For a while it looked like the best thing to bring to a neighborhood was a new Whole Foods grocery store. One study showed that homes in these neighborhoods would appreciate at a much faster rate than if they were near a Trader Joe’s (and both were better than a Starbucks). Another sign a neighborhood is on the cusp of revitalization is when the yoga studios start vying for space with the arthouses. Usually it is not long after that the expensive coffee shops and cupcake stores start showing up at street level. But now that so many states have passed laws favorable to the marijuana movement, the next big thing to bring a neighborhood back from the brink just might be the increasing number of organizations that work in the industry.
Downtown Los Angeles could be the first case study to see this phenomenon in action. Next month a 7-story building in the heart of LA’s Jewelry District will open up, filled with tenants who all have cannabis somewhere in their job description. Called the Green Street Building in reference to their anchor tenant (the branding specialists Green St. Agency that works solely with clients in the marijuana industry) the entire 67,000 square feet will house everything from co-working spaces to an art gallery, dispensary, restaurant, law firm, luxury spa and lounge. Real estate investment company Bow West Capital purchased the property last year for a reported $14 million. Once open it will be the largest retail space dedicated to cannabis in the U.S.
“The buildings in [the Jewelry District] have not received the proper upkeep, allowing for low sale prices of the buildings but also requiring full renovations,” said lead architect behind the project, Matthew Rosenberg of M-Rad, Inc. “With the prosperity and funding in the cannabis industry on the rise, this is a perfect combination for this exciting new industry to make this area their home, with Green St. being the catalyst.”
While there are not many residential properties for sale within the Jewelry District itself, data from Realtor.com shows the few that are on the market have a median asking price of $525,000. Surrounding neighborhoods vary quite a bit with the neighborhood of Florence-Graham about five miles away to the southwest seeing median list prices of $440,000 compared to Greater Wilshire a few miles to the northeast seeing median list prices of $1.7 million.
To Read The Rest Of This Article By Amy Dobson on Forbes
Published: November 27, 2018
Founder & Interim Editor of L.A. Cannabis News