Chinese developers remaking downtown LA

[LA21st]

http://http://www.latimes.com/business/la-fi-0825-china-dtla-snap-story.html

I'm aware Chinese investment is happening in other cities, but I'm not sure if it's on this scale. At least outside of NYC, CHI, SF.

LA formers are aware of these developments, but is anyone else? This is exciting stuff, and makes you wonder what downtown LA (and other neighborhoods) will turn out to be.

Downtown LA is attracting Vancouver high rise developers as well.

There are 15 buildings u/c over 28 stories right now, and several more in the 30-45 story range that are approved or proposed. Most of these are in the South Park/Staples Center neighborhood, which will end up with a skyline of it's own.

[chris08876]

EB-5 is a very popular program for funding projects. LA is not the only city where Chinese capital is pouring through. Seattle, Miami, and NY are just some. Its a good thing they are investing in the U.S.. I'd rather them bring skyscrapers here than there. Greenland is one developer that has been on a building spree in the U.S..

[Centropolis]

i was wondering when this would happen...

[the urban politician]

One noteworthy example is fraught with fraud, when a guy tried to use the program to develop a giant hotel near O'Hare but ended up defrauding all of these Chinese investors out of their money.

He now is facing jail time.

Probably Chicago's most noteworthy example right now is the Vista Tower which is about to begin construction

[LA21st]

Originally Posted by Centropolis

i was wondering when this would happen...

I think it's just the start of it. Downtown LA still isn't crazy desirable yet. More than desirable than it was, but still a ways to go. There's 8-9 buildings u/c over 40 flloors, which isnt bad. Next year we'll see the impact of this boom on the skyline though.

Koreatown, Century City, North Hollywood and Hollywood are also going to see more 25-40 story buildings from China/Canada developers as well. I believe Hollywood and Koreatown have almost a dozen 30 story plus prosposals together right now.

LA has a advantage over any other city not named NYC and SF though with Chinese capital. It has the massive Chinese population, as opposed to Miami, Chicago etc.

A recent Hollywood reporter article said LA's becoming more popular with Saudi's lately, so who knows if LA starts drawing that oil money soon.

Either way, LA is changing...

[Gordo]

Originally Posted by LA21st

LA has a advantage over any other city not named NYC and SF though with Chinese capital. It has the massive Chinese population, as opposed to Miami, Chicago etc.

In terms of percentages Seattle has just as much of this, if not more (both capital and population). There are probably 20 or so highrises in various forms of permitting or development in Seattle/Bellevue that are 100% Chinese-funded and in many residential cases explicitly marketed mostly to mainland Chinese.

I'm curious to see if Vancouver's new tax sends even more of this investment money flooding into Washington and California.

[dc_denizen]

How is it legal to explicitly market to mainland Chinese?

That said, this is good news. Wall Street generally doesn't like real estate with even a whiff of risk

[Gordo]

Originally Posted by dc_denizen

How is it legal to explicitly market to mainland Chinese?

I mean they're only spending money on marketing in mainland China.

[LA21st]

Originally Posted by Gordo

In terms of percentages Seattle has just as much of this, if not more (both capital and population). There are probably 20 or so highrises in various forms of permitting or development in Seattle/Bellevue that are 100% Chinese-funded and in many residential cases explicitly marketed mostly to mainland Chinese.

I'm curious to see if Vancouver's new tax sends even more of this investment money flooding into Washington and California.

The difference is downtown Seattle has been desirable for awhile. LA's older urban areas are still not really desirable, and it's already getting this type of investment.

Basically I'm saying, what is going to happen when downtown LA and the other urban areas actually become desirable for most people?

If downtown LA is already building 50 story residential buildings, it's potential is insane. You have to remember that kind of high rise living is very new to LA

[mhays]

Downtown LA will be really good in 10 years, and maybe a lot sooner. It's already pretty good. The current wave will cause the next wave, or a continuation of the current one. As transit keeps improving hopefully they can do less parking, which is necessary to get truly dense projects. There's not a ton more room to grow in the middle, so maybe it'll be more about continued outward expansion of the greater downtown area, toward Staples, the Fashion District, etc.

As for Seattle, the Chinese and Vancouver-based developers (Chinese descent and otherwise) have been streaming in with proposals and land deals in the last couple years especially. They'll represent a much larger percentage of our volume in a year or two vs. today. DTLA might have been fertile ground sooner in part due to not having as much interest from local developers a few years ago.

