Here in Southern California, Google has made a significant purchase of 12 acres of empty land in Playa Vista, CA for $120MM. You can read about this move in a Dec '14 LA Times article here: http://www.latimes.com/business/realestate/la-fi-p...
Of particular importance: "Google's land purchase 'brands Playa Vista as the tech and innovation capital of Los Angeles,' councilman says."
I'm interested in reading from any professional investors out there what this could mean for appreciation in the surrounding areas, namely Westchester, Playa Del Rey, MDR, and El Segundo. As young techies continue to relocate and propagate the expansion of the Silicon Beach movement out here, could this landmark purchase by Google deliver huge prospects for local investors?
@Angelo Evangelatos I think knowing your marketing and buying 6 months ago could have been great, in the mean time you might want to look into housing those new workers.
I don't know the current numbers but 1Q of 2014 vs 1Q of 2013 Playa Vista had "negative appreciation". Basically the median prices went down 13% year on year. Great place to buy if you ask me!
@Ewa Reza Interesting! Not to mention LA County as a whole is overinflated and is deterring demand. By the time construction actually begins and new comps hit the area, properties purchased around this time could ride a soaring wave of appreciation in 3-5 years. At least this is the prospect I'm trying to assess by reaching out to more seasoned professionals operating in the area.
@Angelo Evangelatos I've been watching Westchester since this announent last year. Price shave already started to rise and will continue. Santa Monica is actually against the expansion being generated by all the tech companies so the tech workers are moving further south to the Playa area.
I couldn't find the article but I think it was on Curbed LA.
My wife works up at Apple once a year and is charged $3,000 a month for what is very average accommodation. I would look at doing the same here and renting to short-medium term tech contractors.
Here's that article.
Thanks for sharing all this. I am curious to see the growth trend in Playa Vista in the next couple of years
I purchased my primary home in Mar Vista in 2012. There were talks of Playa Vista building up but it was more about The Runway (Playa Vista Downtown plans) with the retail stores and movie theater. I was thrilled when they began building this massive plan, and I can only imagine the value that Google will now bring.
However, there is a HUGE downside though. The majority of the construction workers are not local to the Playa Vista area, thus making them commute. The city is realizing that there is a HUGE lack in public transportation to this area. This article states this as Playa is a "Public Transportation Dead Zone". It mentions Google's recent purchase, but also states that Yahoo is renting out some space in Playa as well. Check this out: LA's Hottest Office Hub is Public Transportation Dead Zone
@Jon Huber it's definitely interesting times ahead.
My wife and I were hoping our condo in Santa Monica would get caught up in the tech boom and have a significant rise in appreciation, but as stated in the article SM developers aren't helping us out.
I'll be following it closely for sure.
@Shane Willcox you are still in a great position with the rail system being put in place. And as a result of the ocean and proximity to LAX, Santa Monica will always be more attractive.
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