By Jack Witthaus
CoStar News
Investor Proposes More Than 235 Apartments in the Westlake
District
A pair of properties may soon make way for a large apartment development near downtown Los Angeles in another sign of a resurgence for an area that was long seen as undesirable for real estate investment.
KT Real Estate and HL Properties America have advanced plans for construction of roughly 238 apartment units in a seven-story building with nearly 10,000 square feet of commercial space at 1925 W. Olympic Blvd. and 936 S. Westlake Ave., according to city of Los Angeles documents. Around 34 units would be designated for people with very low income.
The site is in the Westlake neighborhood, which for years had a reputation for overcrowding and a lack of resources and was called “blighted” by the Los Angeles Times in 2017. However, apartment investors and developers have been lured by the neighborhood’s proximity to jobs in Hollywood and in downtown Los Angeles along with a nearby emerging bar and restaurant scene.
The activity comes as Los Angeles is facing a severe housing shortage and, according to the city’s planning department, needs to add 457,000 units by 2029.
In June, San Francisco-based Stockbridge bought the 200-unit Alexan Bahay at 330 N. Westlake Ave. for nearly $138 million, or about $688,000 a unit, well above the market average of $270,000 a unit. The deal showed demand for Westlake apartments in what was the largest price paid for a multifamily complex in Los Angeles so far this year. The property was 93% occupied at the time of sale.
The project is expected to have a community garden, gym, open deck courtyard, pool and terraces. The developers, both based in Los Angeles, brought on local architect DGB Line to design the project, according to city documents. A roughly 11,200-square-foot hot pot restaurant on the site would be demolished to make way for the development.
The Westlake market’s apartment vacancy rate is 3.6%, near the greater L.A. average of 3.4%, according to CoStar data. The market’s average monthly rent is $1,470, well below the regional average of $2,183. That low monthly rent average is reflective of a market where still nearly two-thirds of apartment properties have one- and two-star ratings.
There are roughly 828 units under construction in the Westlake market, according to CoStar data.
Witthaus, Jack. “Once Written Off, This LA Neighborhood Attracts Apartment Development Plans.” Costar Group, 2 Aug. 2022, https://product.costar.com/home/news/1642649295.