Looking to reduce rents by 75%, Ring—the HD video doorbell tech company—which was recently purchased by Amazon for $1B, is moving to the Hawthorne!
Ring will relocate from Santa Monica to Hawthorne and join tech giants SpaceX, Tesla, and Amazon.
The new facility will be located at 12515 Cerise Ave, Hawthorne, CA 90250.
With rising rents all around Los Angeles, Ring, a smart video doorbell manufacturer is leaving Santa Monica in search of lower rents.
The move to Hawthorne could reduce Ring’s rent up to 75 percent a year, according to Owen Fileti of LA Realty.
The warehouse on Cerise boasts a massive 62,000-square-foot area that will allow Ring to increase their logistics and distribution teams and give them some room to breathe all while saving a nice chunk of change in the process.
Not a bad deal, especially since Amazon reportedly just paid $1 billion for the promising tech company, which offers security systems and cameras to its 2 million users.
The Cerise warehouse will be developed by Vella Group, a real estate firm with properties all around the country—New York and Los Angeles to name a couple.
Vella reportedly paid $13 million for the property back in March 2018, according to Real Capital Analytics.
M-Rad, an LA-based architecture, and design studio will design the new office space to fit the growing tech startup. It will be complete with distinct co-working spaces, a state-of-the-art engineering department, a grand atrium filled with 30-foot tall trees, and all of the goodies that come in tech startups.
Ring signed a 10-year lease, with an option to renew. This will allow the company to grow, which will inevitably stir up local business in the South Bay city of Hawthorne.
Hawthorne is known as the “city of neighbors” and is a place that many companies discover in their search for sustainable office spaces. Hawthorne’s economy is booming with new construction.
Hawthorne’s housing market could be a South Bay city that you call home, as it’s currently a seller’s market. According to Trulia, Hawthorne shows an 11% year-over-year increase in median sales price, and a -2% drop in rents.
Median sales price is $651,000 and you can get a home for roughly $491 per square foot. No wonder Ring and other tech giants are packing up and calling Hawthorne home.
Renters will pay roughly $3,125 median rents per month.
If you’re curious about who lives in 90250, take a peek. You’ll encounter 32-year old, single-homeowners that are college educated and make roughly $47K a year that work in Sales, management and service industries.
Ninety-three percent of residents will commute by car, and very few will commute by public transportation.
As Hawthorne continues to add these companies to their city, housing is expected to rise over the next year, so there’s no better time than today to consider it your home.
According to a Trulia research report, $1 million may no longer get buyers into the luxury home market – it’s more like $5 million as the new bar for luxury living. In fact, even $5 million homes are becoming less exclusive, as the number of these homes is five times higher than in 2002. Of all the listings, over 7,000 were listed in the top 100 U.S. metros in 2017 – 0.28% were listed at $5 million or more.
Brentwood had only (7) closed sales in 2017 under $1.5 million, and (73) closed sales over $5 million – that’s 29.2% of all of the homes sold in Brentwood last year. The average closed sale price was $4,277,878 in Brentwood last year.
Comparatively, Pacific Palisades had only (1) closed sale under $1.5 million last year, and (52) over $5 million, which represented 20% of the total market sales. The average closed price for Pacific Palisades was $3,989,789 last year.
On the other hand, Santa Monica had (28) sales under $1.5 million, and (32) sales over $5 million, which represented 12.8% of total market sales in 2017.
Interestingly, of the (758) single-family home sales combined in these areas last year, a total of (24) homes sold over $10 million and the share of $5 million plus homes sold was 20.7% of the total market. The highest closed sales price in Brentwood, Pacific Palisades and Santa Monica last year was $23,000,000. (South Bay had (54) total sales above $5 million in 2017, representing 3.59% of total market sales.)
“Millions saw the apple fall, but Newton was the one who asked why.”
— Bernard Baruch
Manhattan Beach home prices hit a new high water mark in July, reaching their highest level in over 4 years. The average sale price for single-family residences for 2017 year-to-date reached $3,008,529, while the median sale price also peaked at $2,471,125. The average sale price is up 14.56% from the same period last year, and up an astounding $1,005,169 when compared to 2013 average sale prices.
And the record highs keep coming – 1000 The Strand sold at the end of May of this year for $21,000,000, and there have been a total of (18) transactions year-to-date with a closed sales price above $5,000,000, versus (1) for the same period last year. In addition, Hermosa Beach just missed a record high sale price with the sale of 1540 The Strand, which closed at $14,150,000, (versus the record price of $15,000,000 in 2015.) See record home price sales for each city below.
