Brandon Donnelly

Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

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Tag: los angeles

  • The Petra Cortright NFT Collection at One Delisle

    My two week photo blogging experiment has come to an end. We are now back in Toronto. France was incredible, and I thoroughly enjoyed practicing my French and messing up which nouns are masculine and feminine. Expect some follow-up posts in the coming week(s). I was jotting down notes throughout the trip.

    I must say that the experience of getting back to Canada was far easier than I was expecting. Besides having to run around to a few different places for our PCR tests (sante.fr gave us some addresses that wouldn’t take us), it was relatively painless.

    I am now swimming through my inbox (butterfly stroke kind of thing). There’s a lot to catch up on and a lot that I want to write about. But here’s something pretty special. Today I am excited to share that Slate Asset Management just announced an NFT digital art collection by Los Angeles-based artist Petra Cortright.

    The collection consists of 8 works of digital art that are exclusive to each of the 8 penthouse residences at One Delisle (1/1). We believe that this is one of if not the first example of this — NFTs being commissioned by a developer for future condominium residents.

    Since the beginning, we have wanted to make One Delisle a “project of firsts.” We wanted to create something remarkable and usually that means you have to do something for the first time. We are fortunate to have been able to partner with Studio Gang for both the architecture of the building and its interiors.

    The Petra Cortright NFT Collection is the next step in this commitment to new ideas. And on October 6th the team will be revealing both the One Delisle Penthouse Collection and hosting a one-time gallery viewing of the eight digital art pieces. If you would like to attend here in Toronto, please send an email to info@onedelisle.com.

    For more information about what all of this means (including a bit about NFTs), here’s the full press release from earlier today.

  • Paul Smith on being “childlike”

    British designer Paul Smith was recently interviewed by Monocle on Design about his recent collaboration with BMW and Mini. If you like Mini cars, you’ll probably like the episode. But he also raises two interesting points about his business and about how he approaches design.

    The first is that his business is a balancing act. In the front, he wants it to be pioneering, flashy, and self-indulgent. But in the back, he keeps the lights on by selling lots of navy blue suits and polo shirts. Both are important, because if you stop pioneering then you stop being relevant.

    The second point he makes is about how he approaches design. Paul Smith’s London studio is famously cluttered. He likes to collect a lot of stuff. Some might call it hoarding. But for him, the space helps him think laterally and also remain “childlike.” (Where we work apparently matters.)

    Children, as we know, are honest, curious, and free in a way that adults aren’t. They don’t have the same reference points and that can be very empowering. Forget the way that things are currently done and challenge yourself: “What if?” I like that a lot.

    To listen to the Monocle on Design episode, click here.

    Photo by Boris YUE on Unsplash

  • Rich people and single-family zoning

    This is a chart from Abundant Housing LA (a YIMBY group), via City Observatory, showing the relationship between median household income and single-family zoning across the 88 cities that make up L.A. County. On average, about 80% of the land in the County is zoned for single-family housing. This is also true for Los Angeles, which is not surprisingly its biggest city. What is pretty clear from this chart is that the richest areas tend to have a higher percentage of single-family homes. If you read Anthony Dedousis’ post, you’ll also see that the housing tends to be more expensive (makes sense) and that the homeownership rates are higher in these single-family areas. One obvious takeaway is that it shows you how clearly we are dividing our cities. Zoning is regulation. And here we are seeing some of the socioeconomic implications. But I’m curious if this relationship would be as strong in other cities around the world and at different scales (i.e. neighborhood levels). When it’s made available (not all cities have this much space), how universal is this pull toward single-family housing?

  • Plastic surgery, LA mega-mansions, and digital NFT art

    “Price is what you pay. Value is what you get.” -Warren Buffet

    According to the Wall Street Journal, there is a real estate trend underway in Los Angeles: Celebrity plastic surgeons are piling into the business of building over-the-top spec homes. (Spec means that they are built speculatively, without a buyer in place, and sold — hopefully — upon completion.)

    What is clear from this phenomenon is that there appears to be a bit of money to be made in the world of LA plastic surgery. What is also clear is that the market value for a 21,000 square foot mega-mansion in Los Angeles is basically who-the-hell-knows:

    The rush of new contemporary spec homes built in the Los Angeles area has put downward pressure on prices. While Dr. Nassif says he’s had significant interest in his home since listing it earlier this year, Dr. Kanodia recently slashed the asking price of his home to $99 million from $180 million. Developers like Nile Niami, known widely as the king of Los Angeles spec homes, handed the keys over to his lenders on at least one project and is facing default on others, The Wall Street Journal has reported.

    Is the market price $180 million? Is it $99 million? Or is it much less? Probably depends on which way the winds are blowing that day. At this snack bracket, you’re looking to harpoon a whale and there are only so many of those. But ultimately, the market price is whatever someone is willing to pay.

