Touring Architectural Homes in Venice, California: Minimalist Aesthetic Meets Maximalist Price Point

This is a post by Luke Jones.  Living in Venice one can’t fail to notice all these funky looking buildings and be curious to know what they’re like on the inside – so today I checked out the latest Architectural listings on the Venice market.

The first thing that struck me about this style of home is that there are so many things you can get wrong! Firstly, it’s easy to make an architectural home feel cold and sparse. It’s also easy to make it feel cluttered or unfinished. Unless you are a minimalist or are neurotically tidy, or unless you have a bold and radical style throughout, there’s always going to be things that don’t quite fit it. Even down to the shampoo bottles in the bathroom!

So, the first thing to think about when eyeing an architectural home is whether or not your lifestyle will suit this kind of home. The second thing that struck me about looking at architectural homes is that, for all the flair and imagination that goes into this style, it's actually pretty standardized these days. After all, there’s only so much you can do with brushed concrete! The real beauty of an architectural home is how it's possible to juxtapose your own life within the framework of an open space, showcasing your own style to the maximum effect…

The first property in Venice I looked at was the enormous and imposing 333 Indiana Avenue. From the outside, it looks like a rather drab apartment building but as soon as you enter through the heavy doorway, you immediately notice the sense of scale. The first floor, with concrete flooring and a basic kitchen that was obviously put in place by someone who had no intention of cooking, feels like a professional showroom. The master bedroom is bizarrely situated just off the kitchen on the ground floor and apart from the huge entry way / gallery space, and there is surprisingly little room to actually use for dining and seating. Upstairs is the "money shot": a massive open plan studio space with soaring 16 ft ceilings, exposed metal beams, maple floors and skylights – an incredible live-work space. This home is ideally suited for persons with an extensive art collection or someone who wants to work from home. And you’d have to be pretty successful – at $3,350,000 this property doesn’t come cheap. But for the square footage (5,632 ft), it's actually comparatively well priced.

The next property I checked out was at 135 Brooks Avenue. Situated on the busy intersection of Main and Brooks, this corner lot has a more homey feel to it than the first one. The open plan living room / kitchen is quite small and, although it has large windows stretching to the ceiling, since it’s on a small lot in a crowded subdivision, it feels a little gloomy. However, it does have high vaulted ceilings giving an impression of scale. A curiously dark stairwell leads up to the second floor where you have two guest bedrooms, one of which is more suited to being a decent guest bedroom benefitting from large windows looking onto the quieter alley way below and a sizeable walk in closet. The smaller of the two guest bedrooms would be fine for a queen or adequate as an office / study. The master bedroom and bathroom is on the third floor and features a large, walk-in closet and an open-plan feel with curved walls that sweep onto a small, functional roof terrace. This attractive and funky home feels like a starter pack for someone who wants to dip their toe in the architectural lifestyle without having to contend with big open spaces or imposing architecture. I think it’s overpriced at $1,595,000 or $844 / sq ft, but with parking for 3 cars and with 3 bedrooms, perhaps one could rent out a room to a lodger.

Next up is a condo with a town house feel. Based on another busy intersection (Brooks and Pacific), number 49 Brooks Avenue is a large, bright unit in an eye-catching condominium block. A stone's throw from the boardwalk, this has an urban feel to it (urban by Venice standards, that is), but with your own entrance, you’d forget that you’re in a shared co-op. There is plenty of natural light throughout, and there is a bright gourmet kitchen with a large island as the main feature of the room. This is an entertainer's house, no doubt, and the entire layout and vibe feels very welcoming, fresh and breezy. The bedrooms are well-proportioned and the master bedroom has a fabulous corner window that looks towards the sea and the mountains. Furthermore, the unit features its own private balcony with 360 degree views and a wood-burning fireplace. With parking onsite for two cars and a clean, modernist exterior, this certainly has the feel of a single family architectural home but with the price of a condo. At $1,475,000 or $636 per sq ft, this is a bargain compared to the previous property at 135 Brooks. The big drawback is the proximity to the busy street -- but that only adds to its urban feel.