South Bay & Palos Verdes
Record Home Prices – Single Family Residences
Another South Bay city has seen its average sale price hit a new high – North Redondo Beach. Year-to-date average sale prices hit a new peak of $1,002,651; the first time prices have topped the seven-figure number. That number compares to an average sale price of $768,023 in 2013, which means pricing has increased 30.5% in North Redondo Beach in the last 4.5 years!
We’re reaching an interesting point in time in terms of the typical real estate cycle, which seems to normalize / adjust every 7-9 years. With record employment, a continued low interest rate environment, stock market highs, renewed consumer confidence, and a healthier mortgage balance sheet (more equity, less delinquencies,) it appears the good times will keep coming.
I’m not one to speculate on where prices go from here, but like everyone interested in the housing market, it’s sure going to be interesting in the next 12 months.
WeHo welcomes a quintet of new luxury townhomes from FMB Development to the neighborhood
Written by Alisha Henson
Located at 1159 N Formosa Ave, just north of Santa Monica Blvd, five new modern luxury townhomes are being brought to West Hollywood by FMB Development. The three-story townhomes will feature indoor/outdoor living spaces that seamlessly blend into the development’s signature modern design and aesthetic of the neighborhood. Built with high-quality finishes and materials, each unit will also include a private front and back yard, and a subterranean garage. Not to mention the impeccable views from the rooftop deck, which include Downtown Los Angeles, Griffith Observatory, and the Hollywood sign.
“These luxury townhomes will integrate seamlessly into the surrounding neighborhood, increase area property values, and improve quality of life for local residents. We worked closely with the community in designing this property to ensure that it would contribute to the vibrant neighborhood and address local priorities, like increasing walkability and parking availability.
FMB Development is proud to have created a project that thoughtfully incorporates the latest in contemporary design, unique artistic elements, and the highest quality materials and finishes,” says IIan Kenig, CEO of FMB Development.
5757 Wilshire Blvd, Ste. 448
Los Angeles, CA 90036
Written by Wendy Bowman
This custom Mediterranean-style Manhattan Beach home at 1467 3rd St. definitely is attractive to pro athletes—in particular, for current owner and former left wing for the Los Angeles Kings, Alexander Frolov, and its original o
wner, former Lakers forward, Slava Medvedenko.
“The most appealing feature of the house is the high ceilings; the house feels really big, which is a desirable factor for tall athletes,”
says Michael Grady of The Agency, who is listing the property for $2.895 million.
“There’s also the corner lot aspect. You have a little more privacy on the corner and aren’t sandwiched in, and the backyard layout has a private oasis feel to it with a magnificent pool, spa and built-in barbecue.”
Yet other stand-out features of the two-level, 7,549-square-foot abode: five bedrooms (most notably, an elegant master suite boasting a duo of balconies and a fireplace); a living room with a wet bar and fireplace; formal dining room; and casual family room overlooking the lushly landscaped backyard that flows to a gourmet kitchen sporting a large center island, double-oven and breakfast area.
Written by Wendy Bowman
The gated and private Colonial Revival estate that Green Acres actress Eva Gabor (as well as stars from Audrey Hepburn to Mia Farrow) once called home has hit the market for $13.995 million, listed by Jade Mills of Coldwell Banker Global Luxury.
Situated at 100 Delfern Drive—in the exclusive Los Angeles enclave of Holmby Hills—the traditional Paul Williams-designed residence features 6,797 square feet of living space in the main home, including a grand foyer boasting an elegant designer chandelier and winding staircase; six bedrooms; a living room with fireplace and built-in library shelves; family room with fireplace; formal dining room; and kitchen with a light-filled breakfast area. Meanwhile, the 1.1-acre lot is highlighted by a guest house; staff apartment; inviting pool; pool house with kitchen and sauna; tennis court; and landscaped gardens. A sizeable brick-lined motor court tops off this white brick home’s special allure.
Explore L.A. this summer at fun summertime events from the Westside to the South Bay
Written by Wendy Bowman
El Segundo Art Walk
More than 40 artists in 35 studio venues throughout downtown El Segundo and the up-and-coming Smoky Hollow neighborhood (between Sepulveda and historic downtown El Segundo) are set to participate in the self-guided third Thursday night El Segundo Art Walk, with upcoming dates on July 20 and Aug. 17 from 5-9 p.m. Expect fine art, live music, great food and artist studio tours at the event, now in its third year. Start at July’s event headquarters at 212 Eucalyptus Drive for a map and drink. Look for work by artists including Chance Cooper, Sabrina Armitage, Carrie Dietz Brown, Paul Roustan, Scott McFarlane, Dane Capo and Paula Langstein at venues ranging from Unita to South Bay Customs and many more. ElSegundoArtWalk.com
Shade Summer Series
Both outposts of the Shade Hotel in Manhattan Beach and Redondo Beach are inviting everyone to party at their rooftop pools. Visit the Manhattan Beach site’s Skydeck Aug. 13 and Sept. 10, and the new Redondo Beach property’s Aquadeck each
Sunday throughout the summer. Both parties last from 1-6 p.m. and include handcrafted cocktails, food and drink specials and DJs. Open to the public (ages 21 and older), with a $20 admission fee. ShadeHotel.com
Beverly Hills Open Later Days (B.O.L.D.)
