The benefits are undeniable—investing in commercial space amidst up-and-coming neighborhoods means big time pay off in the future.
Partners Trust’s commercial team is always on the pulse of LA enclaves to keep an eye on and, in recent years, they’ve guided clients to sound investments in rising East and South LA neighborhoods like Highland Park and Inglewood. So the question on everyone’s lips is, what’s next?
Boyle Heights, says Dario Svidler, one of Partners Trust’s founding Commercial Associates. Here’s why.
Considering close proximity to just about everything via the 101 and the 10, the presence of the metro gold line and the walkability of the neighborhood, Boyle Heights is indisputably convenient, Svidler says. Just east of Downtown LA’s Arts District, the city already gets spillover from tenants that can’t afford to live there. And as prices Downtown go up, this means more young professionals will be forced out to seek cheaper options, landing them in surrounding neighborhoods and creating a demand there for the lifestyle they want.
Furthermore, Boyle Heights currently offers large spaces at low costs, which tend to be sniffed out by artists seeking adequate space to create, Svidler says. Commerce follows demand, so it likely won’t be long before we see hip coffee shops, retail spaces and eateries making their way into the city surrounding the arts culture. The arts also tend to accelerate gentrification as they add an artistic “coolness” to grungy areas that investors typically wouldn’t find appealing. So as the arts community grows stronger in this neighborhood, the area will likely become more desirable.
Svidler also recognizes a heavy presence of historically significant, classic structures in Boyle Heights. “Adaptive reuse of some of these structures is bound to change the scope of the area,” he said. Take, for example, the Boyle Hotel. Used over the years as a hotel and community center, the nearly 130-year-old building was restored in 2012 and repurposed as a combination of affordable housing and commercial spaces.
Simply put, price per square foot and price per door is low right now in Boyle Heights, Svidler says. Even as demand grows stronger in the area, prices will remain attractive until the landscape changes and the neighborhood gains more attention from the residential community.
For more information on investing in Boyle Heights, contact Commercial Associate Partner Dario Svidler.
Image courtesy of Preservation Action