THE SALES GALLERY

No strangers to big moves, the Kwons liked the virtual tour of a new Los Angeles condo development so much that they agreed to buy a $1 million penthouse — 2,000 miles from their Chicago home and sight unseen.

"I loved the recreation area, and this is the center of the Korean community," said Dr. Myung Kwon at a recent reception for the unveiling of the Mercury, a 238-unit high-rise in L.A.'s Koreatown neighborhood.

They will find other like-minded couples near their new digs.

More real estate developers are tapping into a renewed interest in city life by empty-nesters and young professionals, and they are spreading to new neighborhoods. Some, like Koreatown, have deep roots with immigrant populations. Developers are finding a ready-made market: buyers who want to be near shops, entertainment and restaurants catering to their tastes.

Developing Crowds

That's been the case for Forest City Enterprises, (FCEA) the Ohio developer that's rehabilitating a 1960s-era office building, once the home of Getty Oil, into the Mercury. For a two-day open house in late May, Forest City bought ads in Korean language newspapers, on TV and radio stations, and in mainstream papers like the Los Angeles Times.

The turnout was nearly too good. So many showed up to take the tour that sales reps had to turn some of the 1,800 visitors away. Interested buyers from as far as New York sent friends or relatives, some with power of attorney to sign deals, says Mary Ann Osborn, regional account manager for Ryness, which is handling Mercury sales. The development's inked deals to sell 14 units priced over $800,000.

This interest may just be the tip of the iceberg.

In late May, the South Korean government said it would let citizens invest up to $1 million in foreign real estate. Before, it was $500,000. And people then were limited to buying personal residences they planned to live in for more than two years.

Korea's government is loosening restrictions for reasons far removed from L.A. Since January the U.S. dollar has dropped 5% against Korea's currency, the won.

The won rise has threatened Korea's economy, where 40% of the national income comes from exports. Letting Koreans take more won out of Korea to invest elsewhere should reverse that rise a bit.

For U.S. real estate markets, the lifting of the won cap means a new source of investment monies.

"There have always been Koreans coming to invest, but I think there will be more," said Jim Yi, a developer representative for Forest City.

Still, inquiries from Korean investors have been flat since Korea announced its policy change, says Wilshire Bancorp (WIBC) senior vice president Gene Sheen.

The community bank is one of the biggest catering to Korean population in the U.S. It has helped finance many U.S. real estate purchases by Korean nationals. Such buys help Korea's growing middle class diversify beyond Korea, where investment rules can be strict.

Making Markets

But with the U.S. housing market cooling, investors are holding off.

"Even though they have an advantage with the dollar-won exchange, they want to wait and see," Sheen said.

Interest could pick up. A group of U.S. bankers, lawyers and other professionals plans to visit Korea this month to tell consumers about investment opportunities in the U.S.

Some of these consumers will likely head to Koreatown. Shouldering downtown Los Angeles and Hollywood, it runs partly along a main city artery, Wilshire Boulevard. Dotted with pre-World War II stucco apartment buildings, and strip malls, it's seen good times and bad.

The worst was the early 1990s. Riots and racial unrest burned businesses and drove some residents to the suburbs. The cycle has turned again, though theft and even gang violence remain more common than in some other parts of the city.

Korean investors have been opening coffee parlors and boutiques next to El Salvadoran restaurants called pupuserias. Buildings are covered with ads for Korean beauty services and spas. BMW and Lexus cars crowd parking lots of Korean BBQ restaurants and karaoke bars.

For those looking to relocate from elsewhere in the U.S., access to these services is a big draw.

Kwon and her husband John, a retired real estate developer, immigrated to Chicago forty years ago from their native Korea.

"We brought an empty suitcase, and we worked so hard," Myung Kwon said.

Now they're ready to kick back. Their grown son lives in Scottsdale, Ariz. They were looking for a second home and investment property when they came across an ad for the Mercury in a newspaper. They liked the roof-top recreation facilities. And Chicago winters are cold.

"The weather here is the best," John Kwon said.

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