I really have a special affection for Hollywood and its gung-ho enthusiasm for urban density and smart growth. There are times, epsecially in today's climate, when I am doubtful that the 'urban renaissance' will gain momentum, but then I'm reminded that Rome wasn't built in a day.
The fact is that the reinvention is happening as we speak, albeit slowly. If you don't believe me, take a quick drive through Hollywood and notice the street activity, the new restaurants, a sprinkling of new 'anchor' retail outlets, and a bunch of new residential developments. The most recent crowning jewel of Hollywood has been in the unveiling of the W Hollywood, a fine example of transit oriented development and a testament to what's yet to come in Los Angeles.
I spent the afternoon a few days ago previewing The W Hollywood Residences, 1600 Vine St. (The W's sister apartment project), and The Sunset & Vine Towers (CIM Group).
Here's the low down from where I sit...
The W Hollywood Residences: If you've got the dough and you love the party life, this may be the place for you! There are undoubtedly some kinks that need to be worked out by the hotel to make certain that all of the promised amenities are accessible by the condo residents, but I suspect they'll have a handle on this soon. If you want my opinion on the hotel itself, check out my last blog at W Hollywood: It's a Start
As for the condos, the only ones worth looking at are on the north, hill-facing side of the building, found on the top three floors, and located as far away from the hotel as possible. Pricing is all over the map from $693-$1520/ sq. ft. HOA's for this full service building range from $1.20-$1.20/ sq. ft. Call me for more info. I have lots of opinions regarding the pros and cons of this project.
The 1600 Vine St. apartment building gives the W a little bit of a run for it's money if you are considering the value of living close to the nightlife, without the committment or cost of home ownership, and with a fairly high caliber of amenity. The building is rock solid and sound issues seem well accounted for, however rumor has it that the units closest to the action at the W have had more than a few complaints. Not bad for rentals, and the Trader Joe's is only a stone's throw. Lease prices were about $2.10-3.20/sq. ft., and they have the full gamet of room counts and square footages available.
The clear winner here was definitely the Sunset & Vine Towers. The views are quite amazing and the lease rates seem almost reasonable if you are taken by industrial, lofty, expansive spaces ( I am). The utility of the floor plans is logical and maximizes the space. Every unit in the building has a brilliant view. The original plan was for this building to be sold as condos and I am sorry to see that they went the rental route instead. This building would have been amazing with high-end fixtures, finishes, and a suite of amenities that fit the lifestyle. Nonetheless, if you're an urban type, this building offers a reasonable value for what you get.
The building is leasing for $3-$4/ft. and they have a small southern facing unit for as little as $3,400/mth. If you like the view from the top, then you might like the panoramic, four point view from the penthouse level for a mere 25K a month. I'm standing by, so call me when you're ready to sign your lease!
Seriously though, if you have any questions about any of these projects, just give me a shout.
Links to the websites below...
http://www.whollywoodresidence.com/
http://www.sunsetvinetower.com/
http://www.1600vine.com/