A little ways down pacific and set back from the busy street on a quiet walk street is 35 20th Street. At $1,295,000 this 2,000 sq ft lot is currently divided into a duplex giving some rent return on your investment. But this is where the good news ends. This very peculiarly designed architectural home feels clustered and confused. Whilst it features a nice front yard on a peaceful walk street and even though it fits in perfectly with all the other eclectic homes in the neighborhood, it all feels very over designed. Strange cabinetry at odd angles make rooms feel cramped; tiny bathrooms with barely room to swing a cat feel like they’ve been designed without any thought for luxuriating; and, annoying metal spiral staircases that creak and groan as you walk noisily up them make the place feel like you’re in a half-finished experiment. Also - and this is an observation of mine as someone who used to live on a walk street – as nice as it is to have the pedestrian walk street on one side, you have to remember that you’ve got the drug ridden, trash-can strewn, urine-smelling alleyway on the other side. No, sadly this one wasn’t for me. But then again, if living close to the beach with all the action in a quirky, crazy home is your cup of tea – check it out.

So, feeling a little dismayed, I made my way back home via one last property on California. Another world from the beach side of Venice, this is towards the Lincoln end of Venice. Immediately seeing that it was bang opposite a busy high school, I was expecting the worst. But lo and behold, it turned out that this was the best home I’d seen all day. No 844 California Avenue, with 3 bedrooms, 3 baths, 2 car garage, nice yard, roof deck with 360 degree view and warm open layout with distinguishable areas makes this an all-in-one hit and at $1,445,000, comparatively a bargain in relation to the previous property that had so many things wrong with it. This stunning home has a warm, inviting feeling with impeccable style. The rooms are well-proportioned and with bright, maple floors throughout there’s both an air of continuity but also individuality. The drawbacks to this property are: (1) the proximity to the school, which would be a noise nuisance during the week; (2) heavy traffic; (3) the fact that it is not situated in the heart of Venice but nearer hectic Lincoln Blvd.  Weighing these downsides against the sensible pricing and terrific design and proportions, I think this architectural home perfectly achieves the balance of modernism, space and warmth.

Exploring North Santa Monica Homes in Neighborhoods that Rival John Hughes' Suburban Paradises

This is a post by Luke G-Jones.  Santa Monica, famed the world over for its beaches, tourist attractions, pier, and bustling shopping centers, has a diverse and eclectic residential community ranging from enormous beachside architectural homes, to small run-down craftsmen cottages, high-rise condominiums, and modest apartment complexes. Surrounded on three sides by the city of Los Angeles, with Pacific Palisades to the northwest, Brentwood to the north, West LA to the northeast, Mar Vista to the east and Venice to the southeast, Santa Monica has a rich and diverse history that is exemplified in its varied and sometimes non-sensical real estate.

Today, I toured around an area of Santa Monica to the north, close to the border of the Palisades. This area is widely regarded as one of the more upscale and salubrious neighborhoods of the westside. Funnily enough, when I first moved to LA, I lived in this neighborhood in a small apartment building on the corner of 3rd and Montana. To me, it felt like a calm, suburban neighborhood and pretty much summed up my idea of what I thought beach living was meant to be like in Southern California. It feels safe. It's clean and it's the kind of area that could appeal to young professionals who want to live an urban lifestyle with all the benefits of being close to the beach, or to a well-heeled family that requires lots of space whilst having proximity to all the shops and some of the best schools in LA.

