Buying Historic Downtown Los Angeles Lofts |The Mills Act
When buying Historic Downtown Los Angeles Lofts, The Mills Act is something that one should be aware of. The Downtown loft market continues to expand. Seems like buyers tend to be drawn to the historic buildings due to the architectural character. Area’s like The Old Bank District, Historic Core and The Arts District are leading the charge in these iconic giants. Most of these buildings originate from the late 1800’s and early 1900’s. As a result of a concerted effort aligned with the re-urbanization of America’s major cities, top developers, architects and contractors from around the world flooded into Downtown. It was around 2001 when the redevelopment really took off.
The Mills Act
Because this abatement was one of the single most important economic incentive program in California. It benefited the restoration and preservation of qualified historic buildings by private property owners. It’s contracts are between the property owner and the local government granting a significant annual tax abatement. Certainly a nice little perk for purchasing “Historic”. Typically applied for by the developer early on before sales kick off. This way the benefit could be used as a marketing tool. However, in some case’s like downtown’s El Dorado, the abatement was granted almost 10 years after the historic building came to market.
Enacted in 1972, The Mills Act legislation granted participating local governments the authority to enter into contracts with owners of qualified historic properties. As a result these owners could actively participate in the restoration and maintenance of their historic building consequently receiving the property tax relief. The downtown loft buyers that purchase lofts in “Mills Act” buildings have nothing to do. The abatement is connected to the building, they typically receive anywhere from 45-60% off their annual property taxes by way of the purchase alone.
Current “Mills Act Buildings” In Downtown Los Angeles
Veteran Broker Randelle Green, Broker/CEO of The RandelleGreen Group, downtown Los Angeles’s leading boutique brokerage knows these ropes very well. “I have clients that only purchase Mills Act lofts or condos. This savings is significant and lasts for a minimum of 10 years at which time the building is re-evaluated. I will say that in my 15 years of selling downtown LA, I have never seen a building loose it’s status”. For your convenience Green has listed the current “Mills Act” buildings (For Sale Lofts) in the downtown area:
- The Higgins
- The Douglas
- Pan-American Lofts
- The Rowan
- The Cornell
- The El Dorado
- The Eckhardt
- Eastern Columbia
- The Textile Bldg
- Biscuit Company Lofts
If you’re looking to purchase a downtown loft, want more information or looking to tour. Call Broker Randelle Green at 213-254-7626 or go to www.TheRandelleGreenGroup.com for more information!