I recently participated in a discussion hosted by CSQ Join Rams COO Kevin Demoff and former California Deputy Treasurer Jovan Agee to discuss the future of Los Angeles real estate.
I expected to offer a variety of perspectives on current development challenges in Los Angeles and California, but there was one thing we all agreed on: The current real estate climate in Los Angeles and many other cities across California is negatively impacting the construction of the state-mandated 2.5 million housing units. By 2030, 1 million of these homes will be allocated to low-income households. What happens if these obligations are not met? Among other things, the homelessness crisis will greatly intensify.
From permitting and entitlements to prevailing wages and supply costs, current processes and subsequent roadblocks often result in increased costs and delays in development schedules. So what does it take to streamline the process of meeting government mandates while incentivizing developers? It starts with the individual.
A great example is James Butts, Mayor of Inglewood, California. More than a decade ago, Inglewood was notorious for crime and a depressed economy. Under Mayor Butts' vision, Inglewood is now a thriving community home to three professional sports teams (NFL teams Rams and Chargers, NBA Clippers), business growth, infrastructure improvements, and revitalization. We are actively promoting the Mayor Butts has also reduced his debt while simultaneously creating wealth for his citizens.recent articles Los Angeles Times He noted that Inglewood has record-low crime rates, unemployment has fallen from 17.5% to 4.7%, and real estate values have increased by more than 200%.
While the Rams were completing SoFi Stadium, Forbix acquired an office building in Inglewood within walking distance of the new state-of-the-art arena and is currently converting the property into a building with 65 residential units, a fitness center, and a rooftop. It is being converted into a mixed-use project. Entertainment spaces, restaurants and coffee shops. Essentially, our project is a microcosm of his SoFi Stadium. By creating homes with access to dining, social and recreational activities, the living spaces we create become desirable communities in their own right.
While professional sports teams typically spend billions of dollars to promote development almost everywhere, small and medium-sized developers are looking to move forward in Inglewood, where the political/administrative infrastructure supports expediting the process. You can reap great benefits when working with development-friendly cities like . What Mayor Butts has done can be done in other cities, large and small, across the state.
Developers, including Forbix, enjoy executing projects that benefit communities by providing housing and supporting businesses, but there is always a final consideration. This means that the finances and time frame must be reasonable. Rising interest rates, rising costs, and other economic factors require dedicated efforts to make the necessary changes to streamline the A to Z of real estate development. The good news is he only needs one to get the ball rolling.
Emil Khodorkovsky started his career at a mortgage company in 2001 and quickly rose to become a partner in the company. During his tenure, he began investing in real estate through private trust deeds, disbursed and distressed debt acquisitions, and real estate.
