Residential prices have skyrocketed in Playa Vista

Average price-per-square-foot increased 47 percent in the span of a year

Apr.April 28, 2016 04:30 PM

Playa Vista, a 1.3-square-mile planned community about a mile from the Pacific Ocean, has become a tech hotspot known for tenants like Google, YouTube and Facebook. It has also attracted residents willing to pay top dollar for homes within easy reach of company headquarters.

The setup aligns because many tech workers can afford luxury condos and apartments, said Dori Nolan of Capri Investment Group, which owns property in Playa Vista on behalf of institutional investors.

“The average household income for a high-tech individual in Los Angeles in 2014 was approximately $95,000,” she said. Meanwhile, the average income in Los Angeles is currently $58,023.

Playa Vista residential properties such as ICON, Park Homes and Capri Court continue to experience an uptick after reaching record sale prices in Q4 2015. The average price per square foot increased 47 percent from Q4 2014 to Q4 2015, according to Playa Vista Living Real Estate data.  

“Playa Vista has extremely high barriers-to-entry with an ecological reserve at the western boundary and an office campus at the eastern boundary, making the area exceptionally attractive,” Nolan said, adding that the masterplan is almost built out.

With increased demand and limited inventory, homes are also appreciating. The average resale price of a Playa Vista single family home was $900,000 by mid-2015, up more than 17 percent from the previous year, according to data from Playa Vista Living Real Estate.

New construction is outfitted specifically for the tech-reliant tenants that developers hope to attract. Marlowe, one of Playa Vista’s newest neighborhoods to open, is selling homes with views of Yahoo’s headquarters, along with the YouTube and IMAX offices. This may seem like an odd selling point, especially on the beach-view-obsessed Westside of Los Angeles, but in the context of work-live-play developments, it fits the pitch.

Also fitting: there are category 6 data connections in nearly every room in the Marlowe properties.

Built by Brookfield Residential, which took over as Playa Vista’s master developer, the 30 single-family homes in Marlowe are among the priciest in Playa Vista. While most new single family homes list in the low- to mid-$2 millions, homes in the Marlowe have hit the $3 million mark, with several bypassing it entirely for higher figures.

Related Articles

AB 1482 is set to cap rents on units across the LA area (Credit: Wikipedia and iStock)

Here’s what California’s rent control bill means for LA County

A rendering of Del Rey Pointe and a map of the project site (credit: LADCP)

To reach the tech giants in Playa Vista, apartment developer wants to build a bridge

Los Angeles homes (Credit: iStock)

In LA’s residential market, inventory is up and sales are down, Q2 report shows

Tishman Speyer CEO Rob Speyer and renderings of Collective & Brickyard campuses (Credit: Tishman Speyer)

Tishman Speyer eyes $323M recap of Playa Vista portfolio

L.A. rents increased despite a national slowdown.

It’s still unaffordable to live in LA: report

LA County is seeing more listings

Resi listings are up in LA County, but buyers are staying home Chief Economist Danielle Hale and San Francisco

In the Bay Area, “affordable housing” is relative

Northwood Investors John Kukral, Tishman Speyer CEO Rob Speyer and renderings of Brickyard & Collective campuses (Credit: Tishman Speyer)

Tishman in talks to buy Northwood’s stake in Facebook, Yahoo-leased office portfolio