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

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

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

**************************************************************************************

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.

**************************************************************************************

Concerto and EVO South in Downtown Los Angeles - Say Hello Again to Two Favorite Condo Towers in South Park

This weekend we had the chance to revisit two, grand, new construction buildings in Downtown Los Angeles -- Concerto and EVO South.

We are excited to welcome back our old friend Concerto, where units in the 25-story tower are now on sale.  You may remember that last August, 77 units in the Concerto Lofts (pictured above) were sold at a one day "sales event" (i.e. auction).  Since that time, construction on the tower is nearly completed and units on floors 5 - 20 are now on sale.

Concerto's arrival on market has not been without hiccups.  Developer Sonny Astani and Starwood Capital have been tussling for control of the project (Curbed LA offers outstanding blow-by-blow coverage of this saga, from Concertos' bankruptcy proceedings last fall to Astani's embattled relationship with the lender, which was also covered in depth by the Wall Street Journal.)

Each floor at Concerto from levels 5 - 20 contains 12 units -- 8 one bedroom-1 bath units (730 - 909 sq ft) and 4 two bedroom-two bath units (1158 - 1185 sq ft).  A sample 5th floor one-bedroom is priced at $356,000 for 759 sq ft ($469/sq ft).  A sample 5th floor two-bedroom is priced at $535,000 for 1,179 sq ft ($454/sq ft)

We were really pleased to see that the complex is now coming to life with the filling of the salt-water swimming pool.  The completion of the Tai Chi garden can't be far behind!

Down the street at EVO South, the building's 311 units are 83% sold.  This is an incredible feat, given that the building was marketed during the worst part of the financial crisis, and is a testament to the quality and attractiveness of these units.  A sample 7th floor one bedroom - one bath unit facing the Staples Center is priced at $455,000 for 890 sq ft ($511/sq ft).  A sample 14th floor two bedroom-two bath unit with balcony, facing the Staples Center is priced at $730,000 for 1,160 sq ft ($629/sq ft).

We've always loved the clean simplicity of Evo's units and this four-star, "green" building.  Take a stroll down the wool-carpeted halls or by the amazing sixth-floor pool or into one of the hardwood-floored units and you will understand why.

Concerto - Sold by Keller Williams
EVO South - Sold by the Mark Group

655 Hope Street in Downtown Los Angeles: 17 Stories and 80 Units of Glass, Steel and Fine Finishes at the City's Center

Updated 4/22/10: The developers of 655 Hope in Downtown Los Angeles elected to auction only 30 of the 45 lofts on April 18, 2010. This adaptive reuse project (an office building -- with lots of parking!!! -- converted to residential use) is located in the center of Downtown close to Staples Center, LA Live, Ralphs Freshfare supermarket, and the 7th Street Metro Station.

The building consists of 17 stories, the lower floors of which are reserved for parking. There are 8 units to a floor, which range in size from 600 sq ft for a 1 bedroom, 1 bath unit, to 1268 sq ft for a 2 bedroom, 2 bath unit. "Starting bids" are $165,000 for the least expensive units. (Expect the units to go for much more). HOA dues vary according to unit size.

What did the units sell for at auction? $268,000 - $500,000. This amounts to $329/sq ft for the largest floorplan (1,255 sq ft) on a lower floor (9th), and $486/sq ft for the smallest floorplan (and we mean small -- 600 sq ft) on a high floor (15th). See more details about the auction at Curbed LA.

The finishes have the polish of a high-end project. Floors are an attractive dark chocolate wood. Kitchen are outfitted with GE Profile appliances, glass tile and slick counters. The building has a fitness center and a roof deck.

Those looking for a traditional layout with enclosed bedrooms will be disappointed by 655 Hope's open floorplans. One can see that a 2 bedroom unit (like 1502, pictured above) has no doors, and it's up to you to create the boundaries between rooms. Here's a walk-through of the unit.



