Why 22,000 New Units is Nowhere Near Enough for Downtown LA

Despite tripling the number of new multifamily units in DTLA over the past 15 years—and another 22,000 proposed or under construction—there's still a major shortage, according to Hal Bastian, who has been working on the revitalization of Downtown for decades.

Hal led off Bisnow's 5th Annual Evolution of Downtown event in Chinatown yesterday, telling more than 550 real estate pros in attendance that DTLA is spreading, with projects popping up everywhere from South Park to The Historic Core. There may be no better example of the renaissance than City Constructors' creative office repositioning at 1418 N Spring St, where the event was held. Just five years ago, no one would consider Chinatown a destination for such a project.

Of course it goes much further than that, as Downtown is booming like no other area in SoCal. Hal says there are some 2,700 hotel rooms in the works, more than 1.3M SF of office space and 2.1M SF of retail headed to the region. 

The most buzzworthy multifamily project in Downtown is the $1B Metropolis from Greenland USA. Director Ryan Aubry says the Chinese development firm was attracted to LA because it's a city in transition. The project has been some 25 years in the making and construction on Phase 2 began in December. And in customary Downtown Dog-friendliness, Metropolis will have three dog parks. But don't worry, Ryan says, it's human-friendly as well.

And if talking about the white hot multifamily market wasn't enough...there's always puppies. Bisnow is partnering with The Dawg Squad, an all-volunteer animal rescue focused on homeless and abandoned dogs—providing medical care, rehabilitation and loving foster homes until permanent, adoptive homes can be found.

Phase 1 of the Metropolis began construction last summer and will consist of two towers. The first is the 18-story Hotel Indigo, which will include 350 rooms; and the second is a 38-story condo tower. Phase 2 will add another 1,250 condos in two more towers.

Also on the for-sale front is Trumark Urban's Ten50 S Grand. Managing director Arden Hearing says the decision to go condo instead of apartment was quite simple for his firm: There are currently zero available condos in Downtown. "You don't have to be a rocket scientist to be excited," he says. The 25-story project will include 151 residences and some top-notch amenities, including a lush lounge and pool complete with cabanas, outdoor fireplaces, a screening room and a yoga garden.

Our multifamily panel was moderated by Loeb & Loeb partner Paul Rohrer (snapped here with Christopher Loos from Urbanize LA), who says Downtown is evolving to be more like that famous city on the other side of the country, which seems to have the lock on the term "boroughs." 

But developers also are banking on strong demand for rentals, and ICO Group director Joseph Soleiman says the pro-development stance of Downtown has been a great attractor. The company's Broadway Lofts is a case study in adaptive reuse, having repositioned the more than century-old Bumiller Building, built in 1906, into some very cool apartments.

Another major multifamily project in the works is Trammell Crow's La Plaza Cultura near iconic Olvera Street. SVP Jim Anderson says there's "an insatiable demand" for apartments in Downtown, and his company's project is one of the few with families in mind. The $140M mixed-use project will consist of 355 units—20% of them affordable—plus 45k SF of ground-floor retail and restaurant space. But unlike a lot of DTLA buildings, the project will have some three-bedroom units. "The family demographic isn't there yet, but it's coming," he says. Check back tomorrow for more coverage from our massive event, including how Downtown could be LA's next big tech hub.