2017 Is Getting a Phenomenal Start

Los Angeles is off to a great start in 2017.

LOS ANGELES—If the first two weeks of the year are any indication, 2017 is going to be a great year. Already we have reported several major sales: CoreTrust’s $336 million acquisition of the CitiGroup Center in Downtown Los Angeles; Redwood Urban and Beverly Pacific’s $132 million purchase of the Jefferson in Hollywood; and now Broadreach Capital Partners’ sale of the Sunset in West Hollywood. The investor has sold the 179,000-square-foot mixed-use development for $210 million, adding to a pile of headline-worthy sales to stack up in the first few weeks of the year.

The three transactions, aside from scale, have little income. They are in different asset classes and in different geographic locations in the city. However, they do represent the fervent interest investors have in Los Angeles real estate, and much of that has to do with job growth. Beacon Economics, in fact, published a report at the end of 2016 that said job growth in Los Angeles was keeping L.A. from overheating. The report came with a bright outlook for the city in the year ahead.