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:

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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.

Olympic Tower Los Angeles

OlympicTowerLA.com  811 W Olympic Blvd, Los Angeles, CA 90015

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A new mixed-use hotel, retail and residential building development is under way in Downtown Los Angeles on Olympic.  Across the street from The Ritz-Carlton, the new building will replace what is currently Downtown’s most convenient car wash.  The cars of DTLA will get a little dirtier as there are no other quick drive-through car washes in the booming neighborhood.

With some unusual features including a weird pinch in the middle, Curbed LA calls the new building design “bonkers”.

At the end of 2015, plans were unveiled for a redevelopment of the Downtown Car Wash in South Park, Olympic Tower 60-story tower with LED signs and live plants interwoven into its exterior, along with a rooftop garden.  374 residential units, 33,500 square feet of office space, a 10,800-square-foot conference center, and more than 65,000 square feet of restaurant and retail space will join a 373-room hotel.

Architecture firm Nardi Associates says that the building will feature a structural grid with live plantings, like a gigantic “urban tree”.  An open-air atrium will be encased by a metal structure with a sloping roofline, so the highrise will have a sharp roof instead of a helipad.

In 1980,  the car wash developer paid only $525,000 for the parcel. By 2005, the land was valued at $2.4 million. In 2014, developer Ben Neman bought the parcel for $25 million.

The building’s height means that it would block views of the Hotel Figueroa. There is no word on whether the residential portion will be rental or condo, but rental is more likely based on what most other developers have been choosing.

Be among the first to find out if the new highrise will contain rental apartments or condominiums for sale. Get Olympic Tower updates in your email. Fill out the online form:

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

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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 Not associated with the home owner’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.