Los Angeles Real Estate in Wait-and-See Mode on Trump Tariffs

Los Angeles real estate is facing a new unknown amid the trade wars set off by President Donald Trump’s tariffs.

The hand-wringing comes at a fragile time for Los Angeles County, which is on the cusp of a massive, multi-year rebuilding effort from January’s Palisades and Eaton fires. Meanwhile, Southern California industrial landlords are facing their own uncertainty as the flow of goods coming from the San Pedro Bay Ports will no doubt be impacted, setting off a chain reaction that will ripple across warehouses and distribution centers from Los Angeles County to the Inland Empire.

First-quarter industrial leasing in L.A. County was flat from the year-ago period, according to an NAI Capital report. Meanwhile, sales in the quarter dropped 57 percent from the year-ago period, amid high interest rates.

In residential, it’s more of a mixed bag. While developers may be waiting to see how materials pricing shakes out, residential agents on the high-end are staring any concerns down. That latter group isn’t seeing any stalling of activity among luxury buyers looking to build new homes for themselves — not yet, anyway.

Corona del Mar rising

The Newport Beach neighborhood of Corona del Mar has been notching some big wins of late.

That was kicked off with the $26 million sale of 2201 Bayside Drive, marking the neighborhood’s priciest deal so far this year.

Then there was home flipper Belwood Investments, which paid $4.3 million for 2607 Ocean Boulevard. Belwood founder and CEO Steven “Bo” Belmont told The Real Deal his company will add about 2,000 square feet and new upscale finishes before selling it for between $11 million and $12 million.

“Corona del Mar really speaks for itself,” Belmont said, citing its beaches and walkability to dining.

Ending the week was Friday’s close of 1615 Bayadere Terrace, which sold for just under $20 million in Corona del Mar’s Irvine Terrace community. The deal edged past a 2022, $19.5 million sale that had previously held the record as the priciest in Irvine Terrace.

New idea for wildfire aid comes courtesy of “mansion tax”

Los Angeles City Council members think a $15 million dip into Measure ULA could help buoy wildfire victims in need of rental assistance.

The City Council approved a motion to study whether it could funnel the ULA funds toward rent for those impacted by the Palisades Fire. The proposal would not apply to residents displaced by the Eaton Fires, since Altadena is an unincorporated part of Los Angeles County.

Voters approved Measure ULA on the 2022 ballot, with the tiered tax on commercial and residential property going into effect in 2023. The tax is adjusted annually, with new thresholds taking effect June 30. At that time, properties starting at $5.3 million will be taxed 4 percent, while 5.5 percent will be applied to those priced at $10.6 million or more.

This is the second time Measure ULA has surfaced in wildfire rebuild talk.

Last month, Los Angeles Mayor Karen Bass was asked during a press event whether a temporary stop on the tax could be applied in the Pacific Palisades.

City attorneys are now looking into whether the voter-approved tax could be temporarily paused.

Sunset Strip retail comeback?

Sunset’s been hammered by a string of tenant departures.

That list includes restaurants such as Le Petit Four, The Den on Sunset, Hudson House and Rock & Reilly’s. There was also the closure of the flagship for L.A. boutique retailer Fred Segal.

A new mixed-use project, called The Now, at the corner of Sunset and La Cienega boulevards could help stage a comeback for the famed retail and restaurant corridor — or, at least a portion of it.

That’s because Round 1 Delicious is absorbing 19,300 square feet to create an eight-restaurant concept at The Now. The “dining collection,” which is called Sora, will offer upscale Japanese and Chinese dishes.

About two-thirds of The Now is spoken for with the Round 1 lease, leaving a rooftop and indoor office space available on the third level.

LA Convention Center renovation cost ballooned to $2.2B

The Los Angeles City Council agreed to shell out $27.7 million on design and engineering work in the latest activity around the expansion of the city’s convention center.

Not surprisingly, the estimated project cost has about quadrupled from three years ago and now sits at $2.2 billion. In 2022, an estimate pegged the renovation’s cost at $500 million. That figure was more recently updated to $1.4 billion before jumping to the current total.

A final vote on the construction project is expected in the summer, with a groundbreaking slated for September.

The expansion will add more than 1 million square feet to the facility, consisting of exhibit halls and meeting rooms.