First up was 135 Palisades Avenue, just a couple of blocks north of trendy Montana Avenue and a mere half block away from the bluffs of Santa Monica and the beach. This sprawling, magnificently well-proportioned villa is a cross between Spanish, French and modernist architecture with large bright rooms that spill onto a spacious back yard that has been landscaped to include a large lawn area, a tiled patio, and a pool area with a garage / guest house. It has a hefty price tag at $5,961,000, but it's been reduced by around 10%. I really liked this property and with its proximity to the beach and shops on 3rd Street Promenade, I think it has a lot to offer. It features 6 bedrooms and 7.5 bathrooms. The interior design is really cool, with each room having its own distinct style. Whilst quite modernist inside, it seems to blend well with the more traditional Mediterranean architecture throughout.

Next up is 335 24th Street. Much further from the beach, this site feels like something out of a John Hughes movie with its tall conifers and wide, straight roads. The property itself is a Spanish-style home surrounded by lush landscaping, including a carp pond and fountains. There are 5 bedrooms and 4.5 baths with a large open plan kitchen / living room which would make an excellent space for entertaining. There is also a large wine cellar and a spacious family room adjoining the kitchen with French windows out to the yard featuring a stone pizza oven. This house has very particular decor and it’s a little hard to envisage what it would be like empty, but the space is certainly interesting. Whilst large and expansive, it also has a cozy family feel to it. It is on the market for $3,995,000.

After seeing two homes that have that 'lived-in' feel, I took in a couple of brand new constructions. First up was 342 12th Street, once again North of Montana in North Santa Monica. This Mediterranean-style, three-story home features 5 bedrooms and 6.5 bathrooms with a huge basement with a bedroom, game room, media room, craft room and two additional spaces that could be easily customized. The property was entirely staged, but it’s basically a blank canvas. All modern appliances throughout with a full bar in the living room, a gourmet equipped kitchen and fairly spacious back yard with a detached private two-car garage. The odd thing about these new builds is the feeling that they're all just a bit, well, generic. And, it is this real estate agent’s opinion that when one tries to dress mutton as lamb, you run the risk of coming off a bit cheap. Example: throughout the property there are old-fashioned style iron banisters, railings and lamp fixtures. Who are we trying to kid? For me, I'd rather just see an entirely blank space with options to choose the interior design upon purchase. But, I'm splitting hairs. It's still a solid property with lots of potential. Of course, you're paying for the location. $4,600,000 for a mock Spanish home is steep, but if you want something modern and sturdy in a class-A neighborhood, then this one could be for you.

Listed by the same agency and located just a few blocks away is another new build at 534 19th Street. Very similar in design (same bizarre wrought-iron fixtures throughout) and yet without the benefit of the spacious basement below, I'm trying to figure out why this property is $250k more at $4,850,000? Granted, the lot size is bigger and it benefits from an expansive yard that could accommodate a pool, but it’s not nearly as well proportioned and is also further away from the beach. I would say that the kitchen / dining room, facing onto the back yard is a nicer design and since it has not been staged and is completely empty, I think it will be easier for someone to envisage living there. But the same problem remains; it’s a brand new build with no real character. Why would someone pay close to $5 million for something so generic?

So, perhaps I'm not such a huge fan of new builds. Perhaps I'm more attracted to homes with a bit of character and that 'lived-in' feel, but plenty of people want a blank canvas and so there is plenty of that in North Santa Monica. But some people may want more privacy or seclusion, particularly when forking out such a lot of money for a fairly urban environment. I think this is where Santa Monica defines itself. It is a densely populated part of LA that has gone through a boom since the 1980's and is no longer the sleepy little beach community it once was. If you're looking for a secluded compound without feeling like you have neighbors around you, then North Santa Monica may not be for you. But if you're looking for a little bit of suburbia within the center of the city, then North Santa Monica has it all.

On The Money: $4 - 12 million Los Angeles Multifamily Sells in Narrow Band of 9.65 - 9.85 GRM in mid 2010

What's happening in the mid-size apartment category in Los Angeles, those with 40 units or more, and priced in the $6 - 12 million range?

