DTLA Construction, Investment Activity Bright Spot in SoCal
The Downtown Center Business Improvement District (DCBID) just released its Q3 2020 DTLA Market Report revealing that while the L.A. submarket remains in the grips of the COVID-19 pandemic, ongoing deals and development demonstrate continued investor interest in the area. While the report also shows inconsistent results across various market sectors, there remains a bright light on the horizon, with many real estate deals and projects that got underway or continued through the quarter.
Chief among them was the groundbreaking of Lightstone Group’s Fig+Pico hotel development across from the Convention Center and the groundbreaking of Lowe’s 2130 Violet, a 113,000-square-foot office project in the Arts District.
DCBID’s Suzanne Holley says, “Like much of the country, DTLA continues to deal with the economic impact of the pandemic. However, we are reassured about the future by all of the investment and development activity occurring throughout Downtown. Residents, workers and visitors remain passionate about their neighborhood, and investors and developers alike see great opportunity in the region. Once the effects of the pandemic begin to pass, DTLA will be well positioned for recovery and future success.”
Notable about many of the deals and projects is that the developers and investors are out of state or international concerns – illustrating broad continued confidence in the long-term value of the market.
Deals that closed in Q3 include Silverstein Properties’ acquisition of the US Bank Tower on Bunker Hill for $430 million (pictured above) and AvalonBay Communities’ purchase of the Showa Marine Cold Storage site in the Arts District.
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