As we have noted in a number of our posts, the commercial real estate market is poised to meet a number of expectations as mixed use properties become ever more popular and necessary. The latest example is Blossom Plaza.
Set in Chinatown in downtown Los Angeles, the $100 million project will have 237 apartment units (which include 53 low-income rental units) retail space as well as a three level parking garage. Additionally, the property will have direct access to a Metro station, which will be an added perk for residents.
Not only is Blossom Plaza the latest addition to downtown LA, it is the latest example of developers rushing “quickly” to acquire cheaper locations in order to develop properties at a reasonable expense. Indeed, land around the Staples Center and LA’s downtown core have become increasingly expensive, so developers had to get creative about locations that would be suitable in bringing a quality product to the public. After all, when a building is built at a lower price point because of lower real estate costs, there are a number of options available to the developer.
As a result of this project, and a similar venture entitled Jia Apartments in 2014, upward pressure is being placed on prices per square foot. Yes, it has not reached the magical $1000 per square foot threshold, but they are stark reminders that the growing economy will create additional opportunities.
If you have questions about commercial real estate financing, so that prime opportunities do not pass you by, an experienced attorney can advise you.