A few very apparent trends: 1) Opportunities are few, with thin inventory reaching market; 2) Demand is strong and buyers are willing to pay a remarkable 97.1% of asking price; 3) Returns for these assets are remarkably consistent with GRMs in the 9.65 to 9.85 GRM range; and, 4) The trend (excluding Beverly Hills, natch) was consistent from Palms, Sherman Oaks, Koreatown/Mid-Wilshire to Hollywood. 

Given the attractiveness of the returns on these buildings (cap rates above 6.0%) when compared to other "low risk" investments (like T-bills near 0%), the market dynamics are characterized by a moderate number of well-capitalized investors pursuing a small number of worthy investment properties.  The result: quick sales and finely-calibrated returns.

Buyers seeking distressed options in this market should turn their sights elsewhere.  Financially robust owners of these assets sell them to other sound buyers -- with an absence of short sales, loan work-outs, bankruptcies, etc.  This market segment is stable.

Palms is a perennial favorite for investors who love the Westside location, the proximity to the 405 and 10 freeways, and the below-average 3.8% vacancy rate.  10705 Rose Avenue with 60 units sold for $11,650,000 or $194,000/unit.  The building has 62,116 sq ft of living area and was constructed in 1962.  This complex has two buildings, is freeway adjacent, and is one of the few multifamily properties of this size to come to this desirable Westside market.  GRM was 9.71

Over the hill in Sherman Oaks, 14355 Huston Street, with 74 units sold for $9,400,000.  This amounts to $127,000/unit.  This 1969 complex is set on 1.38 acres, has a fitness center, swimming pool, and "park like" amenities, and was recently upgraded with $850,000 in improvements.  50 of the 74 units are renovated.  The complex has 48,186 sq ft of living area.  Unit mix is 72 (1) bedrooms plus (2) singles.  GRM was 9.85

530 S Catalina Street in the Koreatown/Mid-Wilshire neighborhood with 45 units sold for $6,200,000.  This amounts to $138,000/door.  The building has 36,929 sq ft, was built in 1971, and just had $1.1 million in renovations completed in 2007 - 2008.  This is on the high-end in terms of quality of upgrades in the Koreatown/Mid-Wilshire neighborhood.  GRM was 9.63

At the border of Hollywood and Los Feliz, 1616-1620 Normandie, a two building complex with 46 units, sold for $4,425,000.  The larger building is a 1920's "bricker" and the smaller one of mid-century vintage.  The sale is at $96,000/sq ft, although the average unit only amounts to 544 sq ft (total is 25,032 sq ft).  This multifamily property is adjacent to the high-end homes of Los Feliz as well as Griffith Park.  GRM was 9.65

There are exceptions to every rule, and in the Los Angeles market Beverly Hills is that case that breaks the mold.  133 N Almont Drive, near Wilshire and Doheny,  sold for $5,775,000 or $304,000/unit.  This was a court-ordered sale, the majority of the 19 units are unrenovated (and with below market rents), and average between 1,100 - 1,400 sq ft.  In total, the 1961 building has 26,291 sq ft.  This Beverly Hills property "tips the scales" in terms of cost per door.  The reality is, few assets of this sort are for sale, and like in all other property types, the "Beverly Hills premium" is very much alive and well today.

Pacific Palisades Home Sales Start at $1 million, Median Price $2,075,00 - Top Sales in Palisades Riviera

From the sun-dappled bluffs of the Palisades Riviera, to the nature-shrouded estates of the Palisades Highlands, all the way to the ocean-kissing heights of Castellamare, the Pacific Palisades remains one of the most sought-after swaths of real estate in Los Angeles -- and the nation.

The recession seems very much in recession in this prime area of Westside real estate. Of over 100 home sales in the past 3 months, all but two were over $1,000,000. The median sale price for a home in the Pacific Palisades during this period was $2,075,000 or $677/sq ft.

The top sale of the past three months in the Pacific Palisades was $10,000,000, for an estate that encompasses the iconic Case Study House 9, designed by Charles Eames and Eero Saarinen.  This legendary piece of architecture is now the guest house for a fully loaded estate that includes 6 bedrooms, 6.5 baths, 8,500 sq ft of living area on a 43,500 sq ft lot.  Top design, top location, top price.

