Have you been to the Promenade lately? I went a couple weeks ago, mid-Saturday, and was saddened seeing all the closures.
Obviously, the pandemic has been merciless on restaurants and businesses, owners and employees. I couldn’t help but wonder whether all the closures are simply a result of Covid or was this inevitable as a result of the shift away from brick and motor retail to online buying . Sur la Table, Barnes & Noble and Banana Republic are closed making the Wilshire-end look like a ghost town. The other bookend to the Promenade, Santa Monica Place, is also eerily still, except on the sunniest days of the weekends. Unless and until the movie theaters and the Apple Store re-open, drawing pedestrian traffic big changes are will be necessary if downtown Santa Monica hopes to regain its status as a date night, shopping, and tourist destination once the pandemic loosens its grip.
Hoping to turn this around, the Santa Monica City Council held its first study session on Feb. 9 to discuss the development of a revitalization plan for the Third Street Promenade.
“The last year brought unprecedented challenges to our community and business owners and while there are still difficult days ahead, we stand at the precipice of reinvention today,” DTSM CEO Kathleen Rawson said. “The pandemic only exacerbated the impacts of online shopping on brick and mortar retail, we have been working on how to best counteract these effects for some time now. This new Vitality Plan concentrates primarily on private uses and creative zoning that will spark the change we need.”
Downtown Santa Monica Inc., the nonprofit organization that manages the three-block open-air pedestrian mall, has enlisted experts in public space environments and retail strategy to work with the city, property owners and architecture/urban design, marketing and hospitality specialists to develop a revitalization plan for the shopping center.
I read an interesting piece in the New York Times today about commercial property in London and how the tenants are deciding what they will pay the owners of the properties.
Over the next three months, the partners will be meeting with stakeholder focus groups and the City Council to develop the plan. Following the first study session next week, a draft plan of action is expected to be delivered in March with final adoption by the DTSM board of directors in April, Rawson said.
City News Services
DID YOU KNOW? According to the Fed, the median net worth for people between ages 35 and 44 is $91,300. The average is $436,200. Those aged 65-75 are worth triple that….in case you were wondering where the real money is! Averages and medians can be vastly different!
DID YOU KNOW? While the headlines speak of an exodus from the Bay Area, the reality is many zipcodes in the area saw impressive gains in 2020.
DID YOU KNOW? Millennials—adults born from 1981 to 1996 (72.1 million of them)—represent the largest share (38%) of homebuyers in the U.S and wealthy millennials are attracted to large properties. Wealthy young people? Of course! Wealth amongst this set is coming from finance and tech-fueled new wealth creation, inheritance, and business creation. Unlike prior generations, they are buying homes later in life, and because of this they are buying the larger kind of homes traditionally associated with a second or third purchase as buyers ‘climb the ladder’. This generation is more educated, more tech-savvy, and more likely to be beneficiaries of the largest wealth redistribution in history. (Bloomberg)
DID YOU KNOW? Homebuilding was strong in December and finished the year up 11.8%. All other construction combined was flat in 2020, down 3% in the private sector. 2020 Construction spending exceeded $1.4 trillion, up 4.7% from 2019. (Census Bureau)
DID YOU KNOW? During 2020, the homeownership rate jumped to roughly 67%, up nearly 3% from a year earlier after remaining largely flat for a decade, according to the Census Bureau. Price appreciation is now outpacing wage appreciation in 90% of housing markets nationally, according to Attom Data Solutions. The median prices of single-family homes and condos are less affordable than historical averages in 63% of U.S. counties, up from 54% a year ago.(CNBC)
DID YOU KNOW? The U.S. economy is expected to expand more rapidly in 2021 than projected in July, but it’ll take several years for output to reach its full potential and for the number of employed workers to return to its pre-pandemic peak, according to the Congressional Budget Office. Annual growth is likely to average 2.6% through 2025. Expect modestly higher inflation and higher interest rates over the coming years than anticipated in July. (Congressional Budget Office)
Tons of Real Estate News in the last two weeks!
Ten new listings came on the market since my last update, and two have already gone under contact!
323 25th Street– Listed by Pence Hathorn Silver for $3,449,000. This lot value opportunity is expected to sell with multiple offers. The 8,700+/- foot lot is surrounded by mature landscaping and is just a few short blocks away at the Brentwood Country Mart. There should be no roadblocks to your success at obtaining a demo permit (No 5D3 designation or listing on the SM Historic Inventory list).
519 Stassi Lane– Listed by Pence Hathorn Silver for $5,570,000. The finest ocean & canyon views of any home on Stassi lane. Excellent open layout with 4 bedrooms plus a versatile lower level that would make an great home office, gym or guest suite.
430 Adelaide Drive– Listed for $11,750,000. Development opportunity on gorgeous view lot, over 23,000 sqft! This one has been on and off the market since 2018, listed as high as $13,750,000.
446 23rd Street– Listed for $6,500,000. This Marmol Radziner architectural is over 4,100 sqft with a pool. Last sold in 2007 for $3,500,000.
2012 La Mesa Drive– Listed for $12,995,000. Originally built in 1926 and beautifully updated. 16,000+ sqft private lot with pool. Last sold in 2016 for $10,700,000.
609 E Channel Road– Listed for $50 MILLION! This mega estate (with matching price tag) is on one of the largest residential lots in Santa Monica, approximately 3.35 acres. 14,000 sqft feet of living space with not one, but two guest house and a beautiful pool. Last sold in 2015 for $23M.
238 19th Street– Listed for $6,850,000. Modern farmhouse with pool! This beautiful two story home was a “ground up renovation” in 2017 when it last sold for $6,200,000.
458 26th Street– Listed for $2,998,000. Cute, livable and nearly 3,000 sqft on an 8,700 sqft lot. Last sold in 2006 for $1,780,000.
Three new escrows were reported this week.
315 19th Street– Listed for $3,599,000. Land value opportunity. This 8,932 sqft lot sold in less than two weeks with multiple offers.
308 12th Street– Listed for $3,895,000. Nicely updated 3 bedroom home was listed just above land value and received multiple offers after about a week on the market.
316 21st Street– Listed for $4,200,000. This one has been on the market since October.
Six properties sold!
427 14th Street– Sold by Pence Hathorn Silver with multiple offers for $7,777,000. Originally listed at $7,695,000.
703 14th Street– Sold by Pence Hathorn Silver for the asking price of $3,475,000.
208 Alta Avenue– Sold for $4,276,000 after just two weeks on the market. Originally listed for $4,350,000.
446 Lincoln Blvd– Sold for $3,260,000 after just a couple weeks on the market. Originally listed for $3,229,000.
703 12th Street– Sold for the asking price of $4,375,000.
348 Sycamore Road– Sold for $2,525,000. Originally listed for $2,895,000.