[dabcom]

Awesome!

[caligrad]

The great thing about LA getting attention from Asia/Chinese/Middle East investors is the fact that as of right now its really easy to "Make their mark" on the skyline.

Best example. Look at Korean air. First tower with a spire downtown, even everyday people are already taking notice.

Metropolis, taking over an near 5 decades old parking lot right next to the freeway, Its impact on the skyline is already making people driving into downtown look up and say WOW.

Overseas investors cant make that same mark in NYC or Chicago as they can here. Not to mention compared to those 2, land here is relatively cheaper, housing is in HIGH demand and our transportation network is FINALLY starting to get serious.

The best thing about this current wave of investments is the fact that it has literally flipped the development/investment ice berg for all of LA. Meaning, these investments will demand more and more and more. Especially in downtown.

[Via Chicago]

Originally Posted by chris08876

EB-5 is a very popular program for funding projects.

Cant say Im a fan of it.

http://www.nytimes.com/2016/03/16/us...-scrutiny.html

Specifically this part

“I don’t believe that America should be selling visas and eventually citizenship,” said Senator Dianne Feinstein, Democrat of California, who wants to terminate a part of the program that allows foreign applicants to invest through regional development centers that pool investor money. “The right to immigrate should not be for sale.”

[chris08876]

Originally Posted by Via Chicago

Cant say Im a fan of it.

http://www.nytimes.com/2016/03/16/us...-scrutiny.html

Specifically this part

Why not though? We are attracting highly educated folks. Arguably who benefit society more so. Remember, EB-5 requires that an investor to generate at least 5 jobs or more based on "X" type of project. Seems much more useful to society than immigrants who just come here, and have 5 kids, and work low wage jobs.

EB-5 is a great way to fund projects, attract great talent, and boost the economy of certain regions. Keep in mind though that the cap is limited. Its kinda small in comparison to conventional immigration.

[whatnext]

Originally Posted by dc_denizen

How is it legal to explicitly market to mainland Chinese?

That said, this is good news. Wall Street generally doesn't like real estate with even a whiff of risk

As a Vancouverite, I warn you to be careful of what you wish for.

[Austinlee]

Originally Posted by whatnext

As a Vancouverite, I warn you to be careful of what you wish for.

What has happened there? When you live in a part of the country like me that has been bleeding population for the entire time you have been alive (I am 35 yrs old) it's so hard to see the perils of attracting people to your city.

[whatnext]

Originally Posted by Austinlee

What has happened there? When you live in a part of the country like me that has been bleeding population for the entire time you have been alive (I am 35 yrs old) it's so hard to see the perils of attracting people to your city.

The Canadian and British Columbia governments are complicit in fuelling Vancouver's housing crisis as foreign Chinese buyers continue to shut local residents out of the market, a new study says.

Josh Gordon, the study's author and assistant professor in the School of Public Policy at Simon Fraser University, said people's dreams of owning a home are being crushed because they can't compete with foreign investors and no longer accept "distraction" excuses such as low interest rates for the state of the super-heated market.

"People recognize what's going on, and they're willing to call a spade a spade," he said, stressing that such views are based on reality, not racism...

...The average sale price of a single-detached home in Metro Vancouver was $1.4 million in April, a 30-per-cent increase from a year earlier, according to the Real Estate Board of Greater Vancouver....(bold mine)

http://www.cbc.ca/news/canada/britis...yers-1.3572499

[ChargerCarl]

Maybe they should consider rezoning SFR neighborhoods?

[whatnext]

Originally Posted by ChargerCarl

Maybe they should consider rezoning SFR neighborhoods?

Red herring.

Housing Starts 2015
City Metro Population Starts
Vancouver 2.5 mil 20,863
San Francisco 4.65 mil 12,766
Los Angeles 9.8 mil. 23,500

Notice anything odd there?

[ChargerCarl]

Originally Posted by whatnext

Red herring.

Housing Starts 2015
City Metro Population Starts
Vancouver 2.5 mil 20,863
San Francisco 4.65 mil 12,766
Los Angeles 9.8 mil. 23,500

Notice anything odd there?

Yeah, they all stifle development.

For real though, if the chinese want to throw money at us to own an asset that we get to keep on our soil and collect taxes on we should let them. Just keep building and building until prices fall.