Down the road, in the Palisades Riviera, 1272 Corsica Drive, with 5 bedrooms, 7.5 baths, 8,078 sq ft on a 17,292 sq ft lot sold for $6,500,000.  This custom built Cape Cod estate even includes a 23 seat movie theater.

Nearby, in the Riviera Rim, 527 Spoleto Drive, offers ocean and city views, and sold for $5,300,000.  The 1965 house has been fully updated and has 5 bedrooms, 6.5 baths, 5,953 sq ft of living area, and 14,374 sq ft lot.

Still in the Palisades Riviera, 1136 Corsica Drive, 2008 new construction, sold for $5,205,000.  This Mediterranean villa has 6 bedrooms, 6.5 baths, 5,912 sq ft of living area and a 14,000 sq ft lot.

But, alas, the Palisades, embracing the luxury and comfort of Westside living, is not without its inklings of distress.  720 Almar Avenue, was sold in foreclosure for $2,150,000.  The house is remodeled and has 5 bedrooms, 4.5 baths, 3,827 sq ft of living area on a 6,359 sq ft lot.

Short sales in some cases prove to be the best deals on the market, and we think 1356 Piedra Morada Drive was quite a steal at $2,630,000.  The tennis estate, has a pool and includes 5 bedrooms, 5 baths, 5,467 sq ft of living area on a 21,546 sq ft lot.

Westside Income 2nd Quarter 2010: Santa Monica, Palms, Mar Vista Rack Up Modest Sales of Buildings Under 10 Units

Westside income property sales during the 2nd Quarter 2010 were anemic, with only an odd smattering of buildings selling, all under 10 units, and with a top selling price of $1,770,000. This diverges from the 1st Quarter 2010, when three buildings sold for around or above $3 million in Santa Monica.

What is the explanation for this lackluster sales environment? Perhaps it can be explained by the lackluster economy. Or, fears aroused by the downwardly cascading Dow, which lost about 1,200 point during the 2nd Quarter. Or fears about unemployment, which showed no signs of declining. Or fears about the widening trade deficit, decline in residential sales, or ... you fill in the blank. Or maybe it was the product being offered, that failed to inspire investors.

Whatever the cause, the Quarter was characterized by modest trades. All the buildings we analyzed in Santa Monica had six units and sold between 11.2 and 13.1 GRM. This compares to 11.7 - 14.2 GRM during the 1st Quarter 2010. Although the GRM appears to be declining, because of the diverse range of building type and neighborhood, we fail to draw any conclusion about prices dropping.

In Palms-Mar Vista, sales during the 2nd Quarter 2010 ranged between 6 and 9 units, with GRMs between 10.7 to 12.0.

2228 West 20th Street in Santa Monica, with 6 units and 7,539 sq ft of living area sold for $1,770,000 and a 13.1 GRM.

953 21st Street in Santa Monica, with 6 units and 6,249 sq ft sold for $1,700,000 and a 13.2 GRM.

1527 Princeton Street in Santa Monica, with 6 units and 5,864 sq ft sold for $1,665,000 and an 11.2 GRM.

1533 Yale Street in Santa Monica, with 6 units and 4,537 sq ft, sold for $1,246,000 and 11.7 GRM.

3600 Empire Drive in Palms-Mar Vista, with 6 units and 6,657 sq ft, sold for $1,550,000 and a 12.0 GRM. This is a non-rent controlled building.

12731 Mitchell Avenue in Palms-Mar Vista, with 9 units and 7,588 sq ft, sold for $1,475,000 and an 11.6 GRM.

3720 Westwood Boulevard in Palms-Mar Vista, with 7 units and 6,453 sq ft, sold for $1,201,000 and 10.3 GRM.

3737 Vinton Boulevard in Palms-Mar Vista, with 8 units and 6,347 sq ft, sold for $1,151,000 and a 10.7 GRM.

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We have our finger on the pulse of the income property market and our eyes peeled for excellent buys. If you have any questions about income properties, please contact us by clicking on this link to send us an email or by calling us at (310) 845-6810.