655 Hope is wedged into the urban fabric of Downtown Los Angeles. The downside is that the view from many of the lower floors are obscured by neighboring buildings. Some units on the upper floors, however, like 1502 (above) do have quite spectacular views. Those interested in the purchasing units should not simply choose based on floorplan but should check out the light/view for individual units.

Kennedy Wilson, which hosted the Market Lofts auction in November 2009, will be conducting the 655 Hope auction. This traditional auction format in which one unit is sold at a time leads to rapid-fire bidding (2 - 3 minutes per unit) and buyers must be deliberate and quick-paddled to get in on the action.

655 Hope Street
Los Angeles, California
Auction Website

El Dorado Lofts in Downtown Los Angeles: 1914 Hotel Conversion Brings Craftsman-Era Magnificence to Old Bank District

El Dorado Lofts at 416 S Springs Street in Downtown Los Angeles will not be auctioning 44 of its 65 units at an event on April 25, 2010. Update 4/16/10: The auction has been canceled because of delays in the building obtaining a Certificate of Occupancy (per developer). The units will be sold through a traditional sales office, with prices starting at $280,000 for a 1 br-1 ba (848 sq ft) and $386,000 for a 2 br - 2 ba (1,176 sq ft).

Floorplans of this 12-story building range in size from 848 sq ft to 1,394 sq ft. HOA range from $456 - $622. Parking is not included with the purchase, but the building has a perpetual and exclusive parking easement with Bankhouse Parking Structure on 4th Street.

[from Los Angeles Historian Blog]

Located in the Old Bank District next to the Rowan Lofts and future Spring Street Park, the refurbished El Dorado Lofts hark back to a bygone era when this neighborhood was known as "Wall Street of the West".

The developer is Goodwin Gaw, responsible for the Rowan Lofts, the Hollywood Roosevelt Hotel, and in a large part revitalizing residential Downtown.

The grand lobby was a bustling hub for businessmen and frequent travelers, and a "much-proclaimed venue for local social events."

The El Dorado is certain to be full of life nearly a century later and a great addition to emerging Downtown scene. Be sure to grab a Burgundy or Malbec at the Must Wine Bar and small plates at the innvotiave eatery The Gorbals just down the block.

Dozens of tiles from the Pasadena-based Batchelder Tile Factory, harbingers in the Arts and Crafts movement, cover the lobby walls.

There are a couple of negatives -- the ceiling height feels low in some of the units and some of the new, exterior balconies feel a little rickety.

Regardless, the El Dorado's features are extensive and impressive:

• Bosch appliances with stainless steel finishes
• Granite countertops
• Grohe kitchen faucet
• Double-compartment Franke sinks
• Snaidero Italian bathroom cabinets
• Soaking tubs
• Toto bath faucet and shower sets

Clean, clean, clean ... and plenty of space to spread out in the 2 bedroom units.

And this view is amaze-balls!


El Dorado Lofts
416 S. Spring Street
Los Angeles, California 90013
www.eldoradolofts.com

Los Angeles County Loses 154,000 Jobs in 2009 but Region Sees "Green Shoots" of Recovery: Jack Kyser of the Los Angeles Economic Development Corp.

In advance of the Los Angeles Economic Development Corp. 2010-2011 Economic Forecast & Industry Outlook, Chief Economist Jack Keyser gave a snapshot of the region:

• Los Angeles County lost 154,000 jobs in 2009
• LAEDC expects “measured recovery” where certain sectors come back but others lag
• The local economy has hit bottom and there are "green shoots" of recovery that include an increase in international trade, a rise in film, TV, and commercial production thanks to a state film incentive, and major infrastructure projects that include the renovation of the Tom Bradley Terminal at LAX, the widening the 405, and the development of the Expo line
  
• The city has a $212 million deficit, retail sales are way down, tourism is down, and property tax has plummeted due to decline-in-value reassessments
• Budget problems are expected to linger for several years
• Downtown, a lot of residential projects are in financial difficulty, but the opening of the Convention Center hotel should bring more people to Downtown LA
• Demand for more office space Downtown is “problematic”

