I, for one, welcome our new mixed-use overlords.
You’d think I’d be pissed about a developer coming into Silver Lake and building 300+ rental units. After all, the rules of supply and demand would seem to indicate that this new competition will drive down the rents on my units in the area. But I’m thrilled they’re coming. Why?
Well, first, I obviously have a general preference for dense, in-fill development. Sunset Junction is a human-sized, walkable neighborhood. Putting more rental units there will mean more customers for the amazing stores, restaurants, coffee shops and bars that are already thriving in the neighborhood.
Second, the structures these buildings are replacing are mostly horrible. Yeah, they ripped down the building that formerly housed a noted gay bookstore. And I kind of like 4100 Bar (which is going to be a casualty of the development). But I can tell you with great certainty that no one is going to lament the demise of the Bates Hotel. Overall, I can’t see how these new building won’t end up being an upgrade.
I have a third reason that, I admit, is a bit selfish. You see, the new units are going to rent for tons of money. Right now, the developers are forecasting $2,000 / month for one bedroom apartments. That’s a hell of a lot more expensive than even my highest-priced one beds. So my units are going to look like bargains by comparison.
Nothing like a little price-anchoring by the competition to make sales a bit easier, right?