You can also subscribe to our quarterly Los Angeles Investment Property Newsletter, by clicking on this link. To see a sample of the newsletter, click on this link.

Century City Watch: Century Plaza Hotel Gets Stay and Two 46-Floor Mega Towers as Backdrop

Conservationists have successfully prevented developer Michael Rosenfeld from razing Century City's historic Century Plaza Hotel, the 1966 mid-century masterpiece designed by Minoru Yamasaki. Now the public can debate the new plan for the site, which encompasses construction of two 46-floor towers, and will be one of the Westside's largest developments in decades.

The site profile by the numbers: 100,000 sq ft of offices, 94,000 sq ft of retail, 290 condos in the towers, and 394 hotel rooms and 63 condos in the Century Plaza Hotel.  The project is anticipated to come online in 2014.

Our reaction to the plan: wow, that's a helluva lot of office space.  And retail space.  And condos.  Is there a demonstrated need for such a mega-project?

During the economic downturn, the average square footage allocated to an attorney has gone from approx. 900 sq ft to 600 sq ft -- and there's still plenty of vacant office space across Westside LA.  What firms are going to occupy these new offices?  And how much retail do we need?  The average worker has become woefully impoverished and is hitting the discount chains, which are unlikely to come to this Century City locale.  Furthermore by 2014, so much retail will have moved to cyberspace, obviating the need for bricks and mortar stores.  Finally, the proposed condos are certain to be in the luxury vein, and the market is currently having difficulty absorbing what has already come on line.

The project will certainly bring much needed construction jobs to the area, but the developers' optimistic view that this project will be supported by an upswing in the economy seems to be another instance of overspeculation -- that got us into this economic quagmire in the first place.

New plan for Century Plaza Hotel adds two 46-floor towers [Los Angeles Times]

Beverly West, Wilshire Corridor, and The Century, Century City Debut High-End, High-Rise Living on the Westside

After many years of construction, two Westside luxury residential towers, Beverly West on the Wilshire Corridor, and The Century, in Century City, have reached completion.

Northeast View from the 17th Floor towards Hollywood Hills

We had the opportunity to take a hardhat tour of the Beverly West and we love the (almost) finished product.

With only 35 units, the Beverly West is intimate, off Wilshire Boulevard (entry and egress is on Club View Drive), and offers incredible views over the green fairways of the Los Angeles Country Club to the Hills, Downtown, and the Beach.

The developers of the Beverly West, Emaar Properties, thought big.  The rectangular-shaped building is carved up into full-floor penthouses of over 8,000 sq ft (Floors 18 - 22) and half-floor plans on the lower floors of approximately 4,000 sq ft (Floors 5 - 21).

The 14th Floor model unit shows off the building brilliantly.  Walk out of the elevator into a private foyer that leads to a huge, open living-entertaining-kitchen area.  To one side is the master suite, to the other side are two bedrooms and two baths.

Wood, marble, stone, and tile, have all been combined in a pleasing, classic palette that will, like a fine, old bottle of Bordeaux, will never go out of style. Imagination is the only limit in terms of how each unit can be customized to the owner's tastes.

The huge master suite offers lots of room.  The model has been modified so that the 3rd bedroom is converted into "his" dressing room (equality of the genders now dictating that the man get equal closet space.)

The master bath offers one of the best views from a sunken tub anywhere in Los Angeles.

Marble in the master bath goes from floor to ceiling, and past the steam shower is the large, finished walk-in closet with exquisite cabinetry.

Since sales have been rolled out in a "soft" opening, prices on certain units at the Beverly West have been lowered.  An 8th floor unit is priced in the $4.5 million range, around $1,150/sq ft.  Prices increase by floor, and by the 17th floor, asking prices are around $1,950/sq ft (around $7.5 million.)  Given the exemplary, "world-class" product and location, these homes have attracted buyers, and units are going into contract.  HOA dues are just over $5,000/month for the typical "half floor" unit.

