Dear Friends and Family,
As we look back on 2019, Los Angeles County posts the highest sales volume of any market nationally. The Purple Line extension gets over one billion dollars in funding to journey from Century City to Westwood. We witness a record number of apartment deliveries in Downtown Los Angeles with almost 4,500 new units. All while the California multifamily industry braces for its latest battle against rent control expansion.
LA County Crowned Investment Capital of the US
Los Angeles County has become the most attractive and active place in the country for commercial investors after posting the highest sales volume of any market in 2019, surpassing Manhattan. The region saw more than $28 billion pour in for the fourth year in a row, according to CBRE. Manhattan and Seattle came in second and third with $25.9 billion and $25 billion, respectively, according to data from Real Capital Analytics.
Metro Secures $1.3 Billion Federal Grant for Purple Line Extension
The funding agreement, announced by Senator Dianne Feinstein, will cover more than one third the $3.6 billion price tag for the third section of the Purple Line extension, which will span roughly 2.5 miles between Century City and the Veterans Administration Campus in Westwood. The remaining funds will come from local sales tax revenue, as approved by Los Angeles County voters.
Nearly 4,500 Apartments Delivered in DTLA Last Year
Downtown Los Angeles’ apartment market is growing rapidly. Last year there were 4,447 new units delivered in the Downtown Los Angeles market, a 35% increase over the previous year and a new record for the submarket, according to a report from the DCBID. With the new deliveries, the apartment vacancy rate increased to 2.9%; however, rents remained flat at $3.22 per square foot and effective rents increased 1.4%.
Multifamily Owners Brace for Another Rent Control Battle
The California multifamily industry is preparing for another costly fight against a new rent control initiative on the November ballot. Earlier this month, the Rental Affordability Act, backed by AIDS Healthcare Foundation owner Michael Weinstein’s Housing Is a Human Right Organization, gathered 1 million signatures to qualify for its latest measure that, if passed, would expand rent control in the state.
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