Los Angeles Property Headlines (Feb 22nd 2019)

Below we highlight the latest trending real estate news and property headlines in Los Angeles.

Forever 21, the Los Angeles based fast-fashion brand has sold its headquarters for $166m to the Blackstone Group. The private company founded by Jin Sook Chang and Do Won Chang utilized the property as a warehouse, distribution and logistics facility. As per Forbes, in 2017 Forever 21 reported revenue of $3.4 Billion. The sale occurs amidst a high demand for industrial facilities encouraged by a growing e-commerce sector. – L.A BUSINESS JOURNAL

Glendale City Council pass law that requires landlords to pay tenants relocation fees if they raise the rent more than 7%. The law known as the Right to Lease ordinance aims to strengthen rent control measures in a bid to prevent further displacement of residents owed to the rise in local rents. The policy also requires landlords to provide year-long leases to tenants to enable them easily budget for their monthly housing expenses. — CURBED LOS ANGELES

Construction for the $1 billion mega-development in Downtown Los Angeles begins. The project known as “The Grand” was designed by renowned L.A architect Frank Gehry who has drawn other iconic landmarks such as The Broad museum and Walt Disney Concert Hall which are also across the street from the mega project. Related California, the developers overseeing construction confirmed that the development will be complete in 2021 and will create 10,000 new jobs. — CBS LOS ANGELES

“The Grand” project

The high cost of construction and land in Los Angeles and Orange County prompts Sonnenblick real estate development firm to move to Florida. Bob Sonnenblick chairman of the development firm confirms that the company is opening a new office in Brickell neighborhood of Miami, and future property investments will be directed towards the South Florida real estate market. According to research conducted by Terner Center for Housing Innovation, construction costs rose 13.6% in Los Angeles compared to an average of 12% in other U.S. cities. The research also noted that the costs of materials rise by around 4% to 5% annually. — BISNOW

A recent report indicates Chico, California, is still a hot real estate market in the U.S. The town recorded a boom in property demand as a result of the unfortunate California wildfire that burned down thousands of homes in the mid-sized city. The report indicates that the price of a median home in the area as compared to the prior year rose by 15% to an average price of $330,000. – NBC NEWS

Co-working company We work finally opens modern offices in downtown San Jose’s River Park Towers alongside San Jose Mayor Sam Liccardo. The new set of offices aim to offer entrepreneurs and startups working spaces at a 10% discount price. We work is striving to offer affordable working spaces for the “Little guys” in business amid a business environment where tech giants such as Facebook, Apple, Google, and Amazon have taken enormous amounts of space thus driving up rent costs. — THE MERCURY NEWS

Properties on Wilshire Boulevard with development opportunities have been listed in the market for sale. According to property records, the two buildings located at 5070 and 5151 Wilshire Boulevard are owned by Ehlers Investment Company. The buildings cover 339,000 square feet and are leased by a service center and Sonic Automotive for a BMW car dealership. The buildings are located in a level-3 Transit-Oriented Community (TOC) with a current rent of the two buildings priced at $3.53 per square foot. In regards to the TOC program launched by Los Angeles city, potential buyers/developers will enjoy various incentives and density bonuses. — THE REAL DEAL

Construction is underway to transform the former LA Times Orange County press printing property into an office space, food hall, and shared work-spaces. The $200 million Costa Mesa development project is intended to lure the millennial workforce with the planned construction of 380,000 square feet for office space. The project will also feature a dog park, walking trails, landscaped outdoor work-spaces, and a fitness center. — THE ORANGE COUNTY REGISTER

Courtesy of Steelwave

Los Angeles’7-acre “The BoxYard” industrial campus has been acquired by Bridge development partners for $68 million. The property purchased from Atlas Capital is amongst former industrial properties that were refurbished into creative offices suited for tech companies. The buyers, however, plan revamp the interior and exterior of the site while maintaining the premise as an industrial property to cater to industrial tenants displaced by the creative offices. — COMMERCIAL OBSERVER

REX/Real Estate Exchange, a Los Angeles based startup has raised a further $45 million in its series C funding. This brings its total funding to $75 million since its launch in 2015. The technology platform seeks to eliminate traditional residential real estate brokers by offering a digital substitute for selling homes known as RexHomes. The platform utilizes machine learning in addition to artificial intelligence to market listed properties to potential buyers. Compared to the standard real estate industry’s brokerage fee of 5% to 6%, REX charges a flat fee of 2%. — BIZ JOURNALS

Written and curated by David Kuria. He is the uber-curious type. A travel and real estate enthusiast. In simplicity, he covers global real estate news from nearly every angle in addition to market movements in finance, the world economy, and other business trends.  Follow him on Twitter.