7.12.2016 | The Metropolis – Rusty Tweed team
Multifamily units in Downtown LA (DTLA) have tripled over the past 15 years. There are another 22,000 proposed or under construction. One of the most high profile new projects is the $1B Metropolis.
For decades, developers have tried to turn the six-acre Metropolis site into more than just parking lots. Greenland Holding Group has succeeded where others have failed largely because it has a direct line to millions of potential buyers in mainland China. Pin Tai, president of Cathay Bank, said “their target customer is probably 30 percent Chinese investors.” Chinese buyers are attractive as 70 percent of them pay all-cash. It’s important to lock these buyers in first as following the financial crisis. Most banks demand up to half a building to be under contract before they will approve a mortgage.
According to Greenland USA director Ryan Aubry, the Chinese development firm was drawn to LA because it is a city in transition. It’s therefore perceived as a destination to invest in.
Metropolis is expected to be a boost for the surrounding area. It will include the 18-story Hotel Indigo, in addition to ground-level restaurants and stores. Low-level studios begin at the $600,000 mark. Top floor two-bedrooms go for over $2 million.
“Everything you could really want is here,” said Michael Altneu, vice president of marketing at Douglas Elliman Development Marketing, which is handling the building’s listings. “There’s a yoga studio with a mediation garden and a dog park with a bathing station.”
Over 1,500 condos will be added to Los Angeles’ scarce housing market by the time, Metropolis’ three towers are complete sometime in 2018 . The average condo price in downtown LA hit a new high: $803 a square foot, according to the Mark Company. Metropolis is the first of three-mega developments owned by Chinese companies to be built downtown over the next few years.