LOS ANGELES—The redevelopment in Century City—specifically the $800 million renovation of the Century City Mall and the addition of condo towers at the Century Plaza Hotel—have revitalized the current condo market, and attracted a new brand of buyers. Jill Epstein, a broker at Nourmand & Associates, has sold a handful of older condo units in recent months, and has noticed an emerging trend: buyers are younger and competitive to get into these heavily discounted units to take advantage of the changes in the market. To find out more about the condo market in Century City and how it is evolving, we sat down with Epstein for an exclusive interview.
GlobeSt.com: Give me a snap shot of the redevelopment going on in Century City.
Jill Epstein: A few things are happening. The mall is being completely redone and expanded, and Eataly is going in, which is going to be a huge draw. The mall is also adding a Nordstrom and renovating the Bloomingdales. It is really going to become a go-to place in the market. In top of that, the Century Plaza Hotel is also being renovated, and once complete, will have condominiums on the top floors and two high-rise condominium towers behind the hotel. There is a lot of money going into Century City and a lot of new development. There is a whole new revitalization happening.
GlobeSt.com: How is this redevelopment affecting the current housing stock?
Epstein: The condos that are currently in Century City are all in four gated communities: Le Parc, Century Hill, Park Place and Century Woods. Three have gone under the radar in the last few years. They were originally developed by Ray Watts in the 1980s. Century Woods has already come into its own because it was built on a huge piece of land and few years ago, a developer built new villas that have traded in the high $5 millions. The other three projects are sleepy projects, and I think that they are going to take off, especially given what you get for the money and the revitalization in the area. A younger demographic is buying these properties and redoing them, and they are finding that they are getting so much more for their money. People don't realize that in the older projects, there is a lot of value.
GlobeSt.com: You are seeing a younger demographic. How is this different from the typical buyer pool for these properties?
Epstein: When the original buyers purchased the projects in 1980 and 1981, it was people downsizing from Bel Air homes and Beverly Hills homes. Now, those buyers have moved on for one reason or another, and it is bringing a new crop of properties onto the market. I am finding that the buyers for these are younger, and I absolutely think that is because of the redevelopment projects in the market. This is also becoming an option for young families now, although I haven't sold these units to a lot of young families. I am still getting single professionals as well as couples that are downsizing. That is a huge age range.
GlobeSt.com: Have any buyers been detoured by the construction, or do they mostly see it as a benefit?
Epstein: They see it all as a benefit. The walkability is one of the greatest features of buying where these buyers are. Homeowners can walk to Beverly Hills or to the mall. The Purple Line is also coming to Century City, and that will also be available to the homeowners.
GlobeSt.com: What is the price difference for new construction versus these older units?
Epstein: In some cases, because some of the units need to be updated, buyers are paying as little as $1.3 million for 2,300 square feet. You can't touch anything at Century Plaza, for example, for less than $3.5 million. The older units are also competitive with the rental projects. At Ten Thousand Santa Monica, the rentals at $10,000 a month, on up. There are a lot of benefits to purchasing old properties.
GlobeSt.com: Are you starting to see prices increase as a result of this new demand?
Epstein: I am starting to see prices increase now. We haven't seen a lot of it because renovated units have not come on the market yet. I am not getting multiple offers yet, but they are going quickly. Last month, I had two listings in these buildings, and we sell them in less than a week. One of them sold for a higher price than the asking price. The value in the market is definitely being realized.
LOS ANGELES—The redevelopment in Century City—specifically the $800 million renovation of the Century City Mall and the addition of condo towers at the Century Plaza Hotel—have revitalized the current condo market, and attracted a new brand of buyers. Jill Epstein, a broker at Nourmand & Associates, has sold a handful of older condo units in recent months, and has noticed an emerging trend: buyers are younger and competitive to get into these heavily discounted units to take advantage of the changes in the market. To find out more about the condo market in Century City and how it is evolving, we sat down with Epstein for an exclusive interview.
GlobeSt.com: Give me a snap shot of the redevelopment going on in Century City.
Jill Epstein: A few things are happening. The mall is being completely redone and expanded, and Eataly is going in, which is going to be a huge draw. The mall is also adding a Nordstrom and renovating the Bloomingdales. It is really going to become a go-to place in the market. In top of that, the Century Plaza Hotel is also being renovated, and once complete, will have condominiums on the top floors and two high-rise condominium towers behind the hotel. There is a lot of money going into Century City and a lot of new development. There is a whole new revitalization happening.
GlobeSt.com: How is this redevelopment affecting the current housing stock?
Epstein: The condos that are currently in Century City are all in four gated communities: Le Parc, Century Hill, Park Place and Century Woods. Three have gone under the radar in the last few years. They were originally developed by Ray Watts in the 1980s. Century Woods has already come into its own because it was built on a huge piece of land and few years ago, a developer built new villas that have traded in the high $5 millions. The other three projects are sleepy projects, and I think that they are going to take off, especially given what you get for the money and the revitalization in the area. A younger demographic is buying these properties and redoing them, and they are finding that they are getting so much more for their money. People don't realize that in the older projects, there is a lot of value.
GlobeSt.com: You are seeing a younger demographic. How is this different from the typical buyer pool for these properties?
Epstein: When the original buyers purchased the projects in 1980 and 1981, it was people downsizing from Bel Air homes and Beverly Hills homes. Now, those buyers have moved on for one reason or another, and it is bringing a new crop of properties onto the market. I am finding that the buyers for these are younger, and I absolutely think that is because of the redevelopment projects in the market. This is also becoming an option for young families now, although I haven't sold these units to a lot of young families. I am still getting single professionals as well as couples that are downsizing. That is a huge age range.
GlobeSt.com: Have any buyers been detoured by the construction, or do they mostly see it as a benefit?
Epstein: They see it all as a benefit. The walkability is one of the greatest features of buying where these buyers are. Homeowners can walk to Beverly Hills or to the mall. The Purple Line is also coming to Century City, and that will also be available to the homeowners.
GlobeSt.com: What is the price difference for new construction versus these older units?
Epstein: In some cases, because some of the units need to be updated, buyers are paying as little as $1.3 million for 2,300 square feet. You can't touch anything at Century Plaza, for example, for less than $3.5 million. The older units are also competitive with the rental projects. At Ten Thousand Santa Monica, the rentals at $10,000 a month, on up. There are a lot of benefits to purchasing old properties.
GlobeSt.com: Are you starting to see prices increase as a result of this new demand?
Epstein: I am starting to see prices increase now. We haven't seen a lot of it because renovated units have not come on the market yet. I am not getting multiple offers yet, but they are going quickly. Last month, I had two listings in these buildings, and we sell them in less than a week. One of them sold for a higher price than the asking price. The value in the market is definitely being realized.
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