Dear Friends and Family,
As the summer months fly by and the pandemic brings about new challenges, the outlook on Los Angeles real estate seems cautiously optimistic. The federal eviction moratorium, which has protected at-risk tenants impacted by the pandemic since September 2020, is set to expire at the end of the month. Meanwhile, local groups in LA’s Historic Filipinotown seek to have a hand in the changes and development happening in their neighborhood. Shopping malls, once the centers of American consumerism, are now being tapped for mixed-use redevelopment as more people engage with e-commerce. Finally, as the Olympics press on in Tokyo, Los Angeles awaits its turn in 2028 and considers how it will present itself on the world stage.
Biden to Allow Eviction Moratorium to Expire Saturday
“Given the recent spread of the Delta variant, including among those Americans both most likely to face evictions and lacking vaccinations, President Biden would have strongly supported a decision by the CDC to further extend this eviction moratorium to protect renters at this moment of heightened vulnerability,” the White House said in a statement. “Unfortunately, the Supreme Court has made clear that this option is no longer available.”
In an Effort to Guide Changes to Their Neighborhood, HiFi Community Organizations Take the Initiative
Historic Filipinotown is just south of Silver Lake and Echo Park, two neighborhoods that are often held up as prime examples of a working-class neighborhood-turned-hub of high rents, fancy bars and displacement. As new projects small and large continue to spring up throughout the neighborhood, some of Historic Filipinotown’s established community organizations have taken a proactive stance, reaching out to developers and working to build the kinds of projects they know the neighborhood needs.
Indoor Malls are Prime Candidates for Mixed-Use Redevelopment
While malls can be converted into any asset class, mixed-use properties offer the most upside. That is because assets on mixed-use sites generally garner higher rents. Apartments command 13.9% higher rents than apartments collected in non-mixed-use sites. The rents on office and retail have a premium of 8.6% and 7.3%, respectively. “Mixed-use construction tends to create a synergy between the existing retail and other property types, whether that is apartment, office, or hotel etc. “The retail is looked at by a prospective office or apartment tenant as an amenity and the retail tenants benefit from added foot traffic brought on by the increased density,” says Trantham.
All Eyes May Be on Tokyo, But LA is Making Moves for 2028 Games
One of those projects, a rail line through the Sepulveda Pass that would link LA’s Westside to the San Fernando Valley, was originally expected to open in 2033. Though the exact details of the project are still being considered, what is known at this point is that it will be either a monorail or a high-speed, high-capacity heavy rail line that runs between the Van Nuys Metrolink Station and the E Line, formerly the Expo Line, on the Westside. Some Valley residents and stakeholders think that, in addition to offering a public transit option through the oft-congested Sepulveda Pass, the project could invigorate the areas around new transit stations.
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