Los Angeles Sweet Digs

July 28, 2008

No Takers at Larchmont Lofts

Great post by our friends at Curbed LA last week about the new condo development at Melrose Ave. and Larchmont, Larchmont Lofts.  These are luxury units originally priced from $750,000 to $1.25 million.  Guess how many got sold?  Zip.  None.  Nada.

This isn’t the first Hollywood-area condo development that’s run into trouble, and it probably won’t be the last.  Many of them hit the market right before or just after it peaked.  They may have seemed like a good idea at the time, when prices were rising every month, but now they seem drastically overpriced, especially without the exotic mortgage to get you in the door.

So the developers, in an effort to get some cash flow, are offering to rent the units for $3,200 to $5,000 per month. In other words, a mortgage payment without the down payment. 

I’m not confident about this plan.  Not only is the rent very high, but the condos’ location on busy Melrose, a longish walk from Larchmont Village, isn’t all that desirable — at least not in that price range.  Check out the comments on the Curbed LA post on the subject; they’re pretty entertaining.larchmont No Takers at Larchmont Lofts

Meanwhile, some single-family homes in the area seem to be selling some — and fetching decent prices.

600 N. Lucerne Blvd.
Sold for $694,787 on May 29, 2008
2BR/1B/1,518 square feet
Notes:  This weird price means it’s most likely an REO. 

646 N. Arden Blvd.
Sold for $730,000 on March 3, 2008
2BR/1B/1,578 square feet

584 N. Cahuenga Blvd.
Sold for $975,000 on 6/27/08
3BR/2B/1,647 square feet

Posted by Cindy Allen on July 28, 2008 8:11 AM | del.icio.us | Digg

  • The condo market is tough all around Los Angeles, not just in Hollywood. These are beautiful lofts in a great neighborhood
  • I don't get "Sally loff" this joint is not a real loser. There is a beautiful design at a tremendous location. I would love to live in one of these units. Larchmont has always been one of my favorite areas in L.A. I would think that employees at Paramount would find these very attractive.
  • The condo market is tough all around Los Angeles, not just in Hollywood. These are beautiful lofts in a great neighborhood. Thsi is purely a situation where teh market dropped affecting every developer, regardless of location
  • sally loff
    I can see it now.. the hot bodies barbecuing on the balconies with the laundry hanging in the breeze overlooking Melrose ave with a donut hole and vons market as your view.. get real this joint is a real loser
  • Interesting perspective, TK. Do you think that applies to downtown as well, where practically everything is a loft?
  • TK
    I think the era of the loft may be on the decline. People want to feel they have a more substantial real estate investment during the economic downturn. It's like comfort food during tough times. Many of the loft developments have an air of sticking it to the buyer. Up charges on items that may have been passable a few years ago, just feel like a scam in today's market. A fancy name doesn't change the classification of the property. In the end, lofts are condos and they fall at the softest end of the market.
  • J. P.
    Interesting - I actually checked out these lofts because a friend of mine was interested in buying one. They were very modern and cool looking - but not my style at all. My friend was unable to get a loan for the loft (fortunately, it appears) because the mortgage company was requiring that 50% of the lofts be sold before giving him a loan, for which he needed a 25% downpayment.
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