In other news, the Los Angeles Times reports that The Century, the Robert-Stern designed, 140-unit, 41-story luxury tower in Century City, has been completed, and is now approximately 25% sold. The Art-Deco-inspired Century distinguishes itself by its classic style, akin to the type of building you'd find in Manhattan from the 1920's or 1930's.  The units there have been lowered approximately 25% in price, reflecting the soft market.

We previously reported on the units at the Century and we loved the blend of refined luxury and retro-modernity.  The floorplans, a quadrant of an ellipsoid-shaped building, make for original layouts.  And the views are unobstructed in all directions.

The sales at Beverly West and The Century will both be aided by their completion.  Although virtual tours are great, there's nothing better than seeing a building that is live, up, and operating before laying down a cool (few) million.

Beverly West
1200 Club View Drive 90024
Emaar Properties

The Century
1 Century Drive
Los Angeles, CA  90067
Related Companies

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Adner Realty Group has its finger on the pulse of the Los Angeles condo market. If you have questions about the Beverly West, The Century, or other buildings, please call us at (310) 845-6810 or email us by clicking on this link.

Los Angeles Apartment Vacancy Rate 5.4%, up .4% in 1 Year and 1.4% in 2 Years. Anyone Surprised? It Could Be So Much Worse.

Considering the recent economic turmoil and its impact on consumers' pocketbooks, the apartment vacancy data for the City of Los Angeles looks surprisingly robust.

From 2006 - 2010, vacancies have risen steadily from a baseline of 3.5% to the current 5.4%. Not great news for the average apartment owner, but certainly no reason to hit the panic button.

The vacancy breakdown of the four geographic areas in March 2010:

• Central Los Angeles: 5.5% -- 416,000 units
  
• San Fernando Valley: 5.2% -- 224,000 units
  
• West Los Angeles: 6.1% -- 116,000 units
  
• Harbor Area: 4.0% -- 31,000 units

The largest district, Central Los Angeles, includes neighborhoods like Wilshire (95,000 units, 5.4% vacancy), Hollywood (75,000 units, 6.1% vacancy), South Central (49,000 unit, 7.2% vacancy) and Silver Lake / Echo Park (18,000 units, a low 4.7% vacancy.) The lowest vacancy was recorded in Boyle Heights (3.8%).

The second largest district, the San Fernando Valley Area, includes North Hollywood (42,000 units, 5.1% vacancy), Van Nuys (37,000 units, 5.1% vacancy) and Sherman Oaks-Studio City (5.3% vacancy). The lowest vacancy was in Pacoima - Sun Valley (3.9%).

West Los Angeles, the third largest area, includes Palms-Mar Vista-Marina del Rey (35,000 units, 4.8% vacancy - the lowest in the area), West LA - Century City - Rancho Park (30,000 units, 5.3% vacancy), Westwood (15,000 units, 6.6% vacancy), Venice (13,000 units, 9.1% vacancy) and Westchester-Playa del Rey (12,000 units, 7.7% vacancy).

The Harbor Area, includes San Pedro (14,000 units, 4.4% vacancy), Wilmington-Harbor City (10,000 units, 3.0% vacancy) and Torrance-Gardena (7,000 units, 4.8% vacancy).

Our conclusions? Higher priced markets (Venice, Playa del Rey, Westwood) are suffering the highest vacancies as landlords fail to drop their rents sufficiently to attract and retain the new breed of thrifty tenant. More moderately priced areas (Palms-Mar Vista on Westside, for example) are recording low vacancy rates.

Vacancy rates are likely to peak in 2010 and gradually decline in 2011 as the pipeline of new dwelling units declines and as fiscally-stricken Angelenos begin to work again, and move off their roommate's couch or out of their childhood bedroom.

