Experience

A Case Study

Solair

Solair is a 22-story high-rise building that includes residential condominiums, live/work lofts and ultra-luxury penthouse units located at the historic intersection of Wilshire and Western in the Los Angeles Wilshire Center / Koreatown neighborhood. Built in 2008 and 2009, Solair was initially a casualty of the housing crisis as its ownership transferred from the original developer (KOAR) to their lender (Corus Bank) and then finally to ST Residential. Then considered infamous due to its well-publicized issues, including the ownership transitions, an electrical fire, incomplete construction, poor community relations, FNMA lending restrictions and the lack of sales, ST Residential, GH Edmunds & Associates, and the sales and marketing team were tasked with the timely and profitable sellout of a building having monthly carry costs in the hundreds of thousands of dollars that required a major public relations turn-around.

The team utilized a variety of marketing tactics, including various buyer, broker, homeowner, and community events, ongoing broker outreach, precisely targeted advertising and public relations along with an unwavering dedication to honesty, transparency, and delivery on promises made to each individual engaged with the project at any level.

Through these efforts, the team was able to earn back the trust and support of the local community and leverage those gains into sales successes which resulted in an expeditious sellout achieved alongside ongoing price increases and the setting of sales price and $/sq.ft. price records for Koreatown at a time when the greater market was still experiencing significant price decreases. Ultimately, Solair was closed out three months earlier than the ST’s pro forma (11% faster) at an overall value approximately 10% above ST’s pro forma.

The sales team earned both regional and national recognition including one newly-minted agent being awarded Sales Rookie of the Year by the National Association of Home Builders.

Comparison of prices of attached resale closings in Koreatown*

August 1, 2011 to November 1, 2013

The Solair vs. Market Resales: 77% over market

Pricing was consistently increased over the course of sell out while also exceeding the absorption goals set by the client, ST Residential. The 10 penthouse units at Solair are not shown on this graph, but their closed prices of $1.8m - $2.3m constitute the 10 most expensive condos ever sold in Koreatown up through date of sale (next highest comps were approximately $1.49m from 1Q11).

* Homes under 1,000 sq.ft., over 2,800 sq.ft., and over $1,200,000 not shown on graph