Greater Los Angeles Area Getting Commercial Real Estate Boost with Return of N.F.L.’s Rams
Good news for Inglewood, CA — a city of 110,000 people located 10 minutes from downtown Los Angeles — the NFL’s Rams football team is making this city their new home. The owner of the Rams, E. Stanley Kroenke, is developing the $2 billion stadium without asking for any public funding. Looking at the bigger picture, the greater Los Angeles area is getting a boost in commercial real estate with the return of the Rams football team.
According to the New York Times online publication, in an article written by Lauren Herstik on May 17, 2016, called “Inglewood, Calif., Pins Hopes for Commercial Revival on N.F.L.’s Rams”, the stadium is going to seat 80,000 people and the project will include an entertainment complex nearby.
The entertainment complex project is called Hollywood Park, and according to the article will:
“…include about 900,000 square feet of retail space, a hotel, 2,500 residential units and 25 acres of public parks, all on the site of the former Hollywood Park Racetrack. Plans include almost 800,000 square feet of office space.”
The Impact on the Community
Commercial real estate values have already started to rise in the strategically located project area. The surrounding areas are getting ready for the influx of money, businesses, and services, which are arriving to facilitate the new destination and undertaking. The impact is a positive one, and welcomed by the semi-depressed city of Inglewood, which is made up of mostly lower-income to middle class residents.
Many joint-developments have already begun to take place by different investors, including a 6,000-seat performing arts theater. Already a 60 acre parcel adjacent to Hollywood park has been used since 2014 to host concerts.
Logistical plans to unite the area with the nearby Los Angeles Airport, and being in a strategic location near neighborhoods like the Playa Vista development – are making this stadium project with its’ joint-developments, a real destination in the greater Los Angeles area. This in turn, is upping the overall real estate market value, and the giving businesses the possibility to invest into the valuable commercial real estate properties in the area.
According to the mayor of Inglewood: James T. Butts Jr, “This development adds a dimension to the city that it has never had before.” A real estate expert involved named Bob Healey explains: “The stadium reinforces the idea that this is going to be a destination…It doesn’t take a master developer to figure it out: This place has a lot of potential.”
This is promising news to the commercial real estate market in the greater Los Angeles area. Although a football stadium is only used around 10 times a year, the joint-developments and projects are creating an immense destination point, which will be hard to ignore in the Southern California area.
The owner is funding the entire stadium project himself without any pubic assistance, which is good news for the city of Inglewood. The taxes and indirect compensation the city will derive, will go far in helping a rebounding economy in a predominantly lower-income city. And looking at the larger perspective, this gives hope and a big boost to the commercial real estate market within the greater Los Angeles area.
APPA Real Estate is aware of this recent commercial real estate development, as well as others in the greater Los Angeles area. We are a firm formed in 2013 to acquire, finance, renovate/develop, manage and dispose of commercial real estate opportunities that yield superior risk adjusted returns.
Through our asset management processes and management practices, we’ve been helping investors and commercial real-estate owners in the Southern California market find solutions in investment and management strategies. If interested in learning more, please contact us today.