Kennedy Wilson: Plenty of “Room for Hope” in South Park
Kennedy Wilson is a major presence in the South Park real estate market as well as the global markets. Their portfolio includes all aspects of real estate from commercial to condos/apartments and investment management. Justin Weiss of Kennedy Wilson is a fixture in the neighborhood. Weiss is known for his expertise in the downtown market. He joined Kennedy Wilson in 2014 to lead its downtown platform with partner Lee Shapiro. Recently I spoke with Justin to get his insights regarding the real estate market and anything newsworthy in our area.
The new business on the horizon (although maybe two years away) that interested me the most was Erewhon Organic Market’s purchase of property on Olympic between Hill and Broadway. Erewhon food markets deliver organic, ethically sourced foods who believe “we’re more than a grocery story. We’re a community.” Erewhon has 14 other locations in LA including the Silver Lake market closest to South Park.
Other new businesses coming soon to the neighborhood are Awesome Coffee at Grand and 12th which plans to stay open until 10 pm and possibly later offering an alternative to bar drinks, California Wine Exchange on 11th at Hope in the Met Lofts building which will include a restaurant and sale of wine by the bottle, and a high-end convenience store at the new residential building, Olympic + Hill.
A new concept space at the penthouse in the Moxy hotel is a 7,000 are foot high-level karaoke spot with 12 rooms and a menu that rivals top restaurants. The space is on the 33rd floor and has a 2,700 square foot patio, bar, and overlooks the Hollywood sign. This same concept exists in Las Vegas and the South Bay area.
If Justin could wield a magic wand, he would solve the Oceanwide problem. But he believes it will be sold and will be built. There are a couple of interested buyers. If interest rates drop, that will be helpful for the Oceanwide project. Currently, Oceanwide is an eye sore, reflects badly on downtown LA, is a sign of urban decay, and, in general, hurts everything.
The rental market in South Park is better – 93%-95% occupancy – compared to other areas of downtown (90%-91% occupancy). The housing shortage helps the rental market. The condo market on the other hand is “soft.” Justin sites public safety and homeless issues as stifling the nightlife in the neighborhood and downtown.
Despite all this, Justin has hope for South Park and downtown. The Olympics and Paralympics, All-Star game, US Women’s Open, FIFA World Cup, Super Bowl LXI, and even more events further out will allow LA and downtown to shine. Along with the expansion of the LA Convention Center and the final development of Oceanwide, hope is on the way for South Park, downtown, and all of LA. Justin says so!
By Debra Shrout