Architects, designers, builders, the mayor of Los Angeles, and their fans have long known this fact: Downtown Los Angeles has finally caught on. Shoppers come to the same conclusion: Downtown Los Angeles is the most underrated major city on planet Earth.
Well, actually downtown Los Angeles has done great since 1995, during which time the City of Los Angeles Community Redevelopment Agency committed to leveling homes and clearing the ground for future commercial skyscraper development. This period saw the cleanup and zoning of the entire neighborhood, more Broadway department stores closed, and many of the remaining downtown Los Angeles financial corporations moving into vacant Class A office space on Bunkers Hill.
In mid-2013, the center stood out as “a neighborhood with an increasingly fashionable and affluent residential population.” It began to attract foreign millionaires as well, mainly from China, who rushed to invest in it, sometimes with a down payment. Downtown Los Angeles is the central business district of Los Angeles, as well as a diverse residential neighborhood of about 50,000 people at the time of writing. A 2013 study found that the district is home to more than 500,000 jobs. Wikipedia mentions that the district deteriorated economically and suffered a recession for decades until the early 2000s. Now, construction is fast. Old buildings are being modified for new uses and skyscrapers have been built. Downtown Los Angeles is known for its government buildings, parks, theaters, and other public places.
In 2013, a Downtown Center Business Improvement District (DCBID) study showed that of the 52,400 people residing in downtown Los Angeles, the demographic breakdown was 52.7% Caucasian, 20.1% Asian, 17.0% Latino and 6.2% African American; 52.9% women, 47.1% men; and 74.8% of the residents were between 23 and 44. The median age of the residents was 3. The median household income was $ 98,700. The median household size was 1.8. In terms of educational attainment, 80.1% of the residents had completed at least 4 years of university. The study was a self-selected sample of 8,841 respondents in the downtown Los Angeles area. It was not a “census” but rather a comprehensive survey of downtown Los Angeles consumers.
More recently, downtown Los Angeles has attracted a commercial New York yuppie sector that is too keen to stake out ground for their projects.
The latest news is that a British company plans to remodel a historic building in downtown Los Angeles.
Hoxton and Los Angeles
Hoxton is a British Hotel Operator Who: Breaking News! – Just today (Dec. 29) he bought a historic building in downtown Los Angeles for $ 30 million and plans to transform the decaying structure into a sleek, modern hotel, according to JLL, the brokerage involved in the deal.
Hoxton owns hotels in London and Amsterdam and plans to open another in New York and one in Paris next year. The fact that he chose Los Angeles, the center of the city, says something significant about the growing appeal of the area.
Hoxton describes his brand as the “anti-hotel,” where travelers find not just a bed, but “a place where people can eat, drink, work and play at any time of the day.” Its character is indicated by the description given to it by the British newspaper The Independent, which called Hoxton’s outpost in Amsterdam “an almost painfully fashionable hotel in the most modern city in the Netherlands.”
Downtown Los Angeles seems to be perfect for that.
JLL has described downtown Los Angeles as the area where people seek to eat, live and work. It is a trendy area with a diverse residential neighborhood of about 50,000 people at the time of this writing. According to a JLL map that tracks millennials and baby boomers, downtown Los Angeles outnumbers baby boomers by 10% in a consumer market. In most industry markets in Los Angeles, the breakdown is from 25% of millennials to 21% of baby boomers. Sara Lo, a senior manager specializing in the hospitality business at the accounting and consulting firm Ernst & Young, says Sara Lo, “Downtown is thriving and international companies are taking notice.”
The area’s hotel market has long been dominated by corporate giants catering to business travelers. Tourists flocked to West Hollywood or beach communities like Santa Monica and Marina del Rey. The city area was once derided as a ghost town after five o’clock, but is now home to a lively restaurant and bar scene. Developers draw pages of small boutique “lifestyle” hotels, with uniquely designed rooms and high-end dining and nightlife offerings. And a recent Los Angeles Times commented that the investment is the latest sign that the neighborhood’s rebirth has created a place where tourists, not just business travelers seeking a comfortable environment, want to unwind. Proof: now the money comes from abroad. Investors around the world also value the place.
A Hoxton hotel at 11th Street and Broadway would join several others nearby.
Across the street will be the 148-room Downtown LA Proper Hotel which will be housed in an empty building dating from the 1920s. Two blocks away is the popular Ace Hotel, a boutique that opened last year in the Historic United Artists Building and is credited with bringing more investment to the area.
Even the big chains are getting in.
A Hotel Indigo, a fashion brand operated by InterContinental Hotels Group, is under construction as part of the Metropolis development of a billion dollar Chinese company near the Staples Center.
The downtown market is strong, with a 77% occupancy rate that exceeds the 75% average for the country’s top 25 markets, Lo said. Some predict an imminent threat of overbuilding, but the designers don’t want to think about it. Ernest Wooden Jr., president of the Los Angeles Convention and Tourism Board, builds momentum. It says: “The projects currently underway are critical to our long-term ability to attract both business and leisure travelers,” it said in a statement.
Areas around 11th and Broadway that saw little investment in the past are now increasing and several residential complexes are under construction, including approximately 650 apartment units from luxury developer Geoffrey Palmer. New York developer Georgetown Co. announced a $ 40 million project in September to remodel the historic Herald Examiner building into creative offices and ground-level restaurants. Several buildings on Broadway are decrepit and have been empty for decades. Others are chipped, covered in graffiti, bent under crumbling roofs and bruised with peeling paint. It doesn’t matter: they are being dismantled at unbreakable speed.
With New York yuppies, British shoppers, locals, and expats gambling their land in the region, downtown Los Angeles has outgrown its faltering footsteps in the early 19th and early 20th centuries. It has become an area to be reckoned with.
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