A large LA apartment project is being planned for the downtown area. Investors reportedly will start in on the project in a few months. This is predicted to be one of the largest apartments going up in the California area. It brings a fresh outlook on an improved economy.
City approval has been granted to Sonny Astani, Beverly Hills developer, to construct a 700 unit building out of steel and glass. It will cover a full city block with, in addition to the 700 apartment units, a grocery store and space to rent out to other retail enterprises on the first floor.
This $300 million dollar structure will be topped with a pool that is 40 feet in size on the roof. Astani will not participate in the construction of this building. It requires an intricate structural engineering firm to do the designing.
The land alone was purchased for $63 million by a Colorado based investment firm. Considering the increase in rents, Southern California is the prime location for a rental property of this magnitude.
There is a vibrant market for apartment rentals, according to one leading real estate broker. Astani is responsible for building the Concerto at a cost of $260 million. The towering 30 story condominium is within blocks of the newly planned structure.
He has since sold his interest in that building. There was a complicated legal situation between Astani and the Starwood Group, a hedge fund. There are reports that federal regulators took control of the firm that loaned the money for the project to Astani.
In a related report, California landlords can now legally prohibit smoking in the renter’s apartments. This is a matter for each landlord to decide. Many will not impose it, considering it an intrusion of privacy. Instead, there may be a system of smoking and non-smoking floors.
This is a rule that can be imposed, but not every landlord is required to do so. Not everyone worries about second hand smoke coming from a neighboring unit.
Landlords have double expenses having a smoker’s apartment repainted as they pay for a non-smoker’s apartment to be freshened for each new tenant. Therefore, many welcome the new legislation and plan a smoke-free environment in their buildings.