Although this is far from a rosy assessment of the local economy, at least there are "green shoots" and not 'dying seeds'. If the economy is at the bottom (or somewhere near the bottom) the expectation is that month by month, the local economy is improving and the jobs will follow. [Los Angeles Downtown News]

Downtown Los Angeles 2010: Banks, Mezzanine Lenders and Developers Tussle at the Negotiating Table

Since the Great Depression, bankruptcy -- both personal and corporate -- has cast a long shadow over the American psyche. Whether it was the titans of 20th century commerce canonized in Monopoly -- or the wizards of Wall Street canonized in the last decade -- the greatest financial parties of all time terminate in one brief acronym - BK, or its adoring sibling, foreclosure.

Now, as some mega-projects go under, foreclosure of real estate projects is reaching a new apotheosis. This week, the owners of Stuyvesant Town and Peter Cooper Village -- a haven for the middle class on the East Side of Manhattan -- handed back the keys to its creditors. Four years ago, Tishman Speyer Properties purchased the 11,227 apartment complex for $5.4 billion dollars -- the largest real estate deal in US history. Their projections of a 13.5% return on capital never came to pass.

Because real estate relies on a large measure debt for its financing, when values drop the equity portion of a deal can very quickly evaporate. CALPERS (California Public Employees' Retirement System) wrote off its entire $500 million investment in the project (a 26.5% stake). Even the Church of England got punished, losing its $64 million investment in the project. Gross miscalculations based on bubble-era projections turned good money into naught.

The Flat, Downtown Los Angeles

Downtown Los Angeles has its fair share of projects in bankruptcy, and they are shaping the city. The dual-headed Hydra of BK and foreclosure is impacting at least five projects Downtown, according to reports from the Los Angeles Downtown News.

1. LA Central (South Park, 11th and Figueroa) Wells Fargo is in the process of foreclosing on NY developer the Moinian Group for failure to make payment on its $45.6 million note. The developer is in negotiations with the lender and hopes to keep the land, set to become a $1 billion mega-project near Staples Center.
   
2. The Flat (Downtown West, 750 Garland Avenue) China Trust Bank foreclosed on owner 750 Garland LLC after they defaulted on a $23 million construction loan, and later sold the project to private equity fund SA Properties for $20 million. The rental building's cash flows were likely attracted the new investors.
3. EVO South (South Park, 11th and Grand) The mezzanine lender, Westport Capital Partners, took over the project after Portland-based South Group stepped away from its loan on this 311-unit condo project. The building continues to sell units, uninterrupted by this transfer in ownership.
4. Santee Village (Fashion District, 716 S Los Angeles Street) Bank of America now owns the four condominium building project after investor Patriot Group and developer MJW investments defaulted on its $47 million loan. One of the buildings never opened and probably will not any time soon.
5. Brockman Building (Jewelry District, 7th and Grand) Developer West Millenium Group defaulted on its $35 million loan for this 12-story condominium projects, but has not yet been foreclosed upon by lender Bank of America.

In the best of times, developers and investors project mighty cash flows and dramatic increases in the value of their assets. When times don't prove so flush, they run for cover -- and in the process may lose a building or two.

Who will benefit from this financial churn? Buyers and renters. There is a lot of discounting going on, and others' losses will prove to be their gains.

Southern California Office Market on the Brink: Vacancies Edging Up, Rents Edging Down, Landlords on Edge; Recovery May Be Far in the Horizon

Don't look for over-crowding in the adjacent cubicle, according to a report by the Los Angeles Times.

The office fundamentals in SoCal region can be pegged somewhere between pathetic and downright awful:

Perhaps the best news coming out of the fourth quarter was that the ongoing rise in commercial vacancies slowed noticeably, and many expect the rental market to finally bottom out by the middle of this year. Unfortunately for landlords, though, it may take a long time for their buildings to fill up again. That means more bargains ahead for tenants.

