Developers betting on seedy neighborhoods for luxury projects
“We have projects that are gritty and fantastic”
That’s the latest term being used to describe luxury projects in seedy neighborhoods, with developers increasingly seeking out far-from-gentrified areas for their for high-end projects, the Wall Street Journal reported.
Several of these developments have risen in L.A., including Trumark Urban’s Ten50 in South Park — a Downtown Los Angeles neighborhood where crime is still high compared to other parts of the city.
“We have projects that are gritty and fantastic. We talk about them being ‘grit-tastic,'” Trumark Urban’s managing director Arden Hearing told WSJ.
The San Francisco-based developer has sold condos at Ten50 for anywhere from $500,000 to $4 million since launching sales last year, and at lightning speed.
Developers are betting on these buildings’ amenities and shifting consumer preferences, rather than the specific neighborhood, to lead sales. They’ll also follow high-profile employers, who tend to revitalize areas with their educated workforce and influx of capital.
Ten50, with its modern-looking lobby, resort-style swimming pool, drone delivery and screening room, has enough merit to attract Gen X and Gen Y buyers who don’t mind the shabby streets surrounding it. Just down the street, Greenland USA’s Metropolis development has already sold out almost 80 percent of the luxe condos in its first tower. Upon completion in 2019, more than 1,500 condos, a hotel and retail options will arrive in the up-and-coming South Park. [WSJ] — Natalie Hoberman