Data comes the Department of Water and Power and its records on individually metered apartments. We consider this the best reflection of the market, although it does not cover records from the cities of Santa Monica, Beverly Hills, West Hollywood, etc.

Westside Los Angeles Home Market Bottomed in December 2008 - Median Sale Price Trends Down 15% to $1.7 Million

We checked in on the Westside Los Angeles neighborhoods of Bel Air - Holmby Hills, Beverly Hills, Beverly Hills Post Office, Brentwood, Pacific Palisades, Santa Monica and Westwood - Century City to see how sales and prices are trending. This is some of the most sought-after real estate on the West Coast (and perhaps the world) - how has real estate fared during the tumultuous past couple of years?

Quite well, all things considered. The percentage of homes under contract in the over-$2 million sector reached a low during the midst of the financial crisis during the Winter 2008 - 9 and has been on the upswing ever since.

The market of under-$2 million homes has been showing robust signs of recovery. The percentage of homes under contract in this sector bottomed out during the same winter 2008 - 9 period and is now far exceeding sales levels of two years ago. 2010 is shaping up much more like the 'good old days' of 2007 rather than the 'dark days' of 2008 - 2009.

The improvement in sales may partially be attributed to the decline in median price of Westside homes. The median sale price in Bel Air - Holmby Hills, Beverly Hills, Beverly Hills Post Office, Brentwood, Pacific Palisades, Santa Monica and Westwood - Century City has declined about 15% since its high of two years ago. Median sale price has trended down from $2.0 million in April 2008 to $1.7 million in April 2010.

Anyone looking for "fire sale" prices or a collapsed market better look elsewhere. Westside Los Angeles is sprinting to a very nice housing recovery.

Westside Income Q1 2010: Santa Monica's Allure Untarnished - Side-Lined Capital Seeks the Few Best-Priced, Best-Quality Assets

Multifamily properties in Santa Monica traded in the narrow band of 11.7 - 14.2 GRM during the 1st quarter of 2010. All of these properties were within 1 mile of the beach and offered the best combination of price, quality, and unit mix of those listed.

The short sales and foreclosures that have plagued the local residential market have not much impacted the Westside multifamily property sector. Most owners are well-capitalized and despite the fact that vacancies have crept up and rents have declined, few owners have been forced to liquidate their holdings.

There is great diversity of product on the market. We see the strongest interest in the few non-rent controlled buildings and B-or-better quality buildings in B+-or-better quality neighborhoods. We see the weakest interest in buildings that have below-market rent-controlled units and that are near Freeways or on major streets.

There is a flight to quality and the realization that we may not in our lifetimes see a 7% cap anywhere on the Westside.

1101 Bay Street in Santa Monica sold for an 11.7 GRM. This building has 16 units, 15,788 sq ft of living area, and sold for $3.2 million with gross income of $272,000. 8 x 1 br, 8 x 2 br.
1137 11th Street in Santa Monica sold for an 14.2 GRM. This building has 11 units, 13,913 sq ft of living area, and sold for $3.0 million with gross income of $212,000. 3 x 3 br, 6 x 2 br, 2 x 1 br.

908 4th Street in Santa Monica sold for an 13.1 GRM. This building has 18 units, 7,760 sq ft of living area, and sold for $2.98 million with gross income of $227,000. All units are singles. This is a non-rent-controlled building.
3728 Delmas Street in Palms-Mar Vista sold for an 11.4 GRM. This building has 8 units, 11,045 sq ft of living area, and sold for $2.1 million with gross income of $185,000. 2 x 3 br, 4 x 2 br, 2 x 1 br. This is a non-rent-controlled building, and we think this is the best deal of the quarter.
1257 9th Street in Palms-Mar Vista sold for a 14.4 GRM. This building has 5 units, 4,220 sq ft of living area, and sold for $1.3 million with gross income of $90,600. 1 x 2 br, 3 x 1 br, 1 x 0 br.

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