DTLA 2040 New Zoning Close to Implementation

2023-06-12 singlemalt Leave a comment

The Los Angeles City Council’s recent adoption of the DTLA 2040 Community Plan Update (DTLA 2040) was a major milestone in a nearly decadelong process to create a long-range land use plan and guiding policy document that will advance Downtown’s vibrancy and growth through the year 2040.

Drafted by city staff with input from many stakeholders, DTLA 2040 doubles the area in Downtown where housing can be built, eliminates parking requirements and implements the city’s new zoning code for the very first time.

DTLA 2040 includes updates to the Adaptive Reuse Ordinance (ARO) to make adaptive reuse even more effective in its goal of unlocking greater opportunities for creating housing, promoting sustainable development and preserving historic buildings. DTLA 2040s updates include removing minimum and average unit size requirements and allowing buildings built as recently as 10 years prior to conversion to be eligible for the provisions of ARO. The updates also allow basements and rooftop features to be used and not count against how much can be built on a site.

Available Property, Food Industry

Commissary / Commercial Kitchen For Lease, Los Angeles

2023-02-03 singlemalt Leave a comment

Industrial Commercial Kitchen Commissary
2,400 SF Cooler and 1,300 SF Freezer.
60′ Hood, Clarifier / Grease Trap, Floor Drains.
2 Fenced Parking Lots.
Ground Level Truck Loading Door.
800+ Amps, 240/600 V, 3 Phase Power.
Food Processing Health Dept Permit.
Ideal for meal kit prep, restaurant commissary, party event catering.
Downtown Los Angeles next to City of Vernon.
Off 10 Freeway at Alameda St.
Available listing for lease, as sublease through Jan 2027, not for sale.
Contact us with interest.

Commercial kitchen cooking and prep area

Racked dry storage area that is 23 foot high

Wash room, scullery with dual sinks and floor drains

Available Property, Food Industry

Cold Storage Freezer Building for Lease in Vernon, Los Angeles County

2023-01-17 singlemalt Leave a comment

Racked Cold Storage Space
±46,000 SF of Freezer/Cooler Space, 0° to 52° Convertible
37° to 40° Cooler with Trench Drain for re-packing
±5,417 SF Refrigerated Dock, 40°
9 Dock High Loading Positions
±4,000 SF of Corporate Offices
55,000 Square Feet of Total Building
$2.50/SF NNN

Note

Business Improvement Districts aka BIDs

2023-01-04 singlemalt Leave a comment

A Business Improvement District (BID) is a formally recognized non-profit organization dedicated to improving the quality of life in a defined region. BIDs vary in the supplemental services they provide, such as public safety, maintenance, marketing, and capital improvements. The efforts are funded by a special assessment paid by the property owners in the district. A BID is a public/private partnership, which allows governing bodies and property/business owners to unite in a collective effort for the maintenance, development, and promotion of their commercial district. They can help to manage vagrants and homeless encampments and all the filth and trash that they produce on city streets and sidewalks.

Map of Los Angeles Business Improvement Districts

BIDs in Central Los Angeles

The Downtown LA Industrial District BID extends from San Pedro to Alameda Streets and from 3rd Street to Olympic Boulevard— a nearly 50-block area in the heart of Downtown Los Angeles. This area is the historic home of seafood, produce, flowers and a variety of products shipped in and out of Los Angeles by air, rail and sea. It’s also home to wholesalers, restaurants, cafes, and in more recent years startups and mixed-use retail/office centers.

The South Los Angeles Industrial Tract Business Improvement District was established in 2007 and has had a tremendous impact in improving the area. SLAIT, aka the Goodyear Tract, has a long history as a vibrant industrial district and looks forward to a promising future. It is one of the more active business districts in the City, with approximately $1.4 billion in sales, over 200 companies, and approximately 4,000 employees. The South LA Industrial Tract BID is a self-imposed, annually assessed, Business Improvement District (BID) comprised of 152 commercial property owners representing over 400 parcels. The BID was formed with the sole purpose of enhancing the industrial area primarily through safety and maintenance programs and is approximately 22 blocks; an area bounded roughly by Slauson Avenue on the North, Florence on the South, Central Avenue on the East and Avalon Avenue on the West.

The Arts District is a fiercely original, urban neighborhood, situated on the eastside of Downtown, boarded by the Los Angeles River and walking distance to Union Station and City Hall. The district is home to galleries, restaurants, creative office space, live/work lofts and upscale condos with a hip urban vibe. The streets are rich in character as local street artists have turned building walls into canvases showcasing their artwork. Many of the neighborhood’s business establishments are tucked into early 20th century warehouses and former factories. Institutions like the Hauser and Wirth Gallery, the Southern California Institute of Architecture and the Los Angeles Clean Technology Incubator help give the Arts District its distinct character.

The LA Fashion District Business Improvement District (BID) serves a 107-block area generally between 7th Street to the north and the Santa Monica 10 Freeway to the south, and from Broadway to the west and Paloma Street to the east.

Governmental

New 4-5.5% ULA Transfer Tax for Properties Sold in the City of Los Angeles

2022-11-15 singlemalt Leave a comment

Measure ULA, commonly known as the “mansion tax,” would impose a new “Homelessness and Housing Solutions Tax” on transfers of residential and commercial real property in the city of Los Angeles valued in excess of $5 million.

Under the measure, sales of residential and commercial real property valued at over $5 million but less than $10 million would be subject to an additional tax at the rate of 4%, while sales of properties valued at $10 million or more would be subject to an additional tax at the rate of 5.5%. The new tax would apply to the entirety of the sale value, not solely the amount in excess of the $5 million and $10 million thresholds, and regardless of whether the property is sold at a gain or a loss. The thresholds would be adjusted each year based on inflation. The tax would apply to property sales occurring on or after April 1, 2023.
The new tax would be in addition to the existing documentary transfer tax imposed on property sales in the city of Los Angeles, which is imposed at a combined city and county rate of 0.56%.

This tax will have a negative impact on property sales, especially industrial real estate sales given they are generally sold at a higher value than many other types of properties. The tax could possibly make properties in the City of L.A. less attractive to buy.

Who will end up paying the new real estate transfer tax? Below are the percentage of sales based on recent data for each property type.

Single-Family Residences and Condos: 2.6%.
Multi-Family Apartment Buildings: 6%
Commercial (office buildings, retail, etc.): 11%
Industrial: 19%
Other (vacant land, utilities, etc): 1.9%

The ordinance exempts certain transfers from the ULA Tax. Transfers to non-profit entities, Community Land Trusts, and Limited-Equity Housing Cooperatives are exempt, as these are the types of transactions the City is intending to encourage.

On December 21, 2022, the Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles brought suit in state court challenging the validity of the ULA Tax. Plaintiffs argue that the ULA Tax is a “specific tax” prohibited by the California Constitution on the grounds that ULA Tax revenue must be used for specific purposes. The litigation is currently pending.

Above data from An Analysis of Measure ULA, by UCLA Lewis Center.

Industrial Notes & Trends