Construction on Upscale Apartments in NoHo Begins After 3-Year Wait

The two-block site that stood vacant at 5031 Fair Avenue is moving forward with construction of a 308-unit upscale apartment building, which the builder says will feature a good deal green space, both inside and outside of the property.

“We win a lot of awards for our landscaping,” said Drew Colquitt, West Coast managing director for Alliance Residential. “We get paid for building lushly landscaped communities.”

Colquitt promises the new development will look like La Belle at Hollywood Tower  and will have features similar to a spa or retreat center.

Tenants are likely to include people who would have traditionally bought homes but are waiting for the current purchasing climate to change.

“We’re seeing a negative psychological slant toward homeownership as a result of the housing bust we've seen over the last 3 years,” said Paul Habibi, professor of real estate at the UCLA Anderson School of Management and an investor/developer.

Developers are building more high-end apartments rather than condos, Habibi said. People who would have been buyers in the past are “waiting to see if the market is at a bottom before buying.” A lack of financing options for buyers has also contributed to the trend toward renting versus buying.

The North Hollywood area continues to attract upscale apartments, evidenced by projects at   and the that is planned replace the Commonwealth Savings and Loan Building nearby on Lankershim Avenue.

Projects like the one at Fair Avenue “tend to have a positive impact for surrounding communities, as well as a positive effect on local businesses,” Habibi said.

However, with the large number of vacant units currently in the area, businesses won’t see an uptick unless the units get rented.

Some local residents are concerned about the parking impact.

“Every street is crammed,” said Taffy Morgan. “Where are they going to park?”

But Habibi estimated that the number of parking spaces, which were approved by the city, would meet the needs of residents.

The six-story building will include 11 studios, 140 one-bedrooms, 147 two-bedrooms and 10 three-bedrooms along with 565 underground parking spaces.

Colquitt stressed that Prudential’s goal is to be a good neighbor during the construction process, with the project manager going out to meet area residents. He said their goal seems to be working. When a thief attempted to burglarize steel pipes from the property, a neighbor called the police and the thief was apprehended.

The new construction is set between apartments, condominiums and single-family homes on a lot north of Camarillo Street, west of Lankershim Boulevard, south of Magnolia Boulevard and east of Tujunga Avenue.

The owner/developer is Prudential Real Estate. The original developer went bankrupt, leaving the property in limbo for the past three years and local residents frustrated about the expansive empty lot in their neighborhood.

Many developers found themselves with properties in the works before market forces took a drastic downward turn.

“You have to finish them up and minimize the beating you’re going to take until you get to a better day,” Habibi said.

The project is scheduled for completion in late 2013.