Overall office vacancy in the fourth quarter in Los Angeles, Orange, San Bernardino and Riverside counties was 18.5%, a substantial jump from 14.4% a year earlier, according to commercial real estate brokerage Cushman & Wakefield.

What will be the panacea to the beleaguered office market? In three words: jobs, jobs and jobs. Although economists declare we are in a recovery, an increase in hiring -- and the willingness for firms to increase their space requirements -- may be a year or more away.

Furthermore, firms have down some internal "downsizing" in terms of space requirements for their employees. The report cites how law firms, a mainstay for the Los Angeles office market, are now alotting 500 sq ft per attorney vs. 700 sq ft during flusher times.

The office market is expected to stabilize in 2010 and may not recover in earnest for some time after that.

On a positive note, Downtown Los Angeles has proven to be a somewhat stable market, experiencing a 16.7% vacancy rate vs. about 14% a year earlier.

According to a panel of commercial real estate experts who convened on Friday, in spite of the area's woes, California may be down, but is not out. They cite the following reasons:

• California is prone to booms and busts, but since 1994, the state has exceeded national norms in terms of income, employment and population growth
• California, by virtue of its proximity, should benefit from the global recovery which is led by Asia
• The predicted flood of distressed assets has yet to materialize

It may be hard to swallow, but pundits predict that office valuations may end up being 30 - 40% off market highs achieved just 2 - 3 years ago. But, as punishing as these numbers are, they are remarkably consistent with the declines in the stock market and other artifacts of the bubble era.

Los Angeles Downtown News Picks 21 Most Significant Projects of the Past Decade

Los Angeles Downtown News is releasing its list of the 21 most significant projects in Downtown Los Angeles in the past decade. Here's a recap of their picks:

• 5. Safer Cities Initiative
  
• 6. Cathedral of our Ladies of our Angels
  
• 7. Gold Line
  
• 8. High School for the Visual and Performing Arts
  
• 9. Medici
  
• 10. Caltrans Headquarters
  
• 11. Standard Downtown
• 12. Elleven/Luma/EVO
• 13. Los Angeles State Historic Park
• 14. Art Walk
• 15. SCI-Arc
• 16. Rainbow apartments
• 17. Orpheum Theater Renovation
• 18. Edward R. Roybal Learning Center/Vista Hermosa Natural Park
• 19. Toy Factory/Biscuit Company Lofts
• 20. Pegasus
• 21. LAPD Headquarters

Any predictions for Picks #1 - 4?

Drumroll please ... they are:

• 1. Old Bank District
• 2. Disney Concert Hall
• 3. LA Live
• 4. Ralphs -- who knew a supermarket could cause so much excitement! But it is the first one Downtown in 50 years.
  

Market Lofts Auction: Some Market Prices and Some Sweet Deals Net Developer $20 Million -- Downtown Los Angeles, November 14

The Market Lofts Auction of 55 units in Downtown Los Angeles was a much anticipated event. The advertised $140,000 "starting bids" for 1 bedroom units got many eager buyers thinking -- is it possible that I can get into prime Downtown LA for a low, low price? As the auction hall swelled with bodies, it became clear that many people came to the event with the same question in mind. (For pictures of Market Lofts Units click here.)

Bidding was fast and furious right out of the gate and it quickly became clear that the "starting bids" were far below the actual selling prices. 754 sq ft 1 bedrooms, of which there were many, sold for $298,000 - $316,000. Were these bargains? "Fairly valued" is a better assessment, considering that the same size units on the 9th floor at EVO South, arguably a superior building, were selling for $340,000 as recently as a few months ago.

The rapid-fire pace continued unabated throughout the day. A few buyers were discouraged and left early, but many stayed until the end when four or five units retained by the developer were released for sale. The best deals of the day were the 2 bedroom, 2 bath units, that ranged in price from $393,000 for an 1,138 sq ft unit to $522,000 for a 1,427 sq ft unit. The total developer net was about $20 million -- not bad in two brief hours.