Planning on venturing out in the evening? Head to Beverly Hills for extended shopping hours and more, beginning Aug. 3. As part of Beverly Hills Open Later Days (B.O.L.D.)—a new initiative led by Mayor Lili Bosse, Beverly Hills Conference & Visitors Bureau and Rodeo Drive Committee—locals and visitors alike can visit select retailers Thursday-Saturday until 8 p.m. and enjoy live entertainment,
style sessions with fashion influencers, in-store tastemaker events, branded food carts and café seating along Rodeo Drive’s 200 block. Must-attend happenings include the free Concerts on Canon (in the Beverly Gardens between Montage Beverly Hills and Bouchon Bistro), with entertainers performing Broadway tunes, Brazilian jazz and other music every Thursday through Aug. 31 from 6-8 p.m., as well as aboveSIXTY movie nights featuring classics such as Dirty Dancing and ET and new favorites like La La Land on the SIXTY Beverly Hills Hotel rooftop each Wednesday, starting at 7 p.m., until September. LoveBeverlyHills.com
Concert on the Bluffs
The city of Malibu’s second-annual Concert on the Bluffs, in partnership with Malibu Village, takes place Aug. 20 at 5 p.m. at Malibu Bluffs Park. Look for performances by world-class musicians from the Malibu Coast Chamber Orchestra, Los Angeles Philharmonic and Hollywood Bowl Orchestra, along with guest dancers from the New York City Ballet—all held against a backdrop featuring sweeping views of the mountains and coastline. BrownPaperTickets.com
Highlights from the National Association of Realtors Sustainable Homeownership conference held recently at University of California, Berkeley, show that despite the addition of roughly 11.8 million households between 2006 and 2016, there are approximately 1 million fewer homeowners today than a decade ago. “The decline and stagnation in the homeownership rate is a trend that’s pointing in the wrong direction, and must be reversed given the many benefits of homeownership to individuals, communities, and the nation’s economy,” stated William E. Brown, president of NAR.
According to the National Association of Home Builders (NAHB,) tear-downs accounted for 10% of 2016 housing starts with an estimated 79,300 single-family homes removed last year. Tear-downs accounted for 10.2% of all single-family starts – that number is up sharply from 2015 when there were an estimated 55,000 tear-downs, a 7.7% share. The West led with 33,400 total tear-downs out of the U.S. total of 79,300. CoreLogic reported that U.S. homeowners with mortgages (which is roughly 63% of all homeowners) have seen their equity increase by a total of $766.4 billion dollars since the 1st quarter of 2016 – an increase of 11.2%. Today, nearly 9 million borrowers have regained equity since the height of the housing crisis in 2011. CoreLogic Chief Economist stated, “One million borrowers achieved positive equity over the last year, which means mortgage risk continues to steadily decline as a result of increasing home prices.”
In other housing news, the U.S. Census Bureau and the Department of Housing and Urban Development said permits for residential housing units in May were issued at a seasonal adjusted rate of 1,168,000, which was down 4.9% from the April rate of 1,229,000, and well below expectations of between 1.240 – 1.260 million. The negative report yielded the following statement from Lawrence Yun, the Chief Economist at the National Association of Realtors, “Housing shortages look to intensify, and may well turn into a housing emergency if the discrepancy between housing demand and housing supply widens further. The falling housing starts and housing permits in May are befuddling given the lack of homes for sale and the quick pace of selling newly constructed homes. Meanwhile, job creations of a consistent 2 million a year will push up housing demand further. One thing that’s moving up is the housing costs for consumers: higher home prices and higher rents.”
Finally, the Federal Reserve just reported that Americans’ net worth climbed to $94.8 trillion in the first three months of 2017, an increase of 2.5% from the fourth quarter of 2016. For perspective, that’s up nearly $39 trillion from where wealth sat during the depths of the Great Recession in 2008. Collectively, Americans’ net worth in Q1 2017 is up more than 68% from that low, as consumers’ stock portfolio values gained $1.3 trillion and real estate values climbed $499 billion in the first three months of this year alone.
