Playa Vista Real Estate – New Developments Present Opportunity
The Playa Vista development is one of the newest residential and commercial developments in the Los Angeles area and has significantly contributed to the improvement of “Silicon Beach”. With companies like Microsoft, Facebook, and YouTube setting up offices there, as well as Whole Foods and entertainment providers already having committed to taking space in the new Phase II development, the area has potential for even more growth. For buyers looking to stay on the west side at an affordable price, the Playa Vista real estate market presents a great opportunity.
Overview of Playa Vista Real Estate
Playa Vista is generally bordered by Lincoln Boulevard on the west, the 90 freeway and Ballona Creek on the north, the 405 on the east, and the Del Rey Bluffs on the south. Within Playa Vista are two very recent residential developments – Phase I (highlighted in green) and Phase II (highlighted in yellow). According to the Los Angeles Times’ Mapping Los Angeles project, it contains a highly diverse and educated population.
Phase I Of The Playa Vista Real Estate Development
In the year 2000, Playa Vista’s population was only 2,416 according to the United States Census Bureau. The next year, Phase I of Playa Vista’s development began. Phase I consisted primarily of development of luxury as well as affordable condominium units, along with some office and commercial space on the ground floor as well as some recreational amenities such as a dog park and childrens’ playground. The development added over 3000 residential units to what was previously hundreds of acres of dirt. It was one of six communities in the United States selected in 1998 by President Bill Clinton as a National Pilot Project of the Partnership for Advancing Technology in Housing. As such, it integrates recent technological advances both for comfort and preservation, including servicing all parks and recreation centers with 100% recycled water.
Playa Vista’s development was temporarily stalled by the discovery of methane seepage by Exploration Technologies Inc. in 2000. After the Playa Vista City Council ordered that further studies be conducted, a Playa Vista study concluded that Exploration Technologies’ conclusion was incorrect. In 2002, the Los Angeles Department of Building and Safety required the installation of a gas mitigation system, and the issue was resolved. The majority of Phase I residential properties were finally complete and sold between 2006 and 2008. By the time the project was complete and properties had begun to sell, the population had almost tripled to 6,010 based on Los Angeles Department of City Planning estimates.
Phase II Of The Playa Vista Real Estate Development
Phase II was not “green-lighted” until 2012 and is still undergoing construction. Phase II involves development of The Runway at Playa Vista, which includes an additional 2,600 homes (including condos, townhomes, and single family residences), a shopping center, office buildings, and parks on property that previously housed an airstrip and manufacturing facility used by Hughes Aircraft. Although the project is not yet complete, it is extremely promising, with Whole Foods, a movie theater, drugstore, vegetarian restaurant, and bank already committed to some of the commercial space. The new residential village includes six new “neighborhoods” with properties starting at the low $1ms. There is also a community center underway with an interior pool, gym, tennis courts, and more.
Phase II, and the general Playa Vista area, is also buoyed by the “Entertainment, Media, and Technology District”, which is immediately to the east of the Phase II development. This area of Playa Vista contains commercial space that houses technology giants Facebook, Microsoft, and YouTube.
The Playa Vista real estate market is currently booming with the introduction of new residences. In the fourth quarter of 2011, immediately before the green-lighting of Phase II, the median sale price of residential properties was $424,500.00. In the recently past second quarter of 2014, the median sale price was $745,000.00. The significant increase is largely due to new properties being sold in the Phase II development at $1m and more. However, the introduction of the new Phase II properties has also driven down the re-sale value of the recently built Phase I properties, which present an interesting opportunity for buyers.
Given the recent developments in Playa Vista, it is difficult to predict where the Playa Vista real estate market will eventually settle once the dust has cleared. What is clear is that the area shows significant promise, especially with the introduction of a grocery store and entertainment in the Phase II development – items that are currently noticeably lacking in the Playa Vista area. One would expect a slight decrease in prices after the Phase II residential properties are completely sold (prices on new homes tend to drop for the first few years – nobody is willing to spend as much for a two year old home as they are for the same new home).
If you would like to further discuss how Esquire Real Estate Brokerage, Inc. can help you in the Los Angeles and Playa Vista real estate markets, feel free to give us a call at 213-973-9439 or send us an email at email@example.com.