Downtown Los Angeles was once shunned by Wall Street as a weak office market, but now New York City investors are increasingly being drawn to the West Coast.
Los Angeles County has seen a 23 percent increase in the dollar volume of investment from New York this year compared with 2013, according to a Cassidy Turley report cited by the Los Angeles Times.
And New York investment in the county has surpassed $4.4 billion since the beginning of 2012, targeting all types of commercial properties, including office buildings, hotels, warehouses, apartments and land.
One explanation for the investment surge is that Downtown L.A. is reminiscent of what New York City neighborhoods looked like before redevelopment swept through Manhattan.
“Los Angeles has hit critical mass in downtown,” said Greg Vilkin of Related. “Firms from New York show up and say, wow, I see the potential I saw in Hell’s Kitchen a decade ago. I watched Tribeca and the High Line and I see what’s going to happen.” [L.A. Times] – Christopher Cameron