The $/sq ft varied with condo sq ft area. One bedroom units sold roughly for $370 - $420/sq ft and 2 bedroom units sold for roughly $310 - $360/sq ft, smaller units having a higher $/sq ft value.

The best deals of the day were a 880 sq ft unit for $310,000, a 1,076 sq ft unit for $362,000 and a 1,308 sq ft unit for $422,000. As the auctioneer states, all final bids are subject to seller acceptance, so there's no guarantee that these sales will go through.

The worst deals of the day were the first two properties auctioned. Both were 2 bedroom 2 bathroom units. One with 1,220 sq ft sold for $485,000; another with 1,427 sq ft sold for $522,000 -- the highest sale of the day. It's hard to explain why these two sales are so far off the norm in terms of $/sq ft value. Perhaps an adrenalin rush?

We can draw a few conclusions from this Market Lofts auction:

1) This auction seem to fairly value the lower-priced properties and to offer a discount on the higher-priced properties.

2) Values were fairly consistent throughout the auction, i.e., sequence in order of bidding did not matter.

3) The floor of $300,000 needed to buy into the South Park neighborhood was clearly established

4) The desire to own a slice of this Downtown Los Angeles real estate is very much alive.

8 Bankrupt Projects Shaping Downtown Los Angeles

There's plenty of good news to celebrate in Downtown Los Angeles residential real estate. A few major, recent, high-profile projects are more than 2/3 sold (Ritz Carlton at LA Live, EVO South, Rowan Lofts, Barker Block). Prices are off 20% or (significantly) more from their 2005 - 2006 highs. Downtown LA, ironically, is among the most affordable and most dynamic residential neighborhoods in the city.

However, what was conceived, purchased, and designed in the exuberant mid-2000s is now coming to market in maundering 2009. Developer equity has evaporated, bank loans are underwater, and some of these projects and their owners are facing Chapter 7 and Chapter 11 bankruptcy.

The Los Angeles Downtown News summarized the projects:

1. Concerto – 900 S Figueroa Street – All eyes are on South Park’s mega-project, Concerto. On August 29, a much-promoted auction attracted broad buyer interest and all 77 lofts units “sold” at the event – which was intended to fund construction of the uncompleted 271-unit tower. A few weeks later, developer Astani filed Chapter 11 after its major funder Corus Bank was taken over by the FDIC. The FDIC wants to get out of the auction contracts believing the sale prices were too low. A court ruling today makes it seem that the units may indeed get released to buyers.
   
2. The Roosevelt – 727 W Seventh Street -- The 222-unit Roosevelt, which was designed as a condo building, is now being leased. The website still advertises.”Have It All. Luxury condominium loft residencies from the mid-$500,000s to over $1,000,000. Planned Move-ins First Quarter 2009.”
3. The Flat – 750 S Garland Avenue – a former Holiday Inn was transformed into a 206-unit apartment building that also houses trendy dining spot Blue Velvet. Although the project is 90% occupied, the developer defaulted on its $23 million loan and filed for Chapter 11 protection. Ultimately, a judge allowed the bank to repossess the property.
4. 705 W 9th Street – Developer Meruelo Maddux, Downtown’s largest landlord, declared Chapter 11 in March and is going through reorganization. Despite the project’s woes, they are currently proceeding with leasing.
5. Title Guarantee Building – 411 W Fifth Street. This building opened two years ago as a rental and went into Chapter 11 this February.
6. Brockman Building – 530 W Seventh Street. Many may know this building as the home to Downtown hotspot Bottega Louie. The cost of updating the 80-unit office building rose from $16 million to $35 million early on, portending ill for the project. The developer filed Chapter 7 after defaulting on a $35 million loan.
7. Santee Village – 716 S Los Angeles Street. At the edge of the Fashion District, Santee Village, a hugely ambitious 780,000 sq ft, seven building development failed to achieve its sales goals. In April, the developer declared bankruptcy, exited the project, and its assets were sold off. The project has about 300 condo units and 150 rental units. One of the seven buildings is not occupied, and two are only 30% occupied.
8. Blossom Plaza Project – Broadway & College Street. Blossom Plaza was planned at the site of Little Joe’s restaurant, which had operated for 101 years at this site in Old Chinatown (but closed in 1998 because the owner’s couldn’t afford to retrofit the building). This transit-oriented project which received more than $9 million in public investment, was to include 262 apartments. The developer filed Chapter 11 and the project is now in the hands of original equity partner Morgan Stanley.