    One thing that is interesting to see in some of these homes — besides hidden DJ platforms on hydraulic lifts — is that NFT art displays are now starting to get incorporated into these new builds. Assuming that digital NFT art does continue to take off, which is still TBD, there is going to be an explosion of different display/gallery solutions.

    Perhaps these mega-mansions are a leading indicator for that trend.

  • Net domestic migration is still pretty suburban

    For years, the data has been clear. Many Americans are moving from expensive cities, like Los Angeles, to less expensive metropolitan areas like Dallas-Fort Worth.

    But Wendell Cox’s recent article over at New Geography is a good reminder that these data sets can be limited. The US Census Bureau currently tracks domestic migration at the county level only. This can be a bit of a problem as counties vary dramatically in terms of geography and population.

    The New York metropolitan area, for example, is comprised of 25 different counties averaging about 750,000 residents. The Los Angeles metropolitan area, on the other hand, is compromised of two counties averaging about 6.6 million residents.

    These sorts of nuances become important when you’re trying to figure out things like whether people are moving to/from urban cores or the suburbs. Case in point: The San Diego metro area is compromised of a single county. When people move there, the data says nothing about how urban or suburban they might be.

    Dallas-Fort Worth is a lot easier to read. Since 2010, it has had the largest net domestic migration of any metro area in the US: +443,000 residents. But county data reveals that it is entirely suburban. The core (Dallas County) actually lost 57,000 people from 2010 to 2019. And this is not unique to the Dallas-Fort Worth area.

    Photo by Gabriel Tovar on Unsplash

  • The Koblick House by Richard Neutra

    I came across the above photo this morning. If you can’t see it, click here. It’s a photo of the Koblick House in Los Angeles designed by Richard Neutra and Gregory Ain for art professor Harry Koblick. Built into the hills of Silver Lake in 1937, the house is a three-storey duplex with about 1,620 square feet according to some sources. (I couldn’t find any plans or drawings, but I’d really like to see the section.) The upper unit has 2 bedrooms and 1 bath. And the lower unit has 1 bedroom and 1 bath.

    Richard Neutra was a prolific modernist and designed numerous “international style” buildings, like the Koblick House. His work was included in the seminal 1932 MoMA (New York) exhibition on modern architecture, which was an important moment for modernism in the United States. It helped to import the international style from Europe at a time when exhibitions did things like that. It is perhaps easy to forget that ideas didn’t spread as quickly around the world back then.

    I love the simplicity of this house. The double car garage that services the two units. The side stair that leads to the front door. And the two large terraces that probably look out over some kind of landscape. Over 80 years later and it still feels contemporary. Perhaps some of you will be equally inspired by this archive photo.

  • Los Angeles adopts “standard plan program” to encourage ADU construction

    The city of Los Angeles has taken an interesting approach to accessory dwelling units (what we generally call laneway or garden suites here in Toronto). In an effort to streamline the approvals process and bolster the supply of housing in the city, they’ve gone out and pre-approved a series of “standard plans” that you can quickly implement on your property. The idea here is that all of their approved plans have already been checked for compliance with the various building codes. So those reviews don’t need to happen before a permit can be issued (though the building department would still need to review any site-specific conditions).

    What that means is that if you’re in the market for, say, a one-storey, one-bedroom ADU at around 450 sf, you can simply scroll through their list and find the one you like the most. Here is one that fits this criteria by Design, Bitches (I just wanted to mention this firm name). The potential downside of this approach is that it could encourage less architectural experimentation. On the flipside, many of their approved designs are really nice and so maybe it’s a boon for those who are lacking in good taste. Either way, if you want to encourage more of something, the way to do that is to reduce friction.

    To start to give you a sense of how meaningful this could become, the city of Los Angeles received 1,980 applications for ADU construction back in 2017. This is the year in which the state changed its regulations so that ADUs were no longer prohibited in some municipalities (I don’t know all of the specifics truthfully). Last year, LA saw 5,374 applications and I suspect the number will be even higher this year. Should other cities look at pre-approving certain designs? And could this be an approach used for even larger building typologies? Speed is good.

  • The bank robbery capital of the world

    Between 1985 and 1995, Los Angeles’ retail bank branches were robbed some 17,106 times. In 1992, which was the the city’s worst year for robberies, the number was 2,641. This roughly translated into about one bank robbery every 45 minutes of each banking day. All of this, according to this CrimeReads piece by Peter Houlahan, gave Los Angeles the dubious title of “The Bank Robbery Capital of the World” during this time period.

    So what caused this? Well according to Peter it was facilitated by two phenomenons. One is indigenous to Los Angeles and the other was a result of the party scene that started to emerge in the city in the late 1970s during the disco era. Peter argues that this spike in robberies was the result of (1) the city’s sprawling car-oriented urban landscape and (2) its widespread use of cocaine at this time.

