California: Conversions Underway in LA Loft Boom

By: Cara Mia DiMassa: REALTOR® Magazine Online
The conversion of 50 historic buildings in downtown Los Angeles into residential units is nearing an end, with all but six completed or nearly finished.

The 75-year-old Eastern Columbia Building and the 80-year-old Subway Terminal Building will soon be opened, featuring 147 and 264 units, respectively. City officials and developers are now looking at other structures to continue revitalization of the urban core.

Among those being considered are office towers built over the past four decades, parking lots, and pre-war buildings just outside of the downtown historic area. Although waiting lists for many of the units indicate strong demand, the city still must overcome several challenges.

In addition to concerns about drug arrests and other criminal activity, the city must contend with a lack of shopping centers. Moreover, the converted units are selling for $350,000 to more than $1 million, pricing many buyers out of the market and at the same time restricting the options available to renters.