Although the failure of these projects has brought great distress to equity partners, banks and developers, the public that will benefit from the BKs through lower condo prices and a softer, more affordable rental market.

Inside Market Lofts - What's For Auction November 14?

Market Lofts, located on 9th Street between Flower and Hope in Downtown Los Angeles, will be auctioning its remaining 55 units on November 14. Updated 11/16/09 -- We attended the auction. See how the day unfolded by clicking here. This hot neighborhood is near the LA Live entertainment district, which as of this week will be home to the new $100 million Regal Cinemas LA Live Stadium 14, one of the most expensive new theater complexes in the country.

We had a chance to tour the units and we like what we see. The Market Lofts complex has many walkways and is not enclosed like an apartment building. It feels like a retreat in the center of the city.

There's also a nice pool, which many units face.

The low prices alone should drive buyers to the auction. This 2nd floor 2 bedroom-2 bath unit with 1,583 sq ft has a starting price of $295,000 ($186/sq ft). Expect bidding to be intense, these prices are 40-50% below comps on a square foot basis.

The units have wood floors, concrete ceilings and a loft-like feel.

The one bedroom units range in size from about 750 - 1,000 sq ft. This unit is 754 sq ft and has a starting price of $140,000 ($186/sq ft). Again, expect the sale prices to be far above the artificially low starting prices.

The bedrooms have an alcove bedroom.

The bathrooms are located near the front of the unit.

Many of the units have balconies, and the views towards the Concerto Complex (sold out, but in reorganization) are excellent.

Market Lofts
645 W 9th Street
Los Angeles, CA 90015

Auction information click here

Market Lofts in Downtown Los Angeles Auctions 55 Units November 14

Paddle-weary buyers who got burned at Concerto's August auction (the project got mired in bankruptcy proceedings shortly after its one-day sale event) have another shot at purchasing a prime piece of the hot South Park neighborhood in Downtown Los Angeles. Updated 11/16/09 -- We attended the auction. Read how the event unfolded here.

Market Lofts at 645 West 9th Street (between Hope and Flower) is having a one-day auction event November 14 when they are selling the building's remaining 55 units. One bedrooms start at $140,000 and two bedrooms start at $200,000.

These units fee like lofts and have polished concrete floors and 9'4" ceilings. They also come fully-equipped. Italian cabinetry, Whirlpool stainless steel appliances, and Caesarstone or granite counters are all part of the standard package.

Building amenities include pool, spa and large, landscaped terrace. All of the 347 Market Lofts units come with 1 parking space (or 2 if the units are over 1,200 sq ft). HOA range from $468 for the smallest one bedroom to $709 for the largest two bedroom.

The building sits atop one level of retail, including a much-heralded Ralphs Fresh Fare. Coffee shops, eateries, and other amenities are right on site, making this one of the best-serviced areas of Downtown.

A joint effort of national builder Lee Homes and Hollywood-based real estate developer-investor CIM Group, Market Lofts have been marketed since late 2007. Sales of this project have dwindled to a trickle in recent month, curtailed by competition in the South Park neighborhood from big, bold (and now bust) Concerto and pristine, polished, and not-much-pricier EVO South.

This auction event has the potential to produce some of the lowest $/sq ft sales in prime Downtown. Stay tuned ...

Auction conducted by Kennedy Wilson Auction Group