Top Projects Outside of the O.C. to Watch in 2018
Here goes...
For San Diego, we have...
Mission Beach Residences, Mission Beach, San Diego
The location is spectacular, on a peninsula with water steps away in opposite directions. If
this was in Newport, prices would be insane.
For Los Angeles, we have...
The D.R. Horton Collection, El Segundo, Los Angeles
There has been a lot of talk about the more upscale Seabluff flats in Playa Vista, but at $1
million for a 700 sf. condo, it's a no go for me. Rather, I think the D.R. Horton collection in
El Segundo will be more proper to consider.
I see this project as an indicator of just how much people want to live on the South
Bay/Westside. It's across the street from LAX, which should eliminate almost all demand,
yet it doesn't. Why? Because where else in the South Bay or Westside can you buy a new
true single-family residence for most likely around $1.5 million? Right now, ETCO and
Taylor Morrison are selling condos for $5 million in ritzy Pacific Palisades, while Terranea
resort condos are being sold for $1.3 million in Palos Verdes that you can't even live in
year-round because of Coastal Commission restrictions...
D.R. Horton is known for low-balling density (i.e. the Faircrest collection in Mid-City was a
shocker to the urbanite folks in UrbanizeLA, considering the Miracle
Mile/Grove/CBS/LACMA/La Brea are within walking distance). Let's see what will happen...
Watch at https://vimeo.com/175876338 (D.R. Horton is blocking me from directly posting
the video here...)
Kudos extended to the Periscope project in Silver Lake (drool architecture) and Sagewood in Harbor City (a good indicator of Ponte Vista/Highpark prices).
Kudos taken away from the Ambassador Gardens project (how could you bother paying over $2 million for a condo that far inland???) and the Canyon Oaks-Toll project (even $1.3 million for a large Toll Brothers home is nonsensical in Chatsworth...). Also, beware buyers of Panorama or 8500 Sunset homes: you are living on top of the Hollywood fault!
Onto some questions, now, that I have received about resale purchases...
1. Is buying in the Beverly Glen area a good idea for homes under $2 million?
It depends. I would stay away from any homes off Beverly Glen Blvd. just because it's the stepchild in the area. You can buy cheap land there and build your own home instead of paying for a resale. However, if you buy a home like 1438 Davies Dr. (I am not affiliated in any way with this home), it's a more than good enough investment.
2. The 2775 Cahuenga project?
It was recently built by Lennar, and yes, there a lot of things going for it. It is a true single-family residence project in the Hollywood Hills for no more than $1.2 million, and some lots, although unusable, legally encompass more than 1/2 an acre. You have no views, but I believe there was one home that was trying to rent for more than $15,000/month with maid service (talk about weird). Most homes have equestrian rights also, so if you live/work in the area, you should give the project some good consideration...
3. (All questions about West Hollywood new-ish projects)
There are a lot of new (and recently new) condos being built in West Hollywood right now. Since developers are not subject to the Small Lot Ordinance, there is no incentive for them to build true single-family residences. The Larabee project is one well-known project that was highlighted in a newspaper for being affordable. Formosa Fusion received various accolades... One home off Formosa I think right now is new AND has a wonderful small yard with uncovered terrace and rooftop deck, although you get only 1 bedroom for $1.1 million (ouch). The Havenhurst project personally doesn't appeal to me (you have catwalk-like entries on higher levels). I would have chosen the $1.2 million small penthouse next to the project that was just sold relatively new...
4. The Flats or North of Montana?
Your choice. North of Montana is definitely in a better LOCATION. Along the west-facing coastline of LA, the farther north you go, the more expensive real estate is. In order: Redondo Beach, Hermosa Beach, Manhattan Beach, El Segundo, Playa del Rey, Marina del Rey, Venice, Ocean Park, Santa Monica, NORTH OF MONTANA, Pacific Palisades/Castellammare, Malibu, etc.
You get a cool temperature year-round and have easy access to Malibu as well as Downtown via either the 405 or PCH. However, The Flats has a better VIBE in my opinion. Driving through North of Montana feels like driving through a traditional American neighborhood with empty lots possibly looking abandoned. Driving through the Flats makes you feel like you spent $3,000/sf wisely. It definitely feels more exclusive, has been featured in countless films, and could be seen as a model for mid-century suburban development throughout Southern California. With that being said, you have to be VERY, VERY wealthy to afford either neighborhood. You're looking at a 1,700 sf home going for about $5 million at minimum for the Flats and about $3 million for North of Montana...
5. Is Irvine a good buy (new or resale) above $1.5 million?
No. I am biased towards Orange County real estate below $1.5 million and towards Los Angeles real estate above $1.5 million. $650,000 in Orange County will plunk you down in a safe, new home, while the same cannot be said about Los Angeles. However, $2 million in Los Angeles could be considered "starter" in Westside, while the same cannot be said about Orange County (unless you buy in Echo56, the Grand Monarch, etc.). At $1.5 million, you can start affording decent homes on the Westside, and I feel that is better than buying into Irvine not only because of investment and the Silicon Beach effect, but also because of your location. You are closer to entertainment and go against the traffic flow during rush hour (while all the other prawns suffer in the opposite direction). Irvine is not the ideal place for a wealthy family, even if the schools are good (a good school does not mean a good university as some commentators have shown via school-based selection). It's a thoroughly middle-class city.