LOS ANGELES—As the South Park neighborhood is runs out of developable land, the development renaissance is moving on to the Arts District. In the outlying Downtown Los Angeles neighborhood, there are several projects under construction and many that have delivered to phenomenal success. To find out more about the emerging development trends in the market, we sat down with CBRE’s John Zanetos for an exclusive interview.
GlobeSt.com: Has the development boom in Downtown Los Angeles hit the Arts District?
John Zanetos: Yes, there are several projects currently under development and in various planning stages all throughout the Arts District. Brookfield is currently under development with a major multi-family project in the northern part of the area along 3rd street and Lowe has just completed The Geary in the same area. Suncal is working through entitlements for a very impressive development called 6am.
GlobeSt.com: How is development in this micro market of Downtown different than in other parts of Downtown, and is it more or less difficult/expensive?
Zanetos: The Arts District is a very distinct neighborhood of Downtown Los Angeles. The product type that exists in the area is primarily historic industrial buildings that have been adaptively converted to either office or multi-family, giving the area a much more creative feel. Additionally, this gives the neighborhood a less dense environment than you would find in the core of DTLA or South Park. The Arts District has its own neighborhood council that is working to preserve the unique look and feel of the neighborhood.
GlobeSt.com: What type of development is missing in the market, or do you think that there is strong activity in all asset classes?
Zanetos: Boutique hotels and daily need retailers will help bridge the gap. If you are visiting from out of town and want to experience the Arts District you have to Uber/Lyft to the neighborhood. A hotel will help bring in more visitors from around the world, especially those that are flying in to buy expensive art at one of the many galleries in the area.
GlobeSt.com: Tell me about some of the most highly anticipated projects set to break ground in the second half of the year.
Zanetos: The renovation of 405 Mateo by Hudson Properties will be an amazing project to watch unfold. This is another great example of adaptive reuse taking place in downtown LA. Hudson Properties will be converting the 100 year-old Maxwell House Coffee Roasting building and turning it into a boutique office building with ground floor retail.
This article originally appeared on GlobeSt.com