What in the Hell is Going On with The Higgins Building? Mills Act Lofts Not a Panacea

In one of the cleanest, quietest parts of Downtown Los Angeles, with plenty of restaurants, shops and transportation nearby, the Higgins Building is a beautiful historic live/work loft condominium building.

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Residents enjoy all of the original marble in the lobby and hallways, and the units have large windows and original flooring mix of concrete and historic tile. But there is a down side. Even though they have substantial savings from the Mills Act status, Higgins lofts have experienced a recent sell-off and minor glut. The reason — a substantial HOA Home Owner’s Association assessment is in the works.

Several years ago, the HOA sued the developer for construction defects and placed some catch nets to stop the crumbling building facade from falling onto pedestrians walking on the sidewalk.  The homeowners did not get enough money to pay for everything.

The L.A. Loft Blog has recently learned that the unfortunate home owners will get stuck paying millions of dollars to replace the decayed decorated coating on the outside of the building. Every homeowner may soon be required to pay as much as $25,000 or more to make up for the shortfall of funds.  It is not clear exactly how the homeowners will finance the big cash outlay.

As a result, home prices at Higgins have been comparatively stagnant as compared to many other Downtown buildings.  A 650 sq ft interior unit that sold for $377,000 (without parking) less than 2 years ago will only sell for around $387,000 today.  Not too bad — but compare that to a Molino loft with a view that sold in the Arts District for around $550,000 that will sell for more than $680,000 in today’s real estate market. While they are not qualified for Mills Act tax savings, the Molino lofts makes up for it with low HOA dues, convenient parking and a rooftop pool deck.  The Molino lofts building can expect to see further increase involve after the new hip shopping center opens across the street, adding highly desirable retail to the immediate industrial neighborhood. The Higgins Building does have its benefits however in the form of Mills Act savings, and some sellers are actually paying the assessments so that the buyer might be spared a major unexpected expense.

Get a list of Mills Act lofts.  Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN L.A.  [MAP]

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SEARCH LOFTS FOR SALE UNDER $400,000  |  $800,000,  |   $30,000,000
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Copyright © 2016 This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association, seller or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

In Downtown's Arts District, Cash is King as Average Loft Price Approaches $1 Million

Twenty years ago, it was all but abandoned. Only a small band of die-hard artists embraced the area. Now, the Downtown district is on top of the world. According to MLS statistics, the average Arts District loft Recently Sold Price has now surpassed $945,000.

Arts District  |  For Sale  |  For Lease

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Because some of the recently sold comparable loft units in the area were comparatively dark and unattractive, the buyers of today’s brighter, prettier active listings in the creative neighborhood might pay as much as $100,000 above the comps. Because of the big difference in price between the comparable recently sold lofts and the lofts currently for sale, those who need to finance may risk losing out to cash buyers because because lenders are not usually willing to fully fund new loans that are $100,000 above the selling price of recently sold comparable properties in the same building or right across the street.  Cash buyers don’t have that problem because they don’t need an appraisal, and are often willing waive the appraisal contingency, saving the seller from worrying about an appraiser nixing the deal.

Home prices are a growing issue. Knowing what urban real estate recently sold is critical for both buyer and seller to know what to expect as a selling price, and also giving a clue as to what kind of terms might be acceptable. Take a look at the list of recently sold Arts District lofts PDF at arts-district-recently-sold.

Arts District  |  For Sale  |  For Lease

The real estate news this week shows that buyers are getting tired of seeing hundreds of lofts that may or may not match what they are looking for, and risking missing out on just the right loft.  How many great deals on amazing Arts District lofts are we missing?  Get a free list of unlisted lofts, off-market condos and unadvertised apartment bargains in DTLA. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN L.A.  [MAP]

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SEARCH LOFTS FOR SALE UNDER $400,000  |  $800,000,  |   $30,000,000
Browse by Building  |  Neighborhood  |  Size  |  Bedrooms  |  Pets  |  Parking  |  More

arts-district-loft-kitchen-modern-molino

Copyright © 2016 This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association, seller or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.