    The former allowed robbers to quickly flee the scene (many banks were located near highway on-ramps) and the latter is what seemed to motivate people to actually do it. They needed a way to fund their addictions. By the early 1990s, it was estimated that up to 85% of all bank robbers in Los Angeles were suffering from some sort of drug addiction, and the surveillance photos seemed to reinforce this. Repeat offenders were noted as looking progressively worse.

    But what’s perhaps most interesting to this blog audience is point number one. To what extend did the built form of the city actually facilitate this kind of behavior? Surely Los Angeles wasn’t the only place that started enjoying disco music, and some other things. And so did bank robberies, in a way, get coupled to the city’s labyrinthian freeway network? Was this the cover that robbers needed to make them feel like they weren’t going to get caught?

    For Peter’s full story, click here.

    Photo by Dillon Shook on Unsplash

  • Airbnb’s S-1 is now public

    Airbnb’s IPO documents recently went public.

    Not surprisingly, their business as a travel company has been heavily impacted by COVID-19. Last year, the platform saw 326.9 million nights and experiences booked, with 251.1 million being booked in the first nine months of 2019. This year, nights and experiences are down to 146.9 million for this same nine month period. Revenue is correspondingly down from $3.7 billion for the first nine months of 2019, to $2.5 billion for the first nine months of this year.

    But what is also clear from their data is that people still really want to travel and have new experiences. As soon as April passed and the Northern Hemisphere entered the normally busy Q3 travel season, domestic travel began to quickly ramp back up. For many, this likely took the place of international travel. See above chart.

    Of greater concern might be all of the regulation that now surrounds short-term rentals. As of October 2019, about 70% of the platform’s top 200 cities (by revenue) had some form of regulation impacting short-term rentals. But at the same time, no one city accounts for more than 2.5% of the platform’s revenue. So there’s strong geographic diversification.

    If you’d like to take a look at the company’s S-1, you can do that over here. And for those of you who might be curious, these are Airbnb’s top 10 cities based on revenue:

    1. London
    2. New York City
    3. Paris
    4. Los Angeles
    5. Rome
    6. Barcelona
    7. Tokyo
    8. Toronto
    9. San Diego
    10. Lisbon

  • La ville du quart d’heure, but also the value of centralization

    These days, everybody seems to be talking about the 15-minute city — Bloomberg, Treehugger, the Financial Times, as well as countless others. While not a new concept, it is a moniker that is easier for most people to digest. COVID-19 has also created the right backdrop for the moment that it is currently enjoying.

    The 15-minute city is a polycentric and somewhat decentralized approach to urbanism. It is about encouraging and creating multiple centers of urban activity near where people live. The idea being that everybody should have most of their essential services within a 15-minute walk of their home. Put even more simply, it’s about creating an urban environment where people can live locally.

    The benefits to this are numerous. It encourages more compact forms of development, which in turn encourages people to rely more heavily on active modes of transportation such as walking and cycling. The result is less commuting, less carbon emissions, more time, and likely better health outcomes given the reliance on active mobility.

    Indeed, living in a walkable urban community is something that I personally put a huge value on. If I can’t walk out of my home to go grab a coffee and something to eat, it’s probably not the neighborhood for me. But at the same time, I don’t think we can ignore the fact that there are powerful centralizing forces present within our cities.

    As Natalie Whittle points out in this FT article from the summer, new technologies — from the telegraph to the internet — have always elicited predictions that humans would now flee cities and move to the countryside. While it is true that there are other technologies — everything from the streetcar to the automobile — that have allowed us to decentralize to a greater extent, most of us are all still bound to cities.

    In fact, you could argue that the opposite of decentralization has played out. As we have transitioned to a knowledge and information economy, the returns to being embedded within cities and within a particular place have only become greater.

    Take for example the phenomenon of “collab houses” that has been playing out in Los Angeles for some time now, including during this pandemic. Collab houses are typically LA mansions where clusters of young people come and live together in order to create content for platforms like YouTube and TikTok. It’s like a big dorm for creators. And supposedly the biggest one is Hype House.

    What’s fascinating to me about this phenomenon is that it reinforces two things. One, if you want to be rich and famous (emphasis on famous), Los Angeles is seemingly still an important place to be. And two, if you really want to be at the top of your game, it’s apparently not enough to be in the same city as other likeminded individuals; you also need to be under the same roof, bouncing ideas around and pushing one another.

    So what does this all mean? Well, maybe this time is different and we are all currently living through a reorganization of how we will live, work and play. Or, maybe this time isn’t all that different. And the 15-minute city, while an important goal, won’t be the be-all and end-all of modern city building.

    Photo by Lukas Geck on Unsplash