Wednesday, July 15, 2009

Whither the "Industry Crowd"?

An Anon commented on one of the recent posts:

"A major economic driver for West Hollywood and its environs is the entertainment industry. If the recent LA Times article on the subject is to be believed, the local entertainment industry is under serious pressure from distant (cheaper) competition. Totally aside from the inevitable deflation of the housing bubble there simply will not be the economic support for 1.5 million dollar apartments, nice size or not."

The story is here, for those that didn't see it.

A couple of things:

1) The story focuses on small "support industry" players, not the upper-echelon executives

2) The media has its tried-and-true "death knells" for various industries, and I'm sure the movie/TV production business' death has been called numerous times in the past.

That said, there's no doubt the economic conditions are weighing on all sectors (unless maybe you work at Goldman Sachs).

Again, LA is a big city. I'm not naive enough to think that there aren't people with a LOT of money among the masses.

The question of the day - have the high-paying, high-spending days in "the industry", whose participants I think a condo like this one (large "bachelor pad" style) is targeting, dried up? Peak Manhattan pricing for a condo in LA (OK, so it gets a premium because you can walk to the Roxy and the new Boa)?


9255 Doheny Rd #2203 (90069)
$1,495,000 ($1,132/ft)
1BR / 1.5BA
1,321 sq ft

Rare offering in the highly coveted Sierra Towers, one of LA's best full-service bldgs. Ideal 22nd-floor location, w/large deck to take in the stunning views. Updated chef's kitchen, dining area, and spacious LR, all adorned w/beautiful hardwood flrs. Oversized master suite w/abundantly spacious closet helps this stunning unit shine. Hand the keys to the valet & stroll over to the Sunset Strip. Top of the line building includes pool, newly updated gym, concierge & 24-hour security & valet.

Sold: 4/02 - $512,500

Sold: 9/03 - $700,000

Listed: 5/8/09 - $1,850,000

Reduced: 5/21/09

3 comments:

Anonymous said...

I'm the anon who posted about the LA Times article. IMO it's the small support industries who matter the most to West Hollywood. In fact some of them are located within the boundaries of the city. These support businesses are the ones whose employees choose West Hollywood. The upper echelon executives of the big companies do not live here; they live in Santa Monica, Bel Air and Malibu.

The price per square foot of your new example is laughable. Presumably this place aims at the not-terribly-bright young entertainer with his or her first major wad of cash burning a hole. I think both West Hollywood and the Cahuenga/Vine core of Hollywood will continue to lure these folks so long as the Sunset and Cahuenga club scenes survive. But, yes, the price is silly.

Bubblewatcher said...

Something happened with the Sierra Towers over the past several years -- it went from being a tired, sixties-era highrise where people went to visit Grandma to a hot, hip, mid-Century haven for the Lindsay Lohans and Matthew Perrys of the world. Not sure if that will change. I seem to recall an article in the LA Times that christened it as such a while back.

Hence the price premium...Oh, and you forgot the Hamlet just a block down the street, too :)

Anonymous said...

LOL, 1.8 million.