A population boom and new development money in Downtown Los Angeles lead to a dramatic increase in the supply pipeline. Recent hotel transactions have been geared towards redevelopment and repositioning.
Downtown Los Angeles (DTLA) is the central business district of the city of Los Angeles and covers the area bounded by Interstate 110, Interstate 10, and the Los Angeles River. DTLA is undergoing a renaissance of new commercial and residential developments. The past 16 years have seen the landscape change significantly with the addition of such attractions as the Staples Center, Walt Disney Concert Hall, and the $3-billion LA Live entertainment complex, all key projects that have helped establish DTLA as a popular destination.
DTLA population has boomed in that time as well. Besides 32 million ft2 of office space, the number of residential units has tripled from 11,500 in 1999 to 34,000 in 2014; an additional 7,500 units are under construction and 14,000 more units are planned. Approximately $19.2 billion has been invested in DTLA since 1999. Over 700 new restaurants, bars/lounges, night clubs, and retail establishments have opened in the past 7 years, with an additional 1.2 million ft2 of retail space under construction.
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