Written by Alisha Henson
Bowing at The Bloc, the hub of DTLA’s burgeoning retail and entertainment center, Alamo Drafthouse will bring a unique cinematic experience to in-theater dining. Acquired by The Ratkovich Company with partners National Real Estate Advisors and Blue Vista Capital in 2013, The Bloc is in the final stages of its $180 million renovation. “Alamo Drafthouse is the perfect addition to The Bloc and Downtown LA’s rapidly growing food and entertainment scene. It brings a fresh and unique take on the traditional movie-watching experience, and will be a great complement to the other retailers at The Bloc. The Bloc is a gathering place for all Angelenos, making it the place to be in Downtown LA,” says Wayne Ratkovich, founder and president of The Ratkovich Company.
According to its recently released Home Price Index (HPI,) CoreLogic reported that home prices are up both year over year and month over month. Nationwide, home prices increased year over year by 6.9% in April 2017 compared to April 2016 and increase month over month by 1.6% in April 2017 compared with March 2017. The CoreLogic HPI Forecast indicates that home prices will increase by 5.1% on a year over year basis from April 2017 to April 2018.
CoreLogic also reported that U.S. homeowners with mortgages (which is roughly 63% of all homeowners) have seen their equity increase by a total of $766.4 billion dollars since the 1st quarter of 2016 – an increase of 11.2%. Today, nearly 9 million borrowers have regained equity since the height of the housing crisis in 2011.
On the other hand, the total number of residential mortgages with negative equity decreased 3% from the 4th quarter of 2016 – to 3.1 million homes or 6.1% of all mortgaged properties. CoreLogic Chief Economist stated, “One million borrowers achieved positive equity over the last year, which means mortgage risk continues to steadily decline as a result of increasing home prices.”
And there’s more news on mortgages out today – Freddie Mac just released it Primary Mortgage Market Survey, showing the 30-year fixed mortgage dropping for the 4th consecutive week and hitting its lowest level in nearly seven months. 30-year fixed mortgages averaged 3.89% with an average .5-point for the week ending June 8, 2017, down from last week when it averaged 3.94%. For reference, a year ago at this time the 30-year fixed rate mortgage averaged 3.6%.
With the market so hot, one has to wonder what’s happening with home flipping – the practice of buying and then reselling the same property within a 12-month period. Well, ATTOM Data Solutions just released its Q1 2017 US Home Flipping Report, which showed that home flipping fell to the lowest level in two years during the 1st quarter of 2017. Interesting, at the same time, the share of those flips using mortgage financing rose to a 9-year high. The company reported that there were 43,615 single family homes and condos flipped during the 3-month period, down 8% from the previous quarter and 6% from a year ago. Flipping accounted for 6.7% of all single-family home and condo sales during the quarter, an increase from 5.8% in the fourth quarter, but unchanged from a year earlier.
The National Association of Realtors (NAR) just released it 2017 Home Buyer and Seller Generational Trends study, which found that millennials were the largest group of home buyers (34%) for the fourth consecutive year. By comparison, baby boomers were 30% of buyers.
“Millennials have been fairly slow to get into the market, but we are seeing an uptick in millennial buyers this year – which is a good sign, because as home values rise, we want a wider number of people to participate in this housing recovery,” said Lawrence Yun, chief economist at NAR. “There’s a pent-up demand and as the economy continues to improve, we expect to see more people in their early thirties, adults who are still living with their parents – clearly not their idea of the American dream – to begin to look for their own housing units.”
In other housing news, economists at Freddie Mac see the U.S. housing market “on track to eclipse last year as the best in over a decade.” The company’s May Outlook gives credits to the housing market’s strong start to 2017 in part to the surprising downward movement of interest rates since March. After rising to 4.3% in March, mortgage rates have dipped back down near the 4.0% range and have been holding pretty steady. The general sentiment is that the Fed will increase rates a few times before the end of 2017. All told, Freddie Mac thinks 2017 is shaping up to be the best year for housing in over a decade.
Based on Fannie Mae’s monthly National Housing Survey, the net share of Americans who said that now is a good time buy a home reached a record low of 27%, (a decrease of 8%,) while the net share who stated that it is a good time to sell a home reached a record high of 32%, a gain of 6% in May 2017.
Fannie Mae said it was only the 2nd time in the survey’s history that the net share of those saying it’s a good time sell surpassed the net share of those saying it’s a good time to buy. In fact, the “sell” component is 19 point higher that the same time in 2016. All of this makes perfect sense since the market has been on fire and continues to stay hot.
Look for more market muse episodes soon.
In this Episode, Aaron Klapper looks at the 2014 Year to Date Sales vs Median Sales Price of the South Bay Los Angeles Beach Cities: Manhattan Beach, Hermosa Beach, Redondo Beach, Palos Verdes Estates, Rolling Hills Estates, Rolling Hills and Rancho Palos Verdes.
http://klappergroup.com/ The Klapper Group Shorewood Realtors (310) 546-9800 950 Artesia Boulevard Hermosa Beach, CA 90254