ACE HOTEL SHUTS DOWN 😱 | HOME REPAIR COSTS SOAR

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NOTABLE SALE
$3,000,000 DEAL BY SUPERSTAR ROCKER

MARKET: San Diego
ASSET TYPE: Multifamily
SALE PRICE: $6,050,000

Marcus & Millichap sold 4043 First Ave, A 15-unit apartment building in San Diego’s Hillcrest neighborhood.

NEWS
ACE HOTEL SHUTS DOWN

ARTICLE TLDR

• The Ace Hotel DTLA Will Cease Operations In Early 2024

The Ace Hotel DTLA, a trendy boutique hotel and theater in downtown Los Angeles, will cease its operations on Jan. 31, 2024. The owners of the building, a subsidiary of South Korea-based Aju Group, have decided to transform the property into a limited-service, rooms-only operation, managed by a tech platform. The Ace Hotel DTLA opened in 2014, when downtown LA was experiencing a resurgence, and paid one of the highest prices per room in the area. The hotel market in downtown LA has shifted since then, with new competitors, lower occupancy rates, and the impact of the pandemic. The Ace Hotel DTLA's parent company, Portland-based Ace Group International, was acquired by Sortis Holdings for $85M in January 2023.

NEWS
HOME REPAIR COSTS SOAR IN CALIFORNIA

• Home repair costs in California have risen by 67% in the past decade, driven by inflation, supply chain disruptions, and pandemic-induced demand.

If you are thinking of fixing or remodeling your home in California, be prepared to pay a lot more than you did a decade ago. According to a report by Verisk, a data analytics company, the cost of home repairs in the Golden State has increased by 67% in the past 10 years, twice as much as overall inflation. The report tracks the cost of 31 groups of items used in home repairs, such as appliances, doors, plumbing, and windows, plus their installation. The report attributes the surge in repair costs to the COVID-19 pandemic, which disrupted supply chains and increased demand for home improvement. Greg Pyne, a vice president at Verisk, said that repair costs jumped after the pandemic and have not slowed down much since then. He also said that he hopes that inflation and supply chain disruptions will decline and repair costs will follow suit. However, for now, homeowners in California will have to face the reality of higher repair costs and budget accordingly.