The New Chinatown Has Arrived

Blossom Plaza has 237 apartment units with 53 low-income units.

LOS ANGELES—Chinatown has officially joined the new Downtown Los Angeles. The market started to receive developer attention a few years ago, and is now seeing its first mixed-use project open its doors. Blossom Plaza, a $100-million mixed-use complex from Forest City , has officially opened its doors. The five-story property has 237 apartment units, including 53 low-income units, retail space and a three-level parking garage. The property also sits directly on a Metro station, giving it extremely close proximity to public transit. Chinatown is one of the last neighborhoods in the downtown market to be impacted by the renaissance. “As land around the Staples Center and the Downtown core gets ever more expensive, developers are beginning to branch out into neighboring communities that are adjacent to the Downtown core,” Mark Tarczynski , an EVP at Colliers International and a Downtown Los Angeles market expert who was not involved in the project, tells GlobeSt.com. “The land is cheaper and these developers are building a similar product type at a lower entry-level cost. They are able to then deliver a quality product at an arguably less expensive rent.” The developer and contractor, Benchmark Contractors , a division of Morley Builders , did not respond to several requests for comment. Blossom Plaza, however, isn’t the first project to open in the burgeoning neighborhood. Equity Residential opened Jia Apartments, a $93-million, 280-unit apartment complex, in 2014. The project is fully amenitized, but does not have a retail or commercial component. Tarczynski says that, as a result, land values are increasing in the Chinatown neighborhood and in the areas directly north of Chinatown. While he doesn’t expect the market to hit $1,000 per square foot for land, like we saw in South Park, the increased demand is putting pressure on prices. We are starting to see a new Chinatown take shape as these developments open, but that doesn’t mean the market will feel exactly like South Park. “These neighborhoods create their own identity. Chinatown has its own identity, and the developer is going to tailor its project to the neighborhood,” adds Tarczynski. “Chinatown became popular four or five years ago when the Arts Loft Residences figured out that it was getting more expensive to live in the Arts District, and the whole art community moved to Chinatown. There is a thriving arts scene there that is interesting. They are very creative and entrepreneurial people, and crowds tend to follow them. I think the next step in Chinatown development.” Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What’s driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.