Renting Post Covid: Who Will Lease the Massive White Elephants nearing completion on Lincoln Blvd?
After an Explosive 2020, Will the Demand to Live in Santa Monica Equal the Hugely Increased Supply of Apartments?
June 24, 2020
What will happen to the Massive White Elephant buildings nearing completion on Lincoln Blvd? Will young people earning $3000 a week at Google, Snapchat and Facebook line up to lease expensive NYC style high density apartments with freeway views?
It's an open question what will happen to rents locally. One view is that it's even more important now to live in a nice place, since you're going to be there all day.
An opposing view is now more than ever, it's okay to live anywhere and telecommute. Which opens up Baja California, the Oregon Coast, and the Carolinas equally.
A big question locally is: Who will want to move into the mammoth, high density, Manhattan style Mega big block apartments nearing completion at Lincoln and Colorado.
Only 12 months ago, the intersection featured a closed Denny’s and a demolished Norms. Now, high density block apartments with hundreds of units, are about to go online all at once. And they are demanding a premium. At least, the developers think you will pay a premium to live there.
“For fun, I went on the website of “The Catherine,” which is the new apartment building that just went up on Lincoln and the 10 freeway” writes Alice, one local mom.
“The cheapest one bedroom that I saw rents for $3800. Most units are close to $5000 a month. “Are they delusional? Seriously, in the middle of a pandemic, in a city that just got destroyed by looters. Across the street from a business that was completely ransacked (Fishers). Next to a major freeway (pollution) and a very noisy area 24/7. Who is going to rent these units?”
There is at least anecdotal evidence that the demand for apartments has slackened. There seem to be more for rent signs in 90405 and 90403, Santa Monica's highest density neighborhoods.
Many tenants are withholding rents, authorized to do so by emergency coronavirus orders. No three day notices may be served in Los Angeles County, and there is a moratorium on evictions.
This year rent increases for rent-controlled apartments in Santa Monica is 1.4%.The proposed rent adjustment, which will go into effect on the first of September, is slightly less than last year's 2% increase and $44 cap on increases.
As for the Catherine Apartments, rents start at just $4700 a month for a 720 square foot one bedroom apartment on Lincoln Blvd and the Freeway. Such a deal! Remember to ignore the homeless people you will encounter on your way to Vons.