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NOTABLE SALE
$18 MILLION DOLLAR DEAL IN BELMONT

MARKET: Belmont
ASSET TYPE: Senior Housing
SALE PRICE: $18,000,000
BUYER: The Blvd Group

The Blvd Group purchased this 164-unit senior housing community in Belmont. They secured a 10.8 million dollar loan from fannie mae.

NEWS
MORTGAGE PURCHASE APPS FALL..AGAIN

LA UPDATE
LA REAL ESTATE MARKET UPDATE: OCTOBER 2023

ARTICLE TLDR

• The LA real estate market declined in listings and signed contracts in October 2023, except for two segments of the single-family home market and the high-end condo market.

• The higher-end market is less affected by mortgage rates and more motivated by tax reasons, according to the Elliman Report by Douglas Elliman.

• The market is still facing challenges, but some segments are showing resilience and optimism.

LA Real Estate Market Update: October 2023

The Los Angeles real estate market has been facing a slowdown for the past year, as the pandemic, economic uncertainty, and rising mortgage rates have dampened the demand for housing. However, some segments of the market have shown signs of recovery in October, according to the latest Elliman Report by Douglas Elliman.

The report, which tracks the trends of the LA market based on listings and signed contracts, reveals that the overall market continued to decline in both metrics, compared to the previous year and month. The number of listings dropped by 12.4% year-over-year and 5.9% month-over-month, while the number of signed contracts decreased by 9.8% year-over-year and 7.2% month-over-month.

However, two segments of the single-family home market experienced gains for the first time in a year: homes priced between $2 million and $4.99 million, and homes priced between $1 million and $1.99 million. The former segment saw a 10.9% increase in listings and a 15.4% increase in signed contracts year-over-year, while the latter segment saw a 6.4% increase in listings and a 9.2% increase in signed contracts year-over-year.

The author of the report, Jonathan Miller, suggests that the higher-end market is less affected by mortgage rates, which have risen from 2.81% in October 2022 to 3.21% in October 2023, according to Freddie Mac. He also speculates that some sellers are more motivated to close deals before the end of the year for tax reasons, as the Biden administration has proposed to raise the capital gains tax rate for high-income earners.

The report also mentions that the high-end condo market saw an increase in signed contracts for condos priced higher than $2 million, which rose by 16.7% year-over-year. However, the overall condo market remained sluggish, with a 14.9% drop in listings and a 12.5% drop in signed contracts year-over-year.

The LA real estate market is still facing challenges, but some segments are showing resilience and optimism. Whether this trend will continue or reverse in the coming months remains to be seen.

NEWS
3rd Street Promenade Is Making A Come Back

Santa Monica Ushers in Another New Era

Santa Monica, the iconic beach city in Southern California, is undergoing a major transformation in its city government. The city has a new mayor and a new city manager, both of whom are women and the first of their kind in the city’s history.

Gleam Davis, who has been on the City Council since 2009, is the new mayor of Santa Monica. She is the first woman to hold the position since 1994 and the first mayor to be elected by her peers on the council, rather than by the voters directly. This is due to a new system approved by a ballot measure in 2020, which changed the way the mayor and the mayor pro tem are selected.

Lane Dilg, who has been the interim city manager since April 2020, is the new city manager of Santa Monica. She is the first woman to lead the city’s administration and has been praised for her handling of the COVID-19 pandemic and the civil unrest that followed the killing of George Floyd. She was appointed by the City Council in May 2020 after a nationwide search.

These changes reflect Santa Monica’s long history of progressive politics and social movements. The city was founded as a resort town in the late 19th century and became a popular destination for tourists and celebrities. In the 1970s and 1980s, the city emerged as a bastion of rent control and environmentalism, attracting activists and artists. Today, the city faces challenges of homelessness, affordability, and racial justice, as well as opportunities to recover from the impacts of the pandemic and adapt to the changing needs and expectations of its residents and visitors.

The city’s leadership has also faced controversies and criticisms over the years. In 2004, four council members were targeted by a recall campaign led by a group of residents who opposed their policies on development, traffic, and taxes. In 2018, the city was sued by a Latino civil rights group over its at-large election system, which allegedly diluted the representation of minorities. The city agreed to switch to district-based elections in 2020. In May 2020, the city’s police response to the looting and vandalism that occurred during a peaceful protest against police brutality sparked backlash from some community members who accused the police of being unprepared and ineffective.

Santa Monica is entering a new era of uncertainty and opportunity, as it welcomes its new mayor and city manager. The city hopes to overcome its challenges and continue its legacy of being a progressive and innovative city that values diversity, sustainability, and community.

PASADENA
Pasadena Now Requires Landlords To Pony Up For 'No Fault' Evictions

ARTICLE TLDR

• Pasadena hates landlords

Pasadena Tenants Get New Protection From No-Fault Evictions

If you are a renter in Pasadena, you may have some good news. The city has recently approved new relocation fees for tenants who face no-fault evictions. These are evictions that happen when landlords take back their rental properties for reasons like major repairs, or owner and family member occupancy.

The new relocation fees range from around $6,000 to just over $37,500, depending on factors like the length of tenancy, the number of bedrooms, and the tenant’s age and health. The fees also cover tenants who are seeing excessive rent increases. The Pasadena Rental Housing Board approved the fees in late September by an 8 to 2 vote.

The fees are modeled after those in the city and county of Los Angeles, and reflect the high cost of renting in Pasadena. Pasadena has a median rent of $2,300, which is higher than the national average of $1,700. The city also has a low vacancy rate of 3.4%, which means there are not many available units for renters to choose from.

The new relocation fees are meant to help tenants who are displaced by no-fault evictions find new housing and cover their moving expenses. They are also meant to discourage landlords from evicting tenants without a valid reason or raising rents beyond what tenants can afford.

However, not everyone is happy with the new relocation fees. Landlord groups are opposed to the fees, saying they are too high and will discourage property owners from making necessary repairs. They argue that the fees will reduce the supply of rental housing and increase the cost of renting in Pasadena.

The new relocation fees are part of a larger effort by the city to protect renters’ rights and prevent homelessness. The city has also enacted a temporary eviction moratorium during the COVID-19 pandemic and a permanent rent stabilization ordinance that limits annual rent increases to 4.5%.

What do you think of the new relocation fees for tenants in Pasadena? Do you think they will help or hurt renters and landlords? Share your thoughts in the comments below.