I had previewed the Lofts at Hollywood and Vine about a year ago for a friend who was looking to live the Hollywood loft experience for a year. Although his heart was set on the uber lux Broadway Lofts across the street (and where he ultimately ended up renting), the prices were a little less extreme at the H&V Lofts. There were definitely some cool spaces, but the prices (even for lease) were a little high and the amenities are practically nil, with the exception of 24 hour security/door service.
Fast forwarding to today (or Monday to be exact), I previewed the lofts again with a friend who was considering purchasing in the building and wanted my feedback. Let's just say that times have definitely changed when it comes to this building's pricing strategy. A unit on the 5th floor sold for $776,000 (about $623.00/sq ft) in October 2007 . A similar unit 2 floors down, but with the same floor plan and in the same stack (meaning the units are above each other and face the same view) is now $549,000 which breaks down to $465.000 per square feet - about a 33% decrease.
With today's adjusted pricing, you can purchase a small 1 bedroom loft for $359,000 or a well proportioned 2 bedroom for $549,000. The prime Hollywood location, swankness of the building, and the fact that you are getting a brand new unit for the price should instantly make this a Hot Prop! The problem you ask? The HOA fees are outrageous and many of the units do not come with parking! Yes, you heard correctly - there are units being sold at great deals that do not include a spot. They value a parking spot at about $50,000. There is an overflow lot across the street from Avalon that residents can use, but only until their agreement with H&V Lofts expires 3 years later. Getting back to the HOA fees, you are looking at $700.00 a month plus an additional $250ish if your unit does in fact have a parking space. There are no building amenities for the price: no pool, fitness, etc.
Why I am even mentioning this to any of you, you're wondering? They are only about 40% sold and are desperate to do deals. From what the building rep was telling me, the developer is willing to pay at least half of the HOA'sfor potentially up to five years and there still are parking spots available to be negotiated into the sales price of the unit. Most loft dwellers I know live the experience for a few years and then sell. With the opening of the new W Residences this fall, this can only help neighborhood property value over the next few years. I would recommend this option to someone who was planning to stay for up to five years, negotiate in a parking spot/reduced HOA's into the offer, and then sell before themonthly dues readjust. Although my crystal ball is in the shop, I think this could be a solid investment strategy.
The photos included are of the awesome 2 story bachelor pad for $1,100,000